Prepaid Credit Cards revealed
With the new bankruptcy laws in place, people are trying to find new methods of having credit cards without the bill at the end of the month. Not all prepaid cards are the same, so the consumer should be fully aware of the terms that each prepaid card comes with. Definitions Gift Card: This is a card for a specific amount for a specific location, like Wal-Mart. Some banks, retailers, and websites offer gift cards with the Visa, MasterCard or American Express logo on them. They are for a specific amount, specific person and usually cannot be replenished. Prepaid Card: This is a card where the consumer puts a certain amount on a card carrying the Visa or MasterCard logo on them. They can be used anywhere that those cards are accepted. The cards are to a specific person, but are replenish able. Secured Card: A Credit company who considers a person a risk will require them to put a certain amount in a savings account at their bank. The amount of the deposit is the amount of the credit line. Unsecured Card: This is the standard credit card offered after a credit check and other verification. Comparing Prepaid Credit Card Providers Western Union: A cardholder can sign up online for the card with a MasterCard logo, and then take their card fee of $19 to a local western union. When the fee has been paid the card is sent. It is personalized, with no transaction fees. Loading is $3.95 with a minimum of $30 and a max of $950. WU has one of the highest load limits of a $950 load, with a $9,500 monthly max. Other fees range from cash withdrawal to overdraft. There is a monthly $4.95 maintenance fee. Rush Card: This carries the Visa logo, and carries a $19.95 card fee. All purchases are charged a $1 transaction fee. The other information on this is listed below. The good feature of this card is that the card is issued, and then you can decide if you want to activate the card. You are only charged a maintenance fee if the account is not used for a long while. Vioxx: This is the card that is being targeted to parents of teenagers. Where to purchase Prepaid Cards Prepaid cards can be purchased anywhere from malls to the local gas station. Typically, the cardholder will buy a card; take to the counter to be loaded with the amount the person wants to have on the account. Usually the credit cards will require a minimum of $20, which includes the card fees. After the card is set up at the store, the company will send a hard card with the account name and number, which will be needed in order to make in person purchases. Benefits of a Prepaid Card The main benefit of a prepaid card is no bill at the end of the month. If there is no money on the card, then the charge will not be approved. For people with no credit or bad credit, the prepaid card allows a user to have a credit card without a credit check. Many of the targeted audience are poor minorities who do not believe in banks, so most of the cards allow direct deposit, so the user will not have to pay check-cashing fees. Another benefit is the ability of the cardholder to rent vehicles, make purchases online, and make cash withdrawals. Drawbacks to Prepaid Cards The main drawback to prepaid cards is that they do not help people establish or rebuild credit. Though some card providers will offer this service, most of the time a fee is involved for them to put your history with the major credit check companies. A huge issue with prepaid cards is that some come with the term "Debit" on it. Most rental places require at least a secured card, so if this is the motivation for the card, then you might want to look into other possibilities, such as the secured card. The fees associated with some of the prepaid companies can be staggering. For example, Rush Card charges a $1 per transaction, until it reaches $10.00. If the fees are over $10 then the excess charges are returned to the account the following month. Loading fees can be enormous if the company only uses Western Union or some other pay program. A minimum load fee will be $4.95. Just getting started with some prepaid companies can be costly. The average price seems to be $19.95 Other Credit Card Options
About the Author
Born in Manhattan at St. Claire's Hospital, Delores was given to a relative at five days old, after her mother was sentenced to prison. Running away, constant death of relatives, and homelessness, followed a troubled and abusive childhood. But it is from this very less than inspiring background that Delores has built the foundation for transformation. Not merely a survivor, Delores became a standard-bearer and trendsetter.