prepaid credit card

Prepaid Cards

2008-09-26T10:29:00.001-07:00

Prepaid Credit Card

Have you ever used a credit card? If you have, there may have been several different outcomes. One possibility was that you were very responsible. You used the card for all of your expenses so that you could get the rewards your card offered. You never bought anything you didn't really need because you knew whether you could afford it or not. Every month you get a bill and you pay it in full. You reap the benefits of your reward program month in and month out because by paying off your balance, you owe no interest. You've built your credit history up to an exceptional rating of 'excellent' and feel confident that you could get a loan whenever you need it.

Another possible response has a very different outcome. You too use your credit card for everything because you want the cash back or rewards points. One huge difference is that you use your card for everything including things you don't need which often are things you can't afford. Whatever you see that you want, you buy. You charge to your card left and right just thinking about all the rewards you will get. Come bill time, you realize you don't have nearly enough to pay your bill and end up just paying the minimum. The money you don't pay then begins to collect interest and the amount you owe grows faster than you can handle. Your debt skyrockets and your credit score drops fast. You've gotten yourself into a huge mess.

If you are the first person, I would like to congratulate you. You know how to use credit cards to get the most benefit for you. If you are the latter person, you do need some help. Until you get your credit history up, you really can't have a card. This can cause a lot of problems for some people. It will probably keep you from ever buying things on the internet because you don't have a credit card, and it forces you to carry cash all the time, even in large amounts, which isn't always safe.

If this is you, there is a solution. You can get a prepaid card. With a prepaid card, you can still purchase over the internet and use it just like a credit card at shopping malls and restaurants. Instead of giving you credit to spend, you load your own money on the card. This way you can never spend more money than you have. If you have $100 on your card and go to spend $200, the transaction will not go through. Also, anyone can get a prepaid card. You don't have to worry about applying and getting denied because of bad credit.

In order to fix your credit and get rid of debt, you need to learn how to manage your money. A prepaid card can help. It will keep you from spending too much and help you keep track of what you are spending your money on. You may find that a credit card isn't even necessary in your life and a prepaid card can fill the void a lack of credit card leaves.

Do you want to sign up for a prepaid card or find more information about prepaid credit cards for teens? Find out more at CreditCardsforTeenagers.info.

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Prepaid Credit Card

Apply For a Prepaid Credit Card - Five Good Reasons Why

2008-09-20T12:35:00.001-07:00

Prepaid Credit Card

For a number of reasons not everyone is in a position (or wants to) to apply for a regular card and that is why they apply for a Prepaid Credit Card. It's pretty hard in today's world to live without a one as they allow you to make payments where cash or a check are not always possible.

What are Prepaid Credit Cards?

PrePaid Cards are unlike regular cards, since no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent or employer. However, it carries a regular card brand (Visa, MasterCard, American Express or Discover) and can be used in similar ways just as though it were a regular card. Simply deposit money into your prepaid card account and away you go!

Five Reasons To Apply for a Prepaid Card

-- Convenience

Pretty much everyone needs a credit card these days and once you have money in your account, you can use a prepaid card anywhere you would use a regular card.

-- Financial Discipline

A lot of people are worried that they may be tempted to run up large debts and unfortunately many people do exactly that. There are no such dangers with a prepaid card. You can only spend up to the amount you have already prepaid on the card.

-- Budgeting for Teenagers

Perhaps your child mainly shops online or would prefer not to carry cash but due to a lack of any credit history they can not apply for a regular card. (And, let's face it you probably wouldn't want them to have one anyway). Paying their allowance (or part of it) onto a prepaid card could be a great answer. And, it can be a great way to teach them basic budgeting. They can also be given as gifts allowing your difficult to please teenager to choose exactly what they want.

-- Budgeting for Students

Students often need credit cards for a variety of reasons. They make it easier to purchase a variety of goods and services and are great to have on hand in case of an emergency. But maybe they're not quite ready for a regular card. A prepaid card is just what they need.

-- People with poor or bad credit

Some people are unable to apply for regular cards because of poor or bad credit thereby denying them the advantages and convenience of a regular card. A prepaid card could be the answer. You'll be able to do all the things you can with a regular card without having to worry about running up further debts.

