Prepaid cards…. a study in “Why Would You Do This???”
Wait! I forgot! It’s because we’ve all got a few credit issues and this is but one option..(you can tell it’s not my favorite choice, can’t you??)
It’s the beginning of my series this week on credit cards for the credit challenged and we’re starting with my last choice and working toward the best option later in the week.
Actually, before I lapse on here, there are a few good things about these pre-pays. The one I am recommending come with my tightwad approval. What exactly is a pre-paid card? It’s a card you pre load with money, unlike a debit card which is only attached to a specific bank account, like your checking account. Why are they a tolerable option?
low fees. Most credit cards charge an arm and a leg and your first kid, for anything plastic extended to the credit challenged… not so with these pre-paid cards. Although there are better choices among them. Don’t buy a pre-paid card if you can help it at one of the retailers, like Wal-Mart or CVS. Often those are the kind that charge you for loading, charge for reloading, charge you to check your balance …etc. Try this one, The Wired Plastic Prepaid Visa Card. Low, low fees.
options- The reasons I actually love that Wired Plastic, mentioned above is for it’s flexible pricing, it has a rewards program and more card loading options than you have money to load it with. If you do look at getting a pre-paid card, read the fine print. Many of these charge you if you make a payment online versus at a retailer, or by phone. Wired Plastic has free-direct deposit, bank transfers, Instant cash loading at a whopping 100K plus retailers.
free stuff- One more reason to more than tolerate this pre-paid card, is its free customer service, ability to schedule monthly bills to transfer from the card automatically and yes… one more item worth mentioning- this little bit ‘o plastic has Personal Pay, which allows you to use the card like a check and send money…zap…electronically… (which takes all the fun out of overdrafting yourself writing checks)…
If you opt for any pre-paid card, read the fine, fine print!!! Do not assume because you’ve loaded cash, there are no charges. Most prepaid cards charge monthly fees.. so watch fees, read the print and use the card as it’s supposed to be used. (i.e. pick a card with low fees, and make payments via whatever preferred method to save on charges)…
By the way, those of you not familar with Blog Carnivals, should check out the Money Hacks carnival, hosted by “My Life Roi” …check it out for the greatest of blogs on money this week… (hey, we’re on there, too- it’s gotta be good)
http://www.myliferoi.com/2009/07/money-hacks-carnival-75-get-job-edition/
One Comment
Free customer service is one thing that can go a long way in helping pre-paid cards to establish themselves in a strong way in the credit section.