Best Prepaid Credit Cards – What To Look For
You may have heard of these and asked, “why are they called credit cards if you receive no credit?” To answer that question and many others, let’s look at them in detail.
Nearly all of the major issuers offer these. The concept is very simple. Once you are approved, and nearly everybody regardless of their history is, you get a card in the mail. It looks identical to a regular one typically with a Visa or MasterCard logo. It can be used anywhere that Visa & MasterCard are accepted and nobody will know that it is prepaid.
The first thing you have to do is fund it. The amount of money you deposit in to your account is the amount of money available to you. You can’t carry a balance, you can’t pay interest or over the limit fees. To avoid any kind of fee, set up a direct deposit. Also bank transfers, ATM deposits, and even a mailed check can fund it.
Most valuable perks including free bill pay, free direct deposit, balance alerts sent to your e-mail or cell phone, and if you have damaged credit report, your positive payment activities will be reported to the bureaus.
These companies are making money off of each transaction that you make yet still, some companies try to charge annual or monthly fees. Make sure to do a lot of comparison shopping and find one that is 100% free to be issued and activated. Some may require that you set up direct deposit in order for it to be free.
As American’s become more conscious of how they borrow money, this card represents one of the safest ways to build positive marks on your report and without the worry of finding yourself in over your head in debt.
Additionally these are a good alternatives for individuals in chexsystem and don’t have a checking account. This is because to cash a check you have to pay a check cashing fee. To pay a bill you must buy a money order. These expenses add up quick.
However a good card will let you use direct deposit for free and may have a program to allow you to pay your bills without having to buy money orders.
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