Prepay credit card
Prepaid credit cards are those credit cards that are issued against the money deposited in the designated account or loaded in the credit card account itself. Thus, these credit cards are secured credit cards and a person is allowed to spend money up to the limit granted against the sum deposited. Prepaid credit cards are popular in many countries across the world like U.S and are taken by people suffering from poor credit in good numbers. This is because such people are not able to become eligible for unsecured credit cards.
Prepaid credit cards are used in the same manner as unsecured or regular credit cards are used and are accepted at millions of locations across the globe. One of biggest advantages of prepaid credit cards is that a person never falls into credit card debt as no purchasing is allowed after the limit granted. These cards have rationalized the unscrupulous use of credit cards. Once limit has been achieved, money has to be deposited in the account for making further purchases. Another benefit of prepaid credit cards is that unlike regular credit cards, there is no interest charged. In principle, prepaid credit cards are same as debit cards linked to the checking or savings account. People that are not able to qualify for regular cards have found these cards very useful in reserving rental cars, rooms in hotels etc.
Terms and conditions attached with prepaid credit cards differ from one source to another. In most of cases, a person has to pay set up fee for opening the account. Amount of setup fee vary from one source to another but it is generally in the range from $5 to $10. There is also an additional fee that is to be paid at the time of depositing more cash into the account.
Prepaid credit cards also play an important role in the building or improving of credit history of a person. Most of issuers of prepaid credit cards report to credit bureaus about the repayment behavior of a person and since there is no debt created, there is no outstanding.
Some prepaid credit cards
Account Now Prepaid Visa is one of leading prepaid credit cards in United States. It is issued by Meta Bank and is a stored value card. There is no requirement of banking account for getting this card. However, a person is required to make an advanced payment for offsetting future purchases. Payments can be made in an easy manner through the paycheck of card holder and this payment is loaded automatically to the card. Apart from direct payment, this prepaid card can also be loaded by wiring money from other bank accounts or through the Money Gram Express Payment facility. A person is required to pay an account set up fee for $9.95. Monthly participation fee is $9.95. There is no set up fee if a person goes for direct deposit loads. Card holder gets free bill pay services for first 7 transactions each month. Free credit builder services are also provided. Repayment behavior of card holder is reported to national credit reporting agencies.
Vision Premier SM Prepaid Visa Card is also one of important prepaid credit cards in United States. Personalizes cards are issued to applicants on the basis of identification check. Card holders are also able to get access to rewards program in which they are able to earn one point per dollar. These points can be redeemed for wireless airtime minutes. Card holder is required to pay a weekly fee up to $0.95. With direct deposit facility, this fee is waived. There is one time activation fee of $9.95. If a person signs up for direct deposit, this fee can easily be rebated. For withdrawing cash from ATM, fee of $1.95 is charged. If purchases are made through PIN, fee charged is $1.95. Minimum fee in the first year is $101.35. Card can be reloaded free of cost with direct deposit. At retail locations, fee of $5 is charged. This prepaid credit card can be reloaded at more than 100000 retail locations offered by Bancorp Bank. This prepaid card is offered along with many other benefits like visa $0 liability, online shopping, round the clock access to ATM, online bill payment etc.
Similarly, Vision Silver SM Prepaid Master Card is also one of leading prepaid credit cards in United States. This credit card is issues by Meta Bank. There is no credit check and thus, people with all credit types can apply for this card. Activation fee attached with this card is $9.95. Afterwards, cardholders are charged with monthly fee of $3.95. A shortage fee of $25 is also charged if their account becomes negative. ATM usage and PIN transactions also attract some fee. Benefits of this card include unlimited signature transactions, email alerts, online statement access, automated customer services etc.
Another prepaid credit card available in U.S is Buy Right Pre Paid Master Card. This card is issued by Meta Bank and is one of best rewards prepaid credit cards. Initial load required is $20. There are many ways of loading funds into this card. There is no fee if funds are loaded through direct deposit. Funds can be easily used for future purchases. Account set up fee attached with his card is $29.95. Card holder can choose from monthly fee of $4.95 or per transaction fee of $1. Card holders are also allowed to sign up for the credit building program. Under this program, card holders are approved for $7500 lines of credit to be used for purchases at smartcreditshopping.com. For merchandise purchases, a fee of $10 is payable. Payment history is reported to credit bureaus.
Baby Phat Prepaid Visa Rush Card is also one of important prepaid credit cards in United States. This card is issued by the Manufacturers and Traders Trust Company.
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