If you are considering getting a pre-paid card there are some concerns you should have.
Not all of these cards are built alike.
Some will have fees and other issues you should be aware of.
We will discuss three of these concerns below.
When you make payments to your card account, the funds are available immediately right? Not necessarily.
Some companies have delays as much as 24 or 48 hours! You should ask what the delay will be when the card is funded.
If you plan to use the card by putting money on it to be used immediately, be careful you don't end up with a bad fit for your needs.
Fees.
Some card companies consider a pre-paid card as a card for people who can't get a credit card.
Often there will be hidden fees that you should be wary of.
There is no good reason to pay a high fee to borrow your own money from your card.
On the opposite end of this spectrum, some cards will put the backing money into a money market or a savings account, so it continues to gain interest while it sits in that account.
This seems like a small issue, but it can add up over time.
So as you can see no two pre-paid card agreement is alike.
You should carefully consider all of the terms and conditions for a card before getting one.
It may be that once you weigh all your options that getting a card that is pre paid is not even the option you should pursue.