Importantly, most prepaid cards report to at least one of the major Credit Bureaus allowing you to re-build your credit rating.

Advantages of a Prepaid Card

The best part about a prepaid credit card is that you can use it as much as you want (up to the amount currently deposited on the card) and you won't be in any debt. The money is yours anyway and you can't spend more than your limit without making another deposit and there no charges apart from a small fee to set up the account and make further deposits.

Dave Nichols owns CardsWithRewards a website dedicated to finding the right Credit Card for you! To find out more about Prepaid Cards and view card comparisons visit the site today!

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Prepaid Credit Card

The Benefits of a Prepaid Credit Card

2008-09-16T23:18:00.001-07:00

Prepaid Credit Card

Perhaps the first thing to be said is that a prepaid credit card is something of a misnomer. If something has been prepaid, then it is not strictly speaking, of course, a "credit" transaction. But the name has caught on because prepaid "credit" cards can be used - for most intents and purposes - just like a standard credit card.

The principle behind the prepaid credit card is rather akin to the - now old-fashioned - idea of a book or record token, or a prepaid phone card. In other words, a payment is made in advance against an anticipated future purchase and, provided there are sufficient funds represented by the token or the prepaid card, the transaction can proceed without the need for any cash payment at the time of the purchase.

Prepayment is made by "loading" the card with cash paid in at the Post Office, a bank, a PayPoint or Payzone till. This can be made through an employer, a transfer through a bank, or by using a standard credit card. The prepaid card is then ready to be used in just the same way as a normal credit card would be used.

To complete a purchase, you will need to key in a PIN number at the shop counter and the amount of the transaction is deducted straight away from the balance on the card. The prepaid card can be used in the same way for shopping online.

There are a number of benefits to using a prepaid credit card:

• Perhaps the most important is the control it exercises over spending. Since all purchases are prepaid, it means that you are accumulating no debts through its use and spending is limited to however much has been pre-loaded onto the card:

• It can be a good way of controlling a child's spending, for example, with a monthly statement of how the money has been spent;

• Carrying a pre-paid card is also somewhat more convenient and safer to carry than cash;

• For similar reasons, many such cards are also an ideal alternative to travellers' cheques when travelling abroad. Some providers of prepaid credit cards now also offer currencies such as Euros and US Dollars for easier use when withdrawing the pre-loaded cash abroad. Once again, they are more convenient and probably safer than carrying local currency.

Because prepaid credit cards involve no actual spending on credit, an applicant's credit history or rating is irrelevant to the card-provider, so they will be issued without the usual credit reference checks.

Of course there are charges involved in obtaining and using a prepaid credit card and these are probably the main drawback. Some providers may charge an application fee when the card is first issued and others might charge a monthly subscription fee. There may be fees for loading the card with cash and/or fees for making purchases and withdrawing cash. If the card is lost or stolen, some providers might charge for the issue of a replacement and still other providers might charge a renewal fee when the existing card expires.

When considering just how useful prepaid credit cards might be for you and your family, therefore, it would be important to consider how much you are likely to pay for their use.

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Prepaid Credit Card

Prepaid Credit Card - Easy Money

2008-09-08T22:36:00.000-07:00

Prepaid Credit Card

Consumers have never had it so good. Not only do they have a problem of plenty when it comes to deciding what to buy, they are faced with as much choice regarding methods of payment. First cash, check, credit and charge cards, and now the prepaid credit card too!

If you're wondering what a prepaid credit card is, it's not very different from a debit card linked to your checking account. A prepaid credit card is one where a deposit is made into an account, and the card can then be used like any other, until the deposited amount is exhausted. This is great news for a large number of consumers, especially those who have a bad credit history and hence do not qualify for a regular credit card, or those without bank accounts. Now they can avail of the convenience of a regular credit card, which not only allows them to purchase at different establishments, but also enables transactions such as hotel or flight bookings and online purchases.

Getting a prepaid credit card is simple, hassle free and does not involve a cumbersome approval process. In fact, users can even acquire one online at websites such as or .That's probably one of the reasons why it is gaining so much popularity, with some of the big guns expecting to more than double their prepaid credit card sales this year! While a small deposit or fee might be charged at the time of applying for a prepaid credit card, there are no interest payments or monthly bills to worry about. Also, since there is a cap on the amount that can be spent, it's the best way to kick the habit of overspending. In addition, it's a good way of keeping track of where the money is going!

