Poor credit is not the only reason to have a prepaid credit card, however if poor credit is the case you will benefit from the options it offers. When you have made mistakes in the past with your credit and you want something you can use to shop on the internet, pay your bills over the internet, or a quicker way to pay for gas and buy groceries, a prepaid credit card is great and will save you more than if you were to use a real credit card.
There are two basic Briansclub styles of prepaid credit cards; one is a reloadable card that is more like a debit bank card. The other is a onetime load that when the money runs out the card is no longer usable. Adding cash to the card is similar to having the bank hold your money but this is more personal.
You add the money you keep track of what you spend and you cannot go over your limit where you have to pay fees for spending a dollar too much. If you do not have funds on your card, you cannot use it. It is a debt free credit card. The options to put your cash on a card can help you with keeping track of your spending. Without the hassle of high interest and paying a monthly bill you cannot afford.
There are many different prepaid cards available; however, you want to research, different cards and find out how much the cards cost for first time purchase. Find out if you get a temporary card with purchase and obtain the permanent card after calling or logging in to the company or if you must wait for the card after applying online. If you need the card immediately then this may help you decide which card is better for you.
If you do not have a temporary card, you will still have a credit card number you can use on the internet or over the phone, you will not have something to swipe until your card arrives in the mail, in most cases it will take seven to ten business days. There is also a few companies you can find online that will allow you to apply for the card free, you then will receive your card in the mail. At that time, you can add money after you have received it.
Monthly fees do come with most cards such as a three to five dollar fee for having the card. This is not a large fee compared to a regular credit card also remember you are not paying interest on any of the money you spend from your card. If your prepaid card has more than a five-dollar monthly fee, you should find out why it is higher than most prepaid cards. You may be paying for an option that you have not signed up for.
You can check your balance on the internet or on the phone. However when you check your balance on the phone your probably paying a fee for that option anywhere from 25 cents to one dollar, even if you are dialing a toll free number. This can end up costing you a lot of money if you are not careful. Another way to check your balance is through text, you will send you code to the company and within seconds, you will have your balance on your cell phone.
Some of the benefits from a select few companies will waive the monthly fee if you add up to 2000 dollars in a single month. That will not roll over to the next month it is added for the month that will give you that option. In addition, you can add direct deposit to most of the prepaid cards. If you are looking for this option, your card will need a tracking or reference number other than your account number. However, some companies will charge for this also, so be careful.
Some of the card will charge you an amount every time to add the money to the card and others will not. This may or may not be a deal breaker. If you maybe have other people add money to your card, they will be able to do so with the cards that cost to add money to your card.
Another option that a variety of prepaid credit card companies contains is a great program to assist you to rebuild your credit. Each company will offer different options; rules for this option are basically the same. They will report the good standing with your card to the credit bureaus each quarter. This is a great way to rebuild your credit. This option does cost a small monthly fee but even if you add this to your card, you will still be spending less than a regular credit card.
You can also find prepaid cards that are only one-time loads; these styles of cards are good for gifts, teenagers, and even vacations. When the card is empty, you can cut it up and dispose of it. Teenagers may have a hard time hanging on to a credit card if it falls in to the wrong hands it takes forever to cancel it, get money back if it was used, or receive a new one in the mail. Also, they will not be able to go over their spending limit.