Archive for October, 2009

Prepaid Cards for Teens - Establish Responsible Spending Habits

Saturday, October 31st, 2009
Cindy Steele recently asked:


While most experts would agree that giving credit cards to teens may not be the greatest idea in the world there most definitely is a viable solution in the form of prepaid cards for teens. Prepaid cards offer many advantages including having the ability to set spending limits while teaching youngsters how to manage their finances responsibly.

As you may know there is a difference between a credit card and a prepaid credit card. A credit card is what most of us use and provides the card holder with a pre-arranged line of credit with a lending institution. The credit card holder can spend this money anytime, anywhere, agreeing to pay back the amount in full, plus interest, by making at least a minimum monthly payment.

By contrast, using prepaid cards, does not involve borrowing money. Money must first be deposited into an account before the card can be used. The card holder can only spent the amount of money that has been deposited. Funds can be added to the card and no credit check is required to get this type of card.

These prepaid cards for teens are also sometimes called “preloaded cards” or “debit cards” but there isn’t much difference between any of them. Different prepaid cards have different monitoring options depending on the set up of the card and the institution that issues it. Sometimes a parent can actually monitor their teen’s use of the card and see where the money is being spent.

There are some basic similarities between prepaid cards and credit cards that make them advantageous for use by teens. They work exactly the same as a credit card and can be used wherever a credit card can be used. It allows them to make purchases online, over the phone or at stores, gas stations, restaurants and the like.

Probably the most sought after function that teens and parents are looking for in prepaid cards is the ability for the teams to access cash through an ATM. These cards can make it very easy and convenient for the teens to do just that. It is extremely easy to add additional money to the account which makes this card ideal in case of emergencies.

There are fees involved with using prepaid cards for teens. Some cards charge an annual membership fee, while others will charge a monthly fee. There can also be nominal withdrawal fees and fees for monthly statements if you choose to have one sent to you. There are however, no inactivity fees.

Cards differ on their terms and conditions for prepaid cards for teens. Make sure you know what the terms are, what fees will be incurred and the rules and regulations for use. Choose one that will work well for your particular situation and your teen. Prepaid cards for teens can teach a teenager responsibility and money management skills without having to deal with interest rates or the concern of overspending and debt accumulation.





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What is a Reloadable Card? What are the Benifits?

Sunday, October 25th, 2009
The CreditLawGroup recently asked:


A reloadable credit card is a prepaid card consumers can use just like any other credit based card with a Visa® or MasterCard® logo. The great thing about them is there is no risk of getting yourself into financial trouble by getting into debt because you can only spend how much you loaded onto the card. These are popular with many teens and people who have trouble managing their spending. Some cards offer a credit builder option where the company reports your use to credit bureaus improving your credit score. They offer very little fees compared to some sub-prime credit cards (Usually around $10) and are a great alternative to carrying cash or even having a bank account. Many companies are now offering various services on their cards such as direct deposit of your paycheck, online bill pay, and allow you to reload your card at thousands of major retailers such as 711®’s and grocery stores.

With  Lenders becoming more strict about approving consumers for credit cards many people are turning to reloadable credit cards to build their credit score. This is a great option for anyone who finds it difficult to responsibly use credit cards, yet want to have most of the benefits credit cards offer. You can use them anywhere traditional credit cards are accepted and provide consumers with a safer alternative to carrying cash or even a debit card. They are great for parents who can provide their children with money while their away at college or just for allowance.  The best service to benefit people who have bad credit is various companies credit builder service, for a monthly fee (usually about $6) the company will report your monthly payment to the major credit bureaus which looks excellent on your credit report. It actually will look much better than most people realize because to creditors they see that you have a spotless payment history  on a credit card even though in reality your only paying less than $10 a month.

As you can see Reloadable credit cards or prepaid cards are great alternatives to credit cards or secured credit cards with high annual fees and interest rates. They are great for people looking to build their credit or just have a card for the convenience of shopping online or other things. It’s important to remember that in today’s society you pretty much need a some type of card. To rent a car or book a hotel room most often than not a credit card is required. So for consumers that cannot get or simply don’t want a line of credit, reloadable cards are a great alternative.

When attempting to repair your credit combining the efforts of adding positive tradelines to your credit report and deleting negative tradelines is very effective in boosting your credit score. This will eventually save most consumers thousands of dollars in high interest fees over the years. If your serious about improving your credit score Contact CreditlawGroup at (800) 508-0041 our competent legal representation can help protect your rights and remove inaccurate, outdated, unverifiable, incorrect and other erroneous items from your credit report.





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How to Find the Right Prepaid Credit Card

Sunday, October 25th, 2009
Prepaid101 recently asked:


Prepaid credit cards, also known as prepaid debit cards, are becoming popular among people unable to qualify for a checking account or credit card. With all the card options, it’s always helpful to know what you are doing before you go out and get a card.