These cards, also called stored value cards, have found application in a number of other areas, such as payroll, with over 10% of people with no bank accounts having one. Gift cards are another growing segment. A lot of fancy research reveals that more people prefer to gift a card rather than cash or paper certificates. Retailers too have cashed in on this opportunity by introducing their own prepaid cards, to be used within their outlets. Another example is that of companies which provide a prepaid credit card to employees who need an expense account. Interestingly, a prepaid credit card can also bring in a bit of extra income for existing users who are rewarded under a referral program. See and for more details.

Of course, there is also a flip side to the prepaid credit card. Since there are no interest charges, companies that issue such cards charge a fee at the time of account activation and also whenever the card is topped up. Another limitation is that providers of certain services, especially those which are subscribed to on a periodic basis, do not accept a prepaid credit card as a method of payment, owing to the risk of the account not having sufficient funds over a long duration. On the whole, however, the merits of a prepaid credit card outweigh its drawbacks.

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Prepaid Credit card

Prepaid Credit Card For Teenagers

2008-08-16T02:46:00.000-07:00

Prepaid credit card

More and more are looking for prepaid credit cards for teenagers. Ever since, it has been the biggest challenge of finding the right provider of credit cards. But only a few numbers of banks have the most decent and fair laws, rules and regulations in giving the right credit card services to teenagers. Finding the right one is very hard and needs a lot of research from the internet, past clients, reviews and others. Good to know that there are teens who are generous enough to give their unbiased thoughts and testimonies about the company that they have applied and have been approved for their credit cards almost immediately.

There are literally thousands of credit card providers who are giving easy and smooth application process in the industry. I am not very good about bragging things but allow me to share my discoveries and other teens' recommendations for prepaid credit cards for teenagers. I know how teens feel when looking for the right company for their credit card application because I myself have swept the web looking for one.

Nowadays, as a result of the daily growth of competition, many companies and bank programs have emerged and giving unfair advantage to people who come in first. But you must be very careful of the company to choose. These companies have been around for quite a while and are accepting teen clients that are willing to apply to have their credit cards. The best thing is: many people have applied before and have chosen this service for you! As for their experience and satisfaction, I can assure you of the best recommendations. Have access to the right place to apply for credit cards as been tested and proven by thousands of individuals across the globe. Visit Credit Card for Teens

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Prepaid credit card

What's the Difference Between a Secured, Unsecured and Prepaid Credit Card?

2008-08-01T01:28:00.000-07:00

Prepaid Credit Card

Secured, unsecured and prepaid credit cards are generally targeted to those of us that have 'less than perfect credit'. This ubiquitous industry catch phrase basically means that 1. you have a bad credit score or 2. you have no credit score at all (i.e. teens, recent U.S citizens, etc.). So, what's the difference between the three, and which one is right for you? Let's take a closer look.

Secured Credit Cards

A secured card is much like a debit card. Your credit line is equal to the amount of cash you deposit into the account. So if you make a $500 deposit on your secured card, you'll be able to use the card up to $500 (minus any annual or additional fees the card issue may charge you).

Secured cards typically report your payment transactions to the 3 major credit bureaus, so you have a way to show you are making payments on time. This will result in a higher credit score over time and the ability to eventually get a regular loan or credit card.

Some current examples of secured cards are the Applied Bank™ Secured Visa®, Bank of America Secured Visa® Platinum Card, Orchard Bank Secured MasterCard® and New Millennium Bank Secured Platinum Visa® or MasterCard®.

Pros:

* Good for rebuilding or establishing credit
* Allows for online shopping (and possibly online bill paying)
* Allows for use of most ATM machines
* Reports to the major credit bureaus
* Pre-set limit keeps you from going over the limit
* Peace of mind when traveling, etc. that you have a card as opposed to carrying cash

Cons:

* Possible high monthly/annual fees
* Possible high interest rate
* Possible nickel and dime you to death with additional fees

Unsecured Credit Cards

An unsecured card is essentially a pre-approved loan, with interest rates higher than a similar personal bank loan. An unsecured card is generally issued to those who have a fair or even bad credit history but have demonstrated some ability to repay accrued debts. Credit limits are determined on an individual basis, and may be raised or lowered based on performance.

