Who Should Get A Pre paid Credit Card?

While pre paid credit cards offer instant approval, it’s important to understand that these are not the same as a regular credit card.  First, prepaid cards do not provide its holders with a borrowing limit.  Second, these credit cards require the submission of a cash deposit in the cardholder’s account. Third, the cardholder can only use a prepaid credit card if there is an available balance in the account.

However, despite the limitations, those who have a problem with their credit history can use pre paid credit cards to rebuild a poor credit rating.  Through regular use of this card, the cardholder can slowly but surely build up credit history without the risk of bad debt.

Who should apply for a prepaid credit card?  If you cannot qualify for a regular credit card and you want to establish or build credit, then a prepaid card is a good option.  For parents who need to send money to their kids in college, providing them with their own prepaid credit cards is the most convenient and safest way to send and receive cash.   Travelers can also use prepaid credit cards as a safer way to pay for all their travel expenses..

How to Get A Pre paid Credit Card?

Pre paid credit cards can be acquired by visiting your nearest bank or by submitting your application online.  To get approved, the applicant must first open a deposit account and submit the minimum required payment.  The amount can range anywhere from $200 to $500 and above, depending on the prepaid card issuer.  Keep in mind that the amount of your security deposit will also determine your spending limit.

Since charges are automatically paid using the funds in the cardholder’s account, there is no need to worry about additional interest rate fees.  Nevertheless, there are other costs that can be expected such as the set-up fee, maintenance fee, transaction charges, and possible penalty fees.

Can you use a pre paid credit card for establishing credit or repairing bad credit?  The answer is yes as long as your chosen issuer offers credit reporting service to the three major consumer reporting agencies.  Before making choice, check out the complete terms and conditions of the prepaid credit card.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Pre paid credit cards, and their debit card counterparts, revolutionize the way people spend. Through these cards, people are able to spend only within their means. How is that possible? Well, by using these cards, cardholders are required to load cash first onto a prepaid debit card or credit card before they could use their prepaid cards for purchases, cash withdrawals and even reservations for hotel accommodations and car rental services. Once the fund loaded onto the prepaid card runs low, all future purchases and payments will be declined, and this will prompt the cardholder to load cash again to his credit or debit card.

Though some prepaid cards are known to have fees and charges, a lot of people recognize the value of switching to these cards. As we all know, a credit card holder is prone to overspending because of impulse buying and lavish shopping sprees. In the end this individual may find himself with lots of debts, which, most of the time, is very difficult to pay completely. By using a prepaid debit card, an individual could easily control and monitor his expenses on purchases and ensure that he does not fall into a debt trap.

A lot of parents are also acknowledging the importance of these prepaid cards. A growing number of parents apply for these cards and provide their teen agers prepaid debit or credit cards. In so doing, these parents are able to provide their growing kids access to plastic cards while also retaining control over the way their children spend the funds loaded onto the prepaid cards they hold on to.

But is it difficult to apply for these prepaid cards?

Well, applying for these cards is very much similar to the method used in opening bank accounts. You need to provide important documents like proof of residence, contact information and identification cards. Then you could choose any of the three platforms for applying for these prepaid cards. You could choose to apply over the phone, online or through a personal application. After applying, you will be asked to wait for the prepaid cards to arrive via mail, and once activated and loaded with cash; you could soon enjoy the benefits of your own prepaid debit or credit card.

So we hope that you have gained much insights and information regarding prepaid debit cards and prepaid credit cards.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Tip 1: Avoid the Costliest and Most Frequently Incurred fees. – This requires an individual to look closely at the fees and common charges imposed on prepaid debit cards. To get the right prepaid card, you need to look for cards which do not require transaction fees, charge less than $5 for maintenance fees, and charge at most $5 for loading fees. By taking these fees and charges into consideration, for sure you will be able to find a prepaid debit card or credit card that will not devoid you of much of your savings and income.

Tip 2: Look for a prepaid card program that provides an online feature of managing your credit and purchases. – A lot of credit companies and banks provide online platforms for checking and monitoring your prepaid cards. So, make sure that the card you are applying for provides this special feature so that you could be assured of knowing how you spend the money you load onto your prepaid cards and determine the status of your prepaid account.

Tip 3: Make sure that the prepaid debit card you will get is accepted everywhere. -  Make certain that the prepaid card that you select is backed by major card networks such as Visa and Mastercard. It is important so that you could be assured of having your prepaid card accepted in most Automated Teller Machines (ATM’s) and commercials stores and shops worldwide.

