Archive for the ‘Finance’ Category

Prepaid Credit Cards Help Build Credit History, Improve Credit Score

Saturday, May 1st, 2010
Lisa Nichols recently asked:


Using a prepaid credit card can help build a superior credit history. Prepaid credit cards provide people with a poor credit history or no credit history a chance to improve their credit score. Prepaid credit cards look like a major credit card, often a Visa or a MasterCard, but they act like a traditional debit card from a bank or credit union checking account. Prepaid credit cards, when used responsibly, can help build a solid credit history.

Build a Credit History with a Prepaid Credit Card

Some prepaid credit cards report account activity to the credit bureaus, which can help customers quickly build their credit history. Account information that influences a credit report might include timely payments of fees. It’s important to note that not all prepaid credit card companies provide account information to the credit reporting agencies. A prepaid card that reports to the credit bureaus, when used sensibly, can help build an excellent credit history.

Improve Credit Scores with Prepaid Credit Cards

Improve credit scores with prepaid credit cards. Credit scores are frequently updated based on information received from reporting companies. Following the terms and conditions of a prepaid credit card can help improve a credit history. If you have poor credit or no credit history, a prepaid credit card can help you get on the path to better credit. It can be emotionally stressful to be turned down for a credit card. Owning a prepaid credit card can help ease the pain and make shopping online and in person quicker and easier while improving a credit score.

Compare Prepaid Credit Cards Before You Apply

Before you apply for a prepaid credit card, read consumer reviews for credit cards. You can also compare prepaid credit cards online to get a better idea of what you’ll be getting before you apply. As with any credit card, there are unscrupulous companies that may try to con you when you apply for prepaid credit cards. Take the time to read consumer reviews and compare prepaid credit cards and avoid the hassle.





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How Prepaid Cards Make You Money

Monday, January 11th, 2010
Tom Tessin recently asked:


Many credit card companies have started using the cardholders as a part of their marketing plan by offering them the opportunity to earn cash back or referring a friend. There are several credit card companies that offer you a referral fee when you have someone sign up and start using the credit card. You should check out the different opportunities offered by these credit card companies. Many of the companies offer you a lifetime commission and tiered commissions. You are interested in earning money from your prepaid credit card check out where you are getting your card and the company that is offering you this card. You can contact them and find out if they have the marketing plan in place where they pay you to refer customers to the company. You should also find out what percentage they are offering as this can differ from company to company.

Many companies offer you rewards or cash back even if they do not offer you referral fees. You can earn cash rewards towards other purchases or point rewards to be used for the purchase of products that they designate in their catalog. These point rewards are valuable and can help you to get many things that you want without having to pay out cash money. The rewards programs can be used with airline miles and gas miles. You need to check out how your company handles their rewards and cash back programs. The opportunity to make money is just another way the credit card companies have to gain new customers but it can be your means of earning cash.

When you’re in the market to find the perfect prepaid card, there are a lot of things that you need to look out for to ensure you that you’re getting the card that works great for your wallet. Since prepaid cards may differ than regular cards, a credit card company may want to look into tagging on fees elsewhere so that they can make money off you.

This is why you need to look out for particular fees when you’re applying. Every application that you look at online will show you exactly what they are going to charge when it comes to fees. If there’s an annual fee, monthly fee or activation fee, I would recommend that you look elsewhere because there are so many cards on the market that are great that have next to no fees. You have to think about it this way and that if a card has a fee; you’re going to be paying money to hold a card in your wallet. Does this sound like it’s worth it? Absolutely not.

When it’s time to apply for a card, make sure you do your homework. There are so many resources online that enable you to find the card that you need. Look at the fees, look for the major logo and make sure that the card fits your needs when you want to put money on it. If you find yourself with a complicated card, you may be regretting it in the long haul.





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Why a Free Prepaid Card May Be Right for You

Wednesday, December 2nd, 2009
Adam Goldman recently asked:


There are many reasons why a free prepaid credit card may be the card for you. Perhaps you would like to teach your college kid good fiscal responsibility. Maybe you are having trouble obtaining a normal credit card due to poor credit score and would like to work on improving it.

A prepaid credit card has its fair share of advantages and disadvantages. In fact, they function more like debit cards, except there is no savings or checking account tied to the card. With a prepaid credit card, your credit limit is determined by the amount you pre-pay to the credit card company. Once the balance has been depleted, you will then be required to purchase more credit in order to continue using the card.

One of the greatest advantages of prepaid cards is the low application requirement, where a good credit score is unnecessary. In fact, you don’t even need to have a credit score, or even have an income to qualify. You just need to be at least 18 years of age.

Also, most prepaid credit cards do not impose APRs on the amount you have deposited with the credit card company. This makes sense, since you’re not actually obtaining credit from them. Another feature of prepaid credit cards is their ability to let you deposit your check directly onto the card balance. Not only will this save you trips to the bank, it’s also a great convenience if you’re the type who charges everything to the credit card.