Those of you with fair credit scores, this option may be for you. It is basically like getting a bank loan, but you have the convenience of a credit card tied to the loan for purchasing, etc. Those of you with really bad credit scores - forget this one, and focus on an unsecured or prepaid card instead.

Some current examples of unsecured cards are the Continental Finance Gold MasterCard®, Salute® Visa® Gold Card, Total Visa® Card and Tribute® Gold MasterCard®.

Pros:

* Good for rebuilding or establishing credit
* Allows for online shopping (and possibly online bill paying)
* Allows for use of most ATM machines
* Reports to the major credit bureaus
* Many cards let you apply online and get your decision in seconds
* Peace of mind when traveling, etc. that you have a card as opposed to carrying cash

Cons:

* Possible high monthly/annual fees
* Possible high interest rate
* Possible nickel and dime you to death with additional fees

Prepaid Credit Cards

Prepaid cards function just like credit cards in nearly all aspects, but you have to pay the spending limit up front. It's like a prepaid phone card you can use to buy anything.

The most obvious benefit is that you can't go over your limit. The most obvious down-side is that most prepaid cards require a start-up or activation fee. In general though, they are still excellent cards for those of us that need the convenience of a card - yet still have that pesky 'less than perfect credit'.

Some current examples of prepaid cards are the AccountNow® Prepaid MasterCard®, All-Access® Visa® Prepaid Card, Baby Phat Visa® RushCard™ Prepaid Card, BuyRIGHT Prepaid MasterCard®, Eufora Preferred Credit Builder Prepaid MasterCard®, RushCard™ Prepaid Visa® Card, UltraVX Visa® Prepaid Card and theWired Plastic Prepaid Visa® Card.

Pros:

* Typically don't require credit or employment check to apply
* Allows for online shopping (and possibly online bill paying)
* Allows for use of most ATM machines
* Possible reports to the major credit bureaus
* Pre-set limit keeps you from going over the limit
* Peace of mind when traveling, etc. that you have a card as opposed to carrying cash

Cons:

* Possible high start-up/activation fee
* Possible high monthly/annual fees
* Possible nickel and dime you to death with additional fees

Conclusion

For those of us with 'less than perfect credit', a secured, unsecured or prepaid credit card may be the answer. Any of these cards will certainly give the flexibility of having a card to shop online and give peace of mind by not having to carry cash anymore. A few of these options will even help you rebuild or establish your credit. The key is to read the fine print and not apply for a card that is going to charge excessive fees.

Michael Gracen is the founder of Loud Market (http://www.loudmarket.com), a credit card review web site. Loud Market offers consumers recent, unbiased and free reviews of 200+ cards in order to help them make intelligent decisions before applying for a card.

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Prepaid Credit Card

Prepaid Debit Card Offers - Are They Right For You?

2008-07-01T21:57:00.000-07:00

Prepaid Credit card

If you have less-than-perfect credit, you may find it hard to get approved for a regular credit card. You still have some credit options, however. One of these is the prepaid debit card. Following is information on how this type of card works, its advantages and disadvantages, and two to consider applying for.

About Prepaid Debit Cards

Prepaid debit cards entered the market in the 1990s. They are similar, in some ways, to a prepaid phone card. You place money into your account, and then are able to make purchases. Once the balance runs out, you have to load more money into the account.

Loading money onto the card is fairly easy. Some cards let you call in and transfer money from one account to another. You can also load money by accessing your account online. The amount of money you put on the card becomes your credit limit.

Advantages of Prepaid Debit Cards

There are several advantages to this type of card. First of all, it is available for just about anyone over the age of 18. So if you have a history of poor credit, this may be a smart choice for you. You can use the card instead of carrying around cash. Paying with plastic is sometimes safer and easier when it comes time to check out.

Most prepaid debit cards are issued through Visa or MasterCard, which means they are widely accepted around the world. Since the credit limit is determined by the balance on the card, you do not have to make monthly payments. This saves you the hassle of bills and potential late fees.

Disadvantages of Prepaid Debit Cards

Many prepaid debit cards come with a number of attached fees. You might be charged an application fee, as well as a fee for monthly maintenance. Some also include a charge every time that you make a purchase.