Use these helpful tips and soon you will be able to locate the right prepaid card that will suit your needs and provide you much convenience. By then you will realize the significance of being diligent, inquisitive and rational enough in choosing for yourself the right prepaid credit card or prepaid debit card.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Prepaid Credit Card Advantages

Easy Access. Because no credit check is done, anyone can get a reloadable prepaid card at any time.

Budget Friendly. Do you have a problem with overspending?  With pre paid credit cards, spending can be put in control more strictly since you can only use it if you have an available balance in your account.  Once your available funds have been used up, the card must be reloaded with cash before it can be used again.

Avoid Bad Debt. A prepaid card does not provide a credit line so the risk of incurring bad debt can be avoided.  There is no need to worry about paying the interest rate or late penalty fees which can cause debt build-up.

Convenience. Reloadable prepaid cards are great for people who are always on the go.  If you’re a frequent traveler, you can simply take your card with you instead of bringing a huge amount of cash.  Parents who have college kids who stay at boarding schools can send allowance though prepaid cards.

Prepaid Credit Card Disadvantages

Although there is no interest rate or late penalty fees, there are other costs associated with reloadable cards that you should watch out for.  Find a prepaid card with reasonable fees by checking out comparison websites online.  What are the costs that you should know about?

Upfront Fee. Although no credit check is required, most Issuers require the submission of an upfront payment.  Sometimes the fee is known as “application fee” or “activation fee”.

Maintenance Charge. Prepaid cards usually carry an annual fee.  However, aside from the annual fee, you may also be charged with a monthly maintenance cost or “service charge” to keep your account active.

Reloading Charges. Some Banks may impose an additional fee each time you make a deposit in your prepaid card account.  In this case, it is a good idea to find a prepaid debit card Issuer that will not charge a reloading service.

Purchase Fees. Generally, there is a purchase fee for each transaction you make.  It does not matter whether you made the purchase from a regular store or online.  You can still be charged a minimal fee  for every purchase.

Card replacement and renewal fee. In case you lose your prepaid card, there is a fee when you request for replacement.  Also, the issuance of a prepaid card is often good only for a certain time period.  When your card expires, you must pay a fee for the card renewal.

Yes, there are advantages with using pre paid credit cards.  However, before getting one, consumers must make sure that there will be no hidden costs or unreasonable charges associated with their chosen card.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Prepaid Credit or Debit Cards for Everyone

Issuers of prepaid debit cards give everyone the chance to use plastic money without going through a complicated approval process. Unlike standard credit cards that require good credit history, credit check is not necessary to get a debit card. All that is required is an advanced deposit which will be used for payment.

Just like a regular credit card – you can use it when buying groceries, shopping at malls, paying utility bills, or purchasing from online stores. As long as you have available funds in your account, you can use it to pay for your charges.

Prepaid Debit Card Limits

What makes a prepaid card different from a real credit card? First, we must understand that a debit account does not come with a credit line. Each time a debit card is used for payment, charges are instantly paid off using the deposit in the cardholder’s account.

For instance, if you have made a $300 deposit, you can only use your debit card for charges up to $300. If you want to continue using it for more, you must make a new deposit in your account.

Prepaid Debit Card Advantages

Generally, prepaid debit cards are accepted anywhere credit cards are accepted. Most merchants allow both credit and debit card payments. This is especially true if your prepaid card bears the Visa or MasterCard logo.

Prepaid debit cards are great for people who are often on the road or on trips abroad. Instead of bringing a large amount of cash, they can use a debit card for most of their travel expenses. Students can also benefit from prepaid debit cards since it prevents them from incurring bad debt. For parents, they can conveniently send cash to their kids through their prepaid accounts. Even employers who hire home based employees or freelancers can use a prepaid debit card to send wages or service fees.

Although some people may frown at the thought of not being extended a credit line, those who want to control their spending will find this limitation as a blessing. And because you are not allowed to go over your limit or to pay at a later time, extra fees such as interest rate, overdraft fees, late penalty fees, and other credit card surcharges are completely eliminated.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Important Factors that Must Influence Your Decision

First, you need to know the factors to look for from a prepaid credit card.  For instance, you need to find a prepaid card that is supported by a major issuer or processing service.  This way, you can be sure that you can use your card for payment or purchases anywhere you are.

