Prepaid Credit Cards

Prepaid Credit Card Reviews

Anyone who has ever managed to get into financial difficulties with traditional credit cards will probably shy away from getting a new one, but a prepaid credit card is designed to offer customers a responsible way of shopping, paying their bills and regaining financial control.

There are Visa and MasterCard prepaid credit cards on the market, which operate like a debit card that also allows customers to shop online. Depending on which card provider one chooses for a prepaid credit card, cardholders can enjoy features like loading their card online or at thousands of loading stations, have money deposited onto their card and have it available immediately, use their card in store or online, pay bills and do away with the need for a bank account all together.

Even government assistance payments or monthly pay checks from one’s employer can be deposited onto such cards and, unlike traditional check or bank transfer payments, cardholders have instant access to the deposit made on their prepaid credit card.

Fees

Before signing up to a prepaid credit card, customers should read the fee structure carefully, as some cards can be very expensive to use. Apart from a one off activation fee of around $10 and a $20 - $30 fee for an express delivery of the card, should the customer be in a hurry to receive the card, there are also monthly fees to pay. Around $6 per month is average and in addition, cardholders are typically charged for each and every transaction they make that requires a PIN entry, be it in store when making a purchase or paying a bill or when obtaining cash out of an ATM with the Visa or MasterCard debit card sign.

The fees charged for domestic use can be anywhere around $1 per PIN transaction in store and $1.95 for each cash withdrawal, but there are also “decline” fees, when insufficient funds on the card mean that a requested cash withdrawal or online payment cannot be met.

International use of a prepaid credit card can be very expensive for cash withdrawals, charging around $5 per transaction for ATM withdrawals and just doing an international ATM balance enquiry will be charged at around $2 each time a customer want to check their balance while on holiday or on business abroad.

For cardholders who wish to travel abroad it may be better to apply for a prepaid currency credit card, which can be used free of charge abroad, as it is uploaded with the currency of one’s choice to start off with, like Euros for example for a trip to Europe. Using such a prepaid credit card during one’s time abroad also helps to keep control of the holiday travel budget and is a safety precaution in case of theft or loss, too.

Freedom and Flexibility

With a prepaid currency or prepaid credit card for domestic use, cardholders are free from the constraint of a traditional bank account and can work anywhere in the world. See also, READYdebit Prepaid Visa Card, Green Dot MasterCard, Wired Plastic and Bad Credit Credit Cards. If you are looking to build or re-establish your credit you may want to consider a secured credit card.