These costs may seem steep; however, it is important to remember that this card is an option for you if you're having trouble getting approved for different forms of credit. By understanding the fees involved, you can make sure you use the card in a way to get the most out of it as possible.

Two to Consider

There are a variety of options available if you want a prepaid debit card. One of these is the READYdebit card issued by Visa. This card has a minimum amount of fees. You can load money for free through direct deposit and bank account transfers. Also, it advertises that all who apply will be approved.

Another option to look into is the Bank Freedom Prepaid MasterCard. No credit check is performed when you apply for this card. There are also very few fees involved. With both of these options, you can enjoy many of the benefits of a credit card without having to worry about having good credit in order to get approved.

If you decide to get a prepaid debit card, do some research before you apply for one. Look online at the different choices available. When you find one that fits your needs, fill out the application. The card will arrive in just a few days.

Click Here to Find Prepaid Debit Cards.

Ed Vegliante runs the website http://www.Credit-Card-Surplus.com , a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers. View more Credit Card Articles.

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Prepaid Credit Card

What is a Prepaid Debit Card And What Are Its Advantages and Disadvantages?

2008-06-15T21:47:00.000-07:00

Prepaid Credit card

In the 1990s, credit card companies incurred heavy losses because of many credit card users defaulted on their payments. Thus, credit card companies had to come up with a new way to collect debts. It was during this period that credit card companies began offering secured credit cards and prepaid debit cards. Today, most credit card companies such as Visa, Mastercard and American Express issue prepaid debit cards.

The Prepaid Debit Card Concept

A prepaid debit card works similar to a prepaid phone card. You purchase a prepaid debit card by paying the amount you want as your limit. You can add funds to your prepaid debit card at a retail location or an online bank. You use the prepaid debit card like you would use a credit card. The only difference is that the transaction amount is deducted automatically from your prepaid debit card. You can keep using the prepaid debit card until the balance reaches zero.

Benefits of Prepaid Debit Cards

You can enjoy many benefits by owning a prepaid debit card.

* You won't need to carry a lot of cash with you every time you go out.

* If you travel frequently, you can use your prepaid debit card in countries where your card's issuing company provides this service. Mastercard, American Express and Visa all issue prepaid debit cards that you can use in many countries. Banks have also started issuing prepad debit cards to their clients.

* With a prepaid debit card, you won't have to worry about monthly credit card bills and missing credit card payments each month. If you are 18 years old or older, you can apply for a prepaid debit card and use it, irrespective of your credit history. Even if you have a not-so-good credit history, you can still avail of a prepaid debit card since this type of card requires funding.

* You can easily reload or add funds to your prepaid debit card. You can do this by calling the issuing company and authorizing them to transfer funds to your prepaid credit card or getting online and doing the transfer yourself. This feature of a prepaid debit card makes it very convenient for you to transfer funds, particularly when you are traveling or on vacation.

The Downside of Prepaid Debit Cards

Like other cards, the charges levied on prepaid debit cards can be high. There are fees for applying for a prepaid debit card, adding funds to it, exceeding its limit as well as cashing out and cancelling the card. So before you sign up for prepaid debit card, compare the fees offered by the issuing companies. Go with the one that has the lowest fees and the best terms. It costs about $5 to reload a prepaid debit card so make sure that you put an initial funding that is high enough. And when you need to reload your prepaid debit card, add enough funds so that you don't find yourself reloading frequently.

Keeping Your Prepaid Debit Card Safe

To access funds from your prepaid debit card, you will need to have a PIN. Keep your prepaid debit card safe from unauthorized use by changing your PIN every so often. You should also never reveal your PIN to anyone. It's also a good thing to ask your bank or issuing company to set a daily spending limit on your prepaid debit card in case you lose your card or someone finds out what your PIN is.

Even though prepaid debit cards have some disadvantages, their benefits outweigh them. Prepaid debit cards are especially a good solution for people who are unable to get approved for a credit card because of a poor credit history.

If you get a prepaid debit card, you should use it carefully and responsibly, much in the same way you would wisely use a credit card. Because it is very easy to reload a prepaid credit card, you may fall into the trap of using it too often and too much. Remember that you can only use it as long as you have funds in it and as long as you have funds to add to it. Keep track of your transactions so you never run out of funds.