Ideally, you want to go with a card that has a Visa or MasterCard logo.  Amex is another popular name in credit cards but there are more merchants and establishments that accept Visa and MasterCard payments.

It is also crucial to make sure that your chosen card imposes no hidden fees or unreasonable costs.  Pre paid credit cards are great because you won’t be charged with interest rates or late penalty fees.  However, prepaid cards do charge a transaction fee each time you swipe the card for payment.  If you’re not careful, you could end up with a credit card that imposes expensive fees.

Check online for prepaid credit card reviews from finance groups and cardholders.  People who have personally used the card often share their views by posting articles or comments on blogs, forums and social community group discussions.

There are prepaid debit cards that also offer rewards.  You may be awarded points each time you use your prepaid card to pay your bills or make purchases.  Points may be equivalent to available credit in your account or may be exchange for merchandise.  If you can find a prepaid card with reward offers, then surely it’s worth considering.

Other factors that you should check on are prepaid credit card features.  Does it allow online banking?  Can you access your account online?  Does it offer 24/7 customer service?  Does it offer fraud protection?

Lastly, you want to choose the issuer that provides credit reporting to the major credit bureaus.  In the past, prepaid credit cards do not report payments to the bureaus so they cannot be used for building credit history.  Today however, there are prepaid credit card issuers that do offer this service.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Incentives

There are some that offer extra load when you refer a friend to apply to the same debit card company.

Easy application process

Everybody who wishes to apply can be legible, even those with poor credit history are entitled to apply. No background check, employment verification nor credit history check to undergo. The application procedure is lax unlike from credit card because their basis is on the money that will be deposited, so the approval is assured.

Security

Entering a credit card number on the internet can be very uncomfortable. Using a prepaid card is a lot safer because aside from already been accepted as a mode of payment online, the crooks can only get the value that has been loaded on the card. You feel secured using the prepaid card whether online or in person.

Better than cash

Bringing huge amount of cash in malls or anywhere can be uneasy. It can also be too enticing for those who have bad intentions, if they see that you’re bringing all those cash in hand. Another thing is that if your cash is lost, then it can no longer be returned back to you. But if you’re debit card gets misplaced or lost, you can still replace a new card.

Convenience

Debit cards, like credit cards, have been widely accepted anywhere: malls, grocery stores, online, restaurants and gasoline stations. You can also pay (either online or by phone) your bills such as utility bills, phone bills and other bills that you have to make. In some cases, they more accepted than credit cards.

Controlled spending

Spending is more controlled with a prepaid card because it depends on how much is the load. Compared from bringing cash, it is also easier to keep track the money when your card is used. If it’s already empty when you’re about to make payments, the transaction gets automatically declined.

Develop financial responsibility and discipline

It teaches how to use and handle money responsibly. When doing purchases on the internet, it is easier to track where the money was spent. You can see the transaction history online and you can also do it by phone. So, you can be sure that you won’t lead into any kind of debts. Overspending is impossible to be experience with prepaid debit cards because of the limited balance. This certainly is a skill that can be developed with debit card and not with credit card.

The procedure when purchasing is almost same as using a credit card. Once you’re at the cashier, you hand your card to the clerk, sometimes they ask you to sign on the receipt, then your card and the receipt is given to you. Then, you’re done. This card when used for purchasing,is not as risky as a credit card and the process of application isn’t that complication.

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About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Having poor credit rating raises doubts to your capacity to pay debts. Naturally, credit card companies are looking for those who can pay off their debts on time and with a great credit history to prove it.

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Good thing, those who have poor credit rating may apply for prepaid credit cards. There is no background check or credit check conducted upon review of your application. The application procedure is a lot more convenient than applying for a credit card. Issuers of prepaid debit cards does not care about your credit standing. In fact, a prepaid card can be used to rebuild a bad credit. How can that be possible?

Prepaid Debit Cards and Bad Credit

Today, you can have a debit card that does payment reporting to the three major credit bureaus. Thus, as you use your prepaid card for purchases, you are also improving your credit rating.

You can go online and do research on various prepaid credit cards advertised in the market. Compare different debit cards before making a choice. Consider these important pointers:

• go for one that best suits you and your needs
• go for those that report to the major credit bureaus
• go for the one with reasonable fees

Owning a debit card can be a great way to control your spending. Set a specific budget each month and stick with the plan. Before using your debit card, check your available balance and carefully consider whether you really want to spend it for that particular purchase or save it for more important buys.