While prepaid credit cards are generally a good bet, they are not without their downsides. Like regular credit cards, they may have fees attached to them such as a monthly maintenance fees, transaction fees and ATM fees. These are costs of using your prepaid credit card, and can be significant if you don’t choose the right card.

In conclusion, prepaid cards function truly well for those who do not wish to spend more than what they own, but at the same time require the convenience of a credit card. This way, you won’t get carried away with your expenses or find yourself drowning in debt.





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Additional Credit Card Options: Secured Cards, Debit Cards, And Prepaid Cards

Monday, November 9th, 2009
Attila Jancsina recently asked:


A secured credit card requires you to make a deposit into a savings account to obtain a credit limit. This deposit is held as a security for the amount you purchase using the card. In the event that you fail to make your payment for whatever reason, the deposit covers your payment.

Secured credit cards are good for those who have bad credit or no credit at all. It is a way to begin rebuilding your credit by demonstrating that you can make timely payments. From the creditor’s perspective, the deposit you pay decreases your credit risk, so the credit feels comfortable extending credit to you.

A debit card is directly linked to your checking account. When you use your debit card to make purchases, it is similar to using a check. The amount of the purchase will be deducted from your checking account within one to three days.

There are two kinds of debit cards: direct and deferred. A direct debit card requires a personal identification number (PIN) to be used when you make purchases. Purchases made with a direct debit card are subtracted from your checking account almost immediately. A deferred debit has a Visa or Mastercard logo and requires a signature for purchases. In many cases, both the direct and the deferred debit functions are present on the same account.

A prepaid credit card is a hybrid of the secured credit card and the debit card. With a prepaid credit card, you load a certain amount of money onto the credit card. Normally, this is anywhere between $10 and $1,500. The amount of money you load onto the account is the amount you are able to spend. Each time you spend money using a prepaid card, your available amount is reduced by the amount you have spent. For example, if you have $1,500 on your prepaid credit card and you spend $100, you then have $1400 available to spend.

One of the benefits of a prepaid credit card is that there is no interest rate on purchases you make. Since you are spending money that you’ve loaded onto the card, the card issuer has not extended credit to you. It is also easy to manage a prepaid card because you cannot spend more than you have put onto the card.

Prepaid credit cards also have their drawbacks in hefty fees charged for the credit card. Application fees, monthly maintenance charges, fees for adding and withdrawing money, and overdraft charges, are just a few of the charges that come along with using a prepaid card.

Each of these kinds of cards has their advantages and disadvantages. If you are shopping around for a card, weigh the pros and cons to make the best decision for your purchasing habits.





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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 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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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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Building Your Credit With a Prepaid Credit Card

Tuesday, September 8th, 2009
Tom Tessin recently asked:


One of the main reasons that some people get credit cards is simply based on the fact that they help build your credit history. We all know by now that if you don’t have a good credit score, you’re not going to be able to get a mortgage, car loan or even a personal loan. This is why it’s important to look for a card that reports to the three major credit bureaus. If it doesn’t, you won’t build credit.

Today, I’m going to show you how you can find a prepaid credit card that reports to the major credit bureaus. Remember that if it doesn’t, your prepaid card is going to be just like a gift card. The main reason people get a prepaid card is because it helps them with their spending. If you find yourself spending each and every month over your head, you may want to consider this type of card.

A prepaid card offers everything a regular card does. It will have a major brand, you can use it online and in the store and heck, 99% of the time, people don’t even know it’s a prepaid card. Now, you’re probably wondering how you can find one that reports. Well, this is actually pretty easy.

The way you can find a card is simply by looking at the application. A company will always boast when the card reports to the bureau. 99% of the time, they will tell you. This is a huge selling point and the companies know it. But if you’re looking at a card and it doesn’t say so, don’t worry because it may report, you never know. Just to make sure, call up the company themselves and ask. You will get a direct answer.

As long as you do your homework, you should be able to find the card that suits your needs. Find a card that reports and your credit history will be built up in no time. In the meantime, you’ll also be able to control your spending as well.

How can I control my spending?

Think of a gift card. Whenever you get a gift card, you get a card with a pre-set amount on the card. Once you spend that amount, you can’t use it anymore. The same works with a prepaid card. You can get money directly on your card. Once you spend that amount, you can’t use it anymore. So if you see a $100 pair of shoes and you only have $50 on your card, you won’t be able to use your card. If you think of it the other way, you can swipe your regular card until your arm falls off. But guess what?

When you get your bill at the end of the month, you’ll be surprised and this is what leads to debt.

Always make sure that you do your homework when it comes to prepaid cards. There are hundreds of cards out there. Look for the best one, make sure it reports and you’ll be using a card just like your regular ones.





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