Often, people look at prepaid credit cards as being all the same; however, different cards have different types of fees, features and services. This article will guide you on how to find a prepaid card that is right for you.

Step One: Identify Card Use

If you are in the market for a prepaid card, the first thing you should do is identify why you are getting the card. Will you be using it on a regular basis? Or will it only be used for special occasions? The majority of cardholders use prepaid cards to handle their personal finances, such as paying for groceries, bills, and other necessities. On the other hand, some people like using prepaid cards for special occasions, such as vacations, traveling, and online shopping. Identifying how you will be using your prepaid card will help narrow down your card options.

Step Two: Identify Card Features

From the previous step, you identified how you plan on using your prepaid card, now you need to identify what card features you are looking for. ATM withdrawal and direct deposit is common among most prepaid credit cards and usually a necessity; however; some features, such as SMS text alerts and short-term loans, are more of a luxury and only offered on select prepaid credit cards. For example, a card with higher deposit limits and free bill pay may be more important features if you’re using the card to handle most of your personal finances, but not as necessary for someone using it just for vacation. Make a list of features you need, a list of features you want, and a list of features you can deal without. This will come in handy when you begin searching card offers.

Step Three: Identify Card Fees

The last thing you will need to identify when choosing the right prepaid credit card are the fees. Every card is set up differently and has its own fee structure. Not all prepaid cards charge the same type of fees, but some of the more common fees you can expect to see are: activation fees, monthly fees, bill pay fees, ATM fees, and transaction fees. Identify all the possible fees you can expect to pay along with an ideal and maximum amount you are willing to pay for each fee. This step helps by set a budget for how much you are willing to spend on your prepaid credit card.

Step Four: Card Comparison Sites

Now that you have an idea of what you are looking for in a prepaid credit card, it is now time to start shopping around to find the card that fits your needs. With so many prepaid cards available to choose from, it can be quite time consuming searching through so many card offers online, this is why card comparison sites are so useful. Most credit card comparison sites have categories for prepaid credit cards, but since these sites are formatted for traditional credit cards, the prepaid information may not be as useful. It is better to use a card comparison sites that are designed primarily for prepaid credit cards. These websites are great information resources for finding the right prepaid card; you can compare prepaid credit cards, read card reviews, and get information on a variety of prepaid credit cards without searching the internet for each card individually.

Step Five: Apply and Review

Now that you have used a prepaid card comparison site to find the prepaid card that matches what you need in a card and what you are willing to pay, all you have to do is apply. Once you have applied for the prepaid card that is right for you, write a card review on the prepaid card comparison site that you used. By writing card reviews, you can contribute to the community of prepaid card shoppers by sharing your own personal experience with the card.





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The Award Winning - Cashplus Prepaid Gold Mastercard

Thursday, October 22nd, 2009
LEO MEER recently asked:


Want a credit card but can’t get one due to poor credit ratings?…

CCJ’s and defaults maybe the reason, but there’s no need for the poor fellow who can’t get one not to get the benefits of a real credit card anymore.

It can sometimes be difficult to get the best deals because you don’t possess a credit card, or have to borrow or ask someone to purchase something online because you haven’t got one. No more…

For those of you who haven’t yet been introduced to the concept, a PREPAID MASTERCARD is just like a normal CREDIT CARD, looks and feels the same, the only difference is that you TOP IT UP just like a PAY-AS-YOU-GO-PHONE. You load it with your own money and use your own money - simple and straight forward!

There is no credit check needed, no bank account and it’s 100% acceptance. No debt, spend only what you top up.

Whether it’s just purchasing online, using when travelling, sharing money with family, managing your budget, there are so many uses for the award winning Cashplus Prepaid Gold card. It will become your everyday card for everyday transactions.

I personally have one and think it’s great as it allows me to shop online, use in stores and also make withdrawals at ATM machines. Better yet, it’s the only prepaid card to hit the UK market that offers free purchase protection - so your money is protected.

What makes it even better is the fact that you can have your wages paid directly onto it, so it’s ideal if you don’t have a bank account.

Additional cardholders are also offered and this is a great way to share money with family or your spouse. I personally use mine for this function and it’s great!

The best thing about this particular card is that unlike any other prepaid card, it’s got the look and feel of a REAL credit card.

I’m so fond of my Cashplus Gold Mastercard that I think others could benefit greatly should they know of it. If you want to know more then visit the site mentioned below.

www.mycashplusmastercard.co.uk





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Do Prepaid Credit Cards Have Rewards?

