Why Many People Will Need a Prepaid Credit Card During This Recession
Credit cards are a part of daily life these days. For each of us to establish a good credit rating is very important for many reasons from getting finance to getting a job.
Prepaid credit cards are a way for someone who cannot get a traditional credit card to build credit. The classic case here is the person who has declared themselves bankrupt. Once anyone does that their credit rating is reduced to zero and people describe that as having a bad credit rating, or just bad credit.
This is where a prepaid credit card can be a life saver.
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 your credit rating 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.
Walmart and Walgreens provide prepaid credit cards but there are many others. You load the card with an amount of money. Then you re-load it every time you need to use it.
Prepaid credit cards are really becoming popular because they are convenient and allow you to better budget your money than a regular credit card.
Charges vary from card to card, but it’s always best to compare fees before deciding which prepaid card is best for you. You can also find links on the above site to purchase prepaid cards.
Pre-paid credit cards are credit cards in which the owner of the card deposits funds with the credit card issuer to be accessed via the card. This is in contrast to a traditional credit card in which the credit card issuer gives the user a card without receiving any money in advance.
The merchant uses their standard procedure for accepting credit cards of any type. This often involves swiping the card through a terminal. In this case, the terminal is connected to a network that allows the card to be approved or declined. In the case of a pre-paid card, the amount of the purchase is compared to the amount of funds remaining from the original deposit. If there are sufficient funds available, then the transaction is approved. The amount of the purchase is deducted from the funds that were originally deposited with the credit card issuer and the remaining funds become the card\’s new balance.
Any government agency can deposit unemployment benefits, child support payments, etc. directly into a prepaid card, as your employer can do. You might be able to put money in it by yourself. The money can be used right away and the amount you spend or withdraw is deducted from it immediately. Just like debit cards, prepaid cards have a personal identification number.
There\’s nothing simpler. You pay up front. When the card runs out, you refill it. Use it like a credit card, but no bill at the end of the month, only a statement showing what you\’ve spent. That\’s why it\’s prepaid.
All you do is to decide how much to put on your prepaid credit card – and deposit that amount on the card, as you would into a bank account.Watch the video related to prepaid credit card
ConsumerAffairs.com’s Mark Huffman reports a “secured” credit card might be a good option, but make sure you don’t get an “advance fee” card instead.
Help answer the question about prepaid credit card
Can you order a product online using a prepaid credit card?Can Prepaid card be used like Visa Buxx and other to order something online? They ask you for the credit card number and expiration date, does the Visa buzz and other prepaid credit card has it printed on the card?
March 14th, 2009 at 12:33 pm
Yes there is a way for you get a prepaid credit card with your name on it. Its take 7-10 days and its is a credit card.
It cost like 10.00 please see walmart dealer or https://www.walmartmoneycard.com/walmart/homepage.aspx
I hope it works.
If you have a bank card visa that will work also.
March 14th, 2009 at 12:58 pm
A debit card should work–I've been using my MasterCard branded debit card online for years. However, there are occasionally sites that say they don't take debit cards.
In that case, you could try getting a secured credit card. You make a deposit to the bank which becomes the limit of the card (you can't touch that money, so make sure you can afford it). So if you put $500 on a secured card, you would have a credit card with a $500 limit. After a year or less, the secured card will become unsecured and you get your deposit back and it becomes a regular credit card. It reports as a regular card to the credit bureaus too, so no one would know it's a secured card but you. Bank of America has one that is supposed to be very good.
You could also try shopping through sites that use Paypal–you can have Paypal draw directly from your checking account.
March 15th, 2009 at 1:14 pm
As long as it is a valid Visa or Master card etc. yes
March 15th, 2009 at 2:07 pm
sign up for a paypal account and use the card on that, paypal doesnt care if its prepaid, and choose paypal at ebay checkout
March 17th, 2009 at 12:21 am
sometimes those prepaid debt cards cost
you anywhere from 5 to 20.00 and thats just to get
the card, then there might be charges for non-use or even if you
use a monthly charge.. and do you want to use a ATM more fees
.
read the fine print
I would sugggest you can open a checking account usually for
a low balance or even free of monthty charges and most
of those checking accounts include debit card which works
just like a credit card..
March 17th, 2009 at 6:32 am
I don't think so..
March 17th, 2009 at 7:50 am
yes, in some ways it's better.
You have already paid the money ahead of time and now you can use it, up to the limit of your payment minus the fees charged for managing your acct. With a prepaid credit card you cannot go over the limit. so you realistically have no debt with the company because it is prepaid.
March 17th, 2009 at 10:57 am
If you want a reloadable prepay card you will need to get a Green Dot Card.
Most of the others are prepaid Visa cards with a set limit and they can't be reloaded. You buy a $100 Visa Gift Card and use it up but can't reload it because it is not a real account. (Does not have your name on it).
March 17th, 2009 at 1:20 pm
Prepaid cards won't, but secured cards very often report to the credit bureaus, and they WILL improve your credit.