Unlike credit cards that allow you to shop now and pay later, you can only use your prepaid debit card if there are available funds in your account. This limitation prevents debit cardholders from damaging their credit or getting stuck in bad debt. Also, there is no need to think about over-the-limit charges, over draft fees, late charges, and interest rates.

Yes, you can apply for a debit card to rebuild your credit rating one step at a time. Once you have proved your credit worthiness, that’s the time you can apply for a regular credit card with good rates.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Who Needs A Prepaid Card?

Parents who want to provide credit cards to their college kids but may be hesitant to do so for fear of the risk of bad debt.  With a prepaid card, that risk is eliminated.  Parents can choose to limit the amount of cash deposit in their teen’s account so they will be able to stick with a budget.  Once the balance in the account runs out, the cardholder cannot make anymore charges to the card.

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Prepaid debit cards are also practical tools for frequent travellers.  It is a great way to shop without cash.  These cards carry the Visa or the MasterCard logo and are a recognized mode of payment in many establishments worldwide.  For online shoppers, a prepaid card is a safer way to shop since you don’t have to reveal your credit card information or bank details.

Advantages of Using Prepaid Cards

What are advantageous of using a prepaid card?  Consider these:

Convenience. Prepaid cards provide the same convenience as credit cards.  You can take your card with you and make purchases without cash.

Cost efficient. Unlike credit cards, there are no interest rates, late penalty charges or over-the-limit costs.

Safe and quicker money transfers. Prepaid cards can be used for quicker and safer money transfers.  If you have a teenager who’s staying in a boarding school, you can send money to your child any time using a debit card.

Control your spending. Prepaid cards cannot be used for advanced purchases.  This reduces the risk of buying on an impulse or spending more than what you can afford.  If you don’t have a balance in your account, you will have more time to consider whether or not you really need to make the purchase.

Build or rebuild your credit history. The great improvement with debit cards is that they can now be used to build credit history or improve a low credit score.  Find an issuer that will report your payments to the three major credit bureaus (Experian, Equifax, TransUnion) and you should be able to improve your credit standing one step at a time.

Costs of a Prepaid Card

Prepaid cards do not charge you with interest rate, over-the-limit costs or late penalty charges, but you need to be aware about the fees before choosing one.  Take note that you will be charged a transaction fee each time you use your debit card for payment.  There is also an annual fee to keep your account active.

Just as it is important to read the fine print when choosing a regular credit card, the same step is important in choosing a prepaid debit card as well.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

What Are Prepaid Debit Cards?

A prepaid debit card is a mode of payment which can be acquired by people with bad credit.  If you can’t get a regular credit card that requires good or excellent credit history, then a debit card is made for you.

You can use a debit card just like a credit card.  However, you must first submit a cash deposit to your account before using it for payment.  The amount of deposit you have in your account also determines how much you can charge to your debit card.  Once you have reached zero balance, you must make a new cash deposit to your account.  What are the pros and cons of a prepaid debit card?

The Pros of Using A Prepaid Debit Cards

Cashless shopping. Instead of bringing along a significant amount of cash when buying your groceries or strolling at malls, you can simply bring your prepaid debit card for safety and ease.

Convenient for travels. Travelers can also enjoy the convenience of using a prepaid debit card instead of paying with cash or checks.  Prepaid debit cards with Mastercard, American Express and Visa logos are accepted wherever credit card payment is available so you can take it anywhere you go.

No need to worry about repayment. Once you charge a bill to your debit card, it will be instantly paid off using the money you deposited.  With a prepaid card, you don’t have to think about payment due dates, interest rates or late penalty charges.

Anyone can get a debit card. Applying for a prepaid card is so easy and you are automatically granted an approval regardless of your credit history.

Avoid the risk of bad debt. With a prepaid card, unplanned purchases can be avoided since you can’t use it if you don’t have existing funds in your account.

The Cons of Using A Prepaid Debit Cards

Per Transaction Fees. Prepaid debit cardholders must remember that there is an additional fee for every transaction.  To cut back on costs, plan your purchases ahead of time so you can pay for all your purchases at once.

No credit line. Some people dislike prepaid debit cards because they can’t borrow against their credit.  However, if you take a look at the advantages, you will see that owning a prepaid debit card is worth it.

About the Author

Tara Tiemann is a credit analyst of Go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!