Monday, October 19th, 2009
Tom Tessin recently asked:


Many credit card companies offer their customers a reward for using their credit card. The reward can come in the form of points that you may use to select products from a catalog. The rewards can be used as frequent flyer miles, or free travel on airlines. Rewards are often given as gasoline points letting you get free gas after you have spent so much money on buying gas from service stations using the credit card. You should make sure that you get a credit card that offers this feature that is good at any service station not one that is only good at your neighborhood service station. The reason being when you go out of your neighborhood the credit card is not useable and if you are depending on the gasoline rewards to make a trip then you will be sadly disappointed. The overall gasoline credit card should be issued from one of the major oil companies that provide gasoline all over the country.

The most popular prepaid credit card with rewards is the one that offers cash back when you make purchases. Remember if the credit card is prepaid you have already made a deposit in a savings account to secure your credit card. It is very important when you use the card to make your payments on time and if possible pay each purchase made each month. You should make sure that you are not being charged high interest rates or a large yearly membership fee. All these things take away from the rewards that are being offered making your prepaid credit card with rewards a poor deal.

When most people apply for a prepaid credit card, they often think of it as a gift card and it doesn’t have the rewards that one doesn’t want. This couldn’t be further from the truth. With so many cards out there on the market, it’s easy to find one that will suit your needs. The reason that I like these type of cards so much is that you’re able to control your spending and the banks will reward you for it. You can get rewards such as interest back on your money that’s placed in a deposit account to getting points for every dollar spent.

When looking for a card of this nature, there are a few things that you need to keep your eyes peeled for. The first things you want to look out for are the fees. Prepaid cards can kill you when it comes to fees. This is why it’s important to read the fine print when it comes down to applying for one. They have fees that range from monthly to weekly fees. A good card will have no fees at all. This is why you’ll want to try and avoid these. A good prepaid card is going to control your spending, there are going to be no fees and it’s going to have a major logo so that you can use it everywhere. If you can find a card like this, you’ll be set to spend.





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Prepaid Credit Card Uk: Ties Your Hands From Needless Spending

Saturday, October 17th, 2009
Amy Gordon recently asked:


The idea of prepaid credit card UK is quite interesting and brilliant as it will from now onwards help people in cutting down their unnecessary expenses. Unlike other credit cards it will not allow you to make unstoppable shopping and there will be limit for you to spend. You will find such cards to be easily available, convenient and its approval is guaranteed.

These cards will help you a lot in keeping yourself away from the huge credit card debts. The amount to be spent in these cards use to be limited and hence, your hands will be tied from spending it unnecessarily. People are therefore, going more for these cards as it does not let people to drown into debts. The best thing about these loans is that these are applicable in almost all merchant locations. Moreover, you can use these on the phone or internet too.

The unmatchable advantages that you will get to enjoy only in these cards are that no income proof will be required, no employment verification is necessary and the processes of approving too is quite fast. In addition to that, the reason for which people mostly goes for these loans is that these are available for all. All bad credit holders are eligible to get these loans. Such allowed bad credit records are:

Arrears

Late payment

Skipping of installments

Defaults

Bankruptcy

CCJs

There is good security for using the prepaid credit card UK and hence, you will not have to worry for the security of your money. These prepaid cards are being protected by PIN numbers. No one will be able to break your identity system and thus, you too will be safe from theft. Moreover, keeping track of the expenses will become quite easier. You can track it by using phone or through online and hence, your child to cannot deceive you.





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Prepaid Debit Cards For A Tough Economy

Sunday, October 11th, 2009
Jennifer Rast recently asked:


The concept of prepaid cards is not a new idea in itself. It has existed in one form or another for a number of years through gift cards and phone cards. Applying the concept to a Visa or MasterCard has brought about opportunities that can benefit many people.

With most companies offering a 100% approval rating, a prepaid card is easily obtained and will not have any impact on your credit rating. This will help people who need to make purchases for goods or services on the internet, but are not able to apply for a credit card.

There are many possible ways a prepaid card can be used for internet purchases or offline purchases. If a retail outlet accepts a Visa card or MasterCard, the chances are it also accepts payment from a prepaid card.

How can a prepaid card benefit you?

The main benefit for all prepaid card owners is the fact debt cannot be accumulated. It enables people to shop freely with the amount of money they have loaded onto the card. Once the balance has been used up, there is no possibility to spend more unless additional funds are added.

Parents will be able to add money to a card for their children and not have to worry about them carrying cash or falling into debt. If the card does get used fraudulently, the cardholder is normally protected and would need to contact the card issuer to resolve any issues.

By using a card, a teenager will be able to learn to effectively manage their finances and improve their budgeting skills. The card may be used to top-up mobile phones, pay for travel expenses or even paying for the latest chart-topping CD or DVD. As long as there is a balance on the card, a teenager will be able to have full control over how they spend it.

