Tips For Getting a Prepaid Credit Card
If you have ever had a credit card, then you are aware of how much money they can make from your purchases.
Whether you like it or not, they are really convenient to have around, thereby difficult to let go of.
However, now that banks have started to see the difficulties consumers are having with the added high interest, and maybe in response to the increasing defaults, they have introduced prepaid cards.
Should you get one? A prepaid card is one you can use like a credit card except you need to have money in that account because it is deducted immediately from your account once you use it.
For example, if you deposit $300 in your prepaid credit card, you can buy anything worth that amount.
Special arrangement can be done for going over the amount, but this is something you will have to request.
There are a dozen or so banks and financial companies offering these prepaid credit cards, so choosing one should be a snap.
Expect to pay an annual fee just like with the credit card but for a fraction of the credit card annual fee.
There is no standard rate, so be sure to compare before applying.
Prepaid cards do have requirements like minimum account balance and deposit.
you will also have a credit limit like the traditional credit card, except this limit will depend on what your deposit is.
In other words, with some banks, you are allowed to go over your balance in the bank, but within very strict parameters.
Of course, you should avoid overdrafting because then it just makes it messy and more difficult to control your spending habits.
The freedom you enjoy with traditional cards has to be stopped in so far as random and impulsive buying is concerned.
Try to stick to the money you have in the bank.
You will see that once you gain control over your finances, you will be able to start saving better for the future.
Some sink holes you will have to avoid when choosing a prepaid card are the following: Don't get one that holds your application hostage by demanding you buy something from them in exchange.
If ever, you could consider those that offer money making opportunities.
Don't get one that does not treat you like a VIP client.
You are handing over your money to them for safekeeping, however temporary.
Thus, the bank should be happy to serve you, and not treat you like secondary bank clients.
Be wary of scams for processing traditional cards or loans.
Do canvas for the best and lowest fees.
You can check the internet for what your options are, and then talk or email them about more details.
And visit the bank if you can to get to know the people behind the website.
Whether you like it or not, they are really convenient to have around, thereby difficult to let go of.
However, now that banks have started to see the difficulties consumers are having with the added high interest, and maybe in response to the increasing defaults, they have introduced prepaid cards.
Should you get one? A prepaid card is one you can use like a credit card except you need to have money in that account because it is deducted immediately from your account once you use it.
For example, if you deposit $300 in your prepaid credit card, you can buy anything worth that amount.
Special arrangement can be done for going over the amount, but this is something you will have to request.
There are a dozen or so banks and financial companies offering these prepaid credit cards, so choosing one should be a snap.
Expect to pay an annual fee just like with the credit card but for a fraction of the credit card annual fee.
There is no standard rate, so be sure to compare before applying.
Prepaid cards do have requirements like minimum account balance and deposit.
you will also have a credit limit like the traditional credit card, except this limit will depend on what your deposit is.
In other words, with some banks, you are allowed to go over your balance in the bank, but within very strict parameters.
Of course, you should avoid overdrafting because then it just makes it messy and more difficult to control your spending habits.
The freedom you enjoy with traditional cards has to be stopped in so far as random and impulsive buying is concerned.
Try to stick to the money you have in the bank.
You will see that once you gain control over your finances, you will be able to start saving better for the future.
Some sink holes you will have to avoid when choosing a prepaid card are the following: Don't get one that holds your application hostage by demanding you buy something from them in exchange.
If ever, you could consider those that offer money making opportunities.
Don't get one that does not treat you like a VIP client.
You are handing over your money to them for safekeeping, however temporary.
Thus, the bank should be happy to serve you, and not treat you like secondary bank clients.
Be wary of scams for processing traditional cards or loans.
Do canvas for the best and lowest fees.
You can check the internet for what your options are, and then talk or email them about more details.
And visit the bank if you can to get to know the people behind the website.
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