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Prepaid Credit Card

How Do Prepaid Credit Cards Work?

2008-06-14T10:44:00.000-07:00

Prepaid Credit Card

Credit cards are a part of daily life these days. Having established credit is very important for many reasons from getting financed to getting a job. Prepaid credit cards are a way for someone who can not get a traditional credit card to build credit. There are some pros and cons to prepaid credit cards, so shopping around and being informed is important when getting one. A prepaid credit card will help build credit without the risk of falling into debt and hurting credit even further.

A prepaid credit card is basically like any other credit card. It is backed by one of the major credit card companies. Prepaid credit cards, though, are completely controlled by the user. The account for the card is opened with a deposit that is then the credit limit. Whenever the user desires more money can be added. Only the amount of money that is in the account can be spent. If the user tries to spend more than their limit the card will be denied. Prepaid credit cards can be a great option for someone looking to build credit.

The advantages to a prepaid credit card differ somewhat from those of a traditional credit card. In some sense a prepaid credit card offers more advantages. As mentioned, there is no way that a user can go into debt using a prepaid credit card because the balance is limited by how much is deposited into the credit account. The card also carries no interest charges. They can be used wherever a traditional card is used. Prepaid credit cards can also help build credit because some companies report the payments made to the credit bureaus. Prepaid credit cards offer the convenience of a credit card without the worry.

There are some things to consider about prepaid credit cards. There are fees for loading and, sometimes, not loading a prepaid card. There may be limits for how much money you can put on the card, as well as limits on how much needs to stay on the card. Prepaid cards vary in the fees charged and other features. Also some cards do not get reported to the credit bureau, so if building credit is the goal then it is important to look for a card that reports to the credit bureaus. Shopping around and comparing different cards will help you find the best card deal.

Getting a prepaid credit card is not difficult. There are many online sources for finding these cards or the major credit card companies all offer their own prepaid card. The application is simple with no credit or employment check. There is usually a small set up fee and then the deposit. Once you receive your card you can then begin using it.

Prepaid credit cards offer people a way to have a credit card when they can not qualify for a traditional credit card. They offer many benefits to keep a person from further hurting their credit record. There are a variety of prepaid credit cards, so comparing different cards before choosing one is a good idea. Prepaid credit cards are a great way to use credit without getting buried in debt.

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Prepaid Credit card

What is a Prepaid Credit Card?

2008-06-13T02:12:00.000-07:00

Prepaid Credit Card

I've long advocated cash as the perfect solution to people who can't keep themselves to a budget. It's simple, you take $100 a week or whatever out and that is your spending money. You spend it on whatever you like but when it's gone it's gone. This system works wonders for people who lack the self control needed to stick religiously to a budget. You simply remove all plastic from the equation and there is no way they can overspend.

Prepaid credit cards provide the same benefit, but without the hassle of having to carry all those papers and coins around. basically the theory works like this. You put money on your card, and you use it as you would use a normal credit card. But instead of each transaction increasing the amount you have to pay at the end of the month, you are decreasing the positive balance you have on the card. When it reaches 0 you can't use it anymore. In other words it's impossible to get into debt with a prepaid credit card just as it is impossible to get into debt when you use cash to stick to a budget.

If you've ever used a prepaid phonecard the idea is basically the same. You put a set amount of cash on the card, you use it however you want to and once your balance reaches $0 you either top it up or stop using it. When incorporated into a sound budget plan the card gets topped up again at each payday, and never in between.

The one major benefit that a prepaid credit card gives over cash is that you can get a monthly break down of where your money has gone. If you are in financial trouble, analyzing your spending is a critical part of getting everything back on track. Hopefully you have already worked out how much 'spending' money you can afford and this is the amount that is put on your prepaid credit card each pay day. But you can further analyze where your spending money goes by looking over your account. most people find a few things the first few months that they are spending more money on that they ever realized. When you limit the supply of money - such as by using only a set amount of cash or a prepaid credit card - then the value of each dollar seems to be more. I have actually personally seen two people give up smoking when it was spelled out to them by this method just how much money they were literally burning every month.

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Prepaid Credit Card