“Prepaid cards have a number of benefits to parents and consumers. Control over spending is the largest benefit,” says Peter Klamka, (http://www.myspace.com/peterklamka) an Ann Arbor, Michigan based consultant to the payment industry.

An additional benefit is that parents can authorize any relative or friend to add funds, so there is no need to send cash through the mail when wanting to send birthday money.

On top of this, no interest charges are applied to card balances and no penalties for late payment. People are free to top-up the card anytime they need additional money for a purchase.

There are two popular types of cards. The single use card which is also known as a gift card has a preset dollar figure at the time of purchase. One may or may not be able to reload these cards. The second type of card is a reloadable spending card. In many cases, these cards are purchased with no value at the initial purchase. Consumers are then able to add money to it. For the youth market, these cards can be tied to a parent’s bank account. For the unbanked, most use Western Union or MoneyGram to add funds to their personal spending card.

Overall, although a prepaid card offers a convenient method of paying for things, it should be used responsibly and due care should be taken to store it even when all funds are used. If you have paid for something using the card, it may be required as proof of purchase.





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Prepaid Credit Cards for Teenagers

Wednesday, October 7th, 2009
Margaret Tye recently asked:


Have you been wondering how you can teach your teen to behave responsibly when using a credit card? No parent wants to see their child get into financial difficulty running up debts that they cannot afford to pay off, yet many of us know from experience how easy it is to succumb to the temptation of thinking that we can afford to buy now and pay later. Of course we learn through bitter experience that this is not always the case and we don’t want our children to make the same mistake.

One way of helping them learn to manage their finances is to give them a prepaid credit card. Technically of course, this is a debit not a credit card as the card is pre-loaded with cash.

There are a number of reasons why you may decide to get your teen a prepaid card. It may be that you simply want them to learn how to manage their own money and by topping up their card on a monthly basis they will hopefully learn how to budget. Your teenager may be going to university and you want to be sure that they have sufficient funds when they need it, for example a quick phone call to you means that you can top up the card in an emergency . Or your teen may be off on a gap year and you can rest easy knowing that funds will reach him quickly if needed.

There are several advantages to a prepaid credit card.

There are no credit tests needed to obtain one, anybody can apply.

It is impossible to run into debt, only the amount credited to the card can be spent.

If the card is stolen only the outstanding cash on it could be lost, although most cards can be blocked in these circumstances.

The disadvantages are minor, normally there is an application fee when getting a card.

Many cards charge a monthly fee, but this is could be cheaper than a teenager running up interest charges on an ordinary card!

Most cards allow withdrawals from an ATM machine, but charge a fee. These charges vary from company to company and it is worth shopping around to find the best buy to suit your circumstances.

There are a lot of cards now being offered and you should read all the terms and conditions carefully to ensure that you are getting what you require. Check there is no delay in being able to use the card as soon as it has been topped up, that you can withdraw from an ATM machine or use online. Well known names offering a Mastercard will probably cover all your needs. Be careful that you are not buying a non-reloadable gift card.

If you choose carefully and explain to your child that the money you will be depositing

on the card is to cover a certain period of time and they must try to budget, hopefully they will begin to learn how to do just that!

This article is for information and the author accepts no liability for any action taken.





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Compare Prepaid Cards: Get the Best Prepaid Credit Card Easily

Sunday, October 4th, 2009
Amy Gordon recently asked:


The prepaid credit cards are now the latest choice of people. Everybody likes using these cards as unlike the general credit cards there will be no scope of unnecessary and excessive expenditures. People if cannot control their expenses then at least these cards will restrict them from doing so. This is the main reason why the prepaid credit cards are being adopted mostly by people. If you too want to have a card like that you can go for all the cards available in the market and then choose the right one. For that you can compare prepaid cards.

For getting fair and brief comparison among the cards you can take help of the online services. As all the quotes made by the online companies are being provided distinctly, so, there will be no difficulty in doing so. In fact, you will be able to save your time too.

Moreover, you would have to focus on certain essential points and factors. The prepaid credit cards do not use to have Annual Percentage Rate, but these use to have a kind of monthly charges. The lower the monthly charge, the better the card is. Therefore, you should find such a card with lower monthly fees.

Also some cards use to have transaction fees. Therefore, your aim should be searching that cards which do not have such fees. Such cards should be chosen which do not charges extra for being used in the ATMs. Moreover, the cards should be re-loadable. Cards offering frequent re-loadable facilities are better.

For repairing your credit rating, you can use these cards. Its use will help you in having a good credit record. You can succeed in searching out the best card through such methods of compare credit cards. Even that is why, many believe on this procedure when it is about going for the best cards.





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