What are Prepaid Credit Cards?

April 5th, 2010
Clint Jhonson recently asked:


Prepaid Credit Cards are similar to debit cards and to credit cards, but different from them. While a debit card will use the money from your checking account, a credit card will let you spend money you do not yet have in your account provided you will make monthly payments to return the amount used. Of course in the case of a credit card there is also an interest rate that applies to the amount you use. The Prepaid Credit Card is a card that takes money from an account that you open and where you put as much money as you want.

A Prepaid Credit Card is a good options for people who are denied a credit card or people who do not have yet a good enough credit to apply for a credit card. Prepaid Credit Cards can help you apply for a credit card, and they are better because debit cards because they are safer. If you want to get such a card you should know that there is a setup fee when you open the account and then there are fees you have to pay every time you recharge the account. So the first thing to do is select which bank you want to open the account with and which prepaid card you get. Generally you have to be at least 16 years old to be able to have a Prepaid Credit Card, but some banks offer them for children as young as 13. The truth is that the bank does not risk anything since you cannot spend more money that you have in the account.

Prepaid Credit Cards can be used almost anywhere you can use a credit card as long as you have money in the account. A prepaid card can be used successfully to book a flight or to reserve a hotel room. However if you plan to make monthly payments with a prepaid card you might not be able to do it because the company you have to pay too has no guarantee that there will be money in your Prepaid Credit Card when the payment is due. Even though it might seem like a bad deal, a prepaid card is better than a debit card because it is actually safer when you do any kind of transactions. A debit card for example uses money from your checking account and savings account, and these accounts are usually the same ones where your check comes in. Thus a lot of your personal information can be gotten by hackers, and while the credit cards had fraud protection the debit cards usually do not.

As with any type of card there are advantage and disadvantages in having them and using them. The best card to have is most probably a credit card even though a lot of times people get in debt and they cannot manage their payments. A debit card on the other hand is a card that doesn’t usually let you have a negative balance, but doesn’t help you build a good credit history either. A credit card that is a prepaid card is not a real credit card since you can only spend the money available in your account, but it can be a good card in case of emergency and it is a good way to teach your teenagers how to save and spend their savings and how to use the card in a responsible way. These types of credit cards are also similar to the secured credit cards and a lot of people think they are actually the same thing. If you do not necessarily want to have a credit card a prepaid one is a good option to have your funds secured and to be able to control your expenditures.





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Advantages and disadvantages of a prepaid credit card

April 2nd, 2010
sheena recently asked:


To a person with bad credit, the prepaid credit card seems to be their lifeline in the financial world as it is one of the few credit cards they are entitled to. This is because to get a card credit prepaid, there is no need of them going through an employment inspection or credit check.

As it is easy to get a prepaid credit card, you will have to deposit some money in your account to use it as your credit limit for using the card. In other words, with the card credit prepaid, you get to spend as much as you deposit in the account. And once your funds run low, you can deposit more money and thus make more purchases using the card.

Parents prefer card credit prepaid for their teens

Besides those with bad credit rating, the card credit prepaid is a great card option for teens, kids and students who don’t have a credit history. To the parent, this is the best card they can give their kids who require a card as thy can keep an eye on the amount of money that is spent via the card.

However as most prepaid cards have age restrictions, a parent usually has to activate the card first so that an under-aged child can use the card. This is because you have to be a minimum of 18 years to get a prepaid card.

Card credit prepaid cards are easy to qualify for

Applying for a card credit prepaid is rather easy; all you have to do is to apply online from any reputed company offering the card. On filling the form, you can choose the payment method you prefer like money order, bank wire transfer and personal checks.

Prepaid credit cards are best used in gas stations, online stores and grocery stores for any purchases you may have. Basically, card credit prepaid is similar to regular cards; the only difference lies in the fact that they are easier to qualify for.

No bills to pay with card credit prepaid

Moreover, they can be used worldwide and do not charge you interest like the interest regular cards charge. The reason you are not charged an interest for using the card is because you cannot spend more than the limit set by the card and the amount of money you deposit for the card. So with no interest charges, there are no bills for you to pay every month.

And in case your prepaid card expires, with balance money in the account, you can always transfer the balance from one card to another. However if you choose to do this, do make sure you do this after you read the terms and conditions of the different card companies

This is because different companies have different terms and conditions to be followed. So with the card credit prepaid card offering you so many benefits, and financial freedom, a person with bad credit rating still has something to look for in life!





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What is a Prepaid Credit Card

March 23rd, 2010
Steve Evans recently asked:


bly see them all the time at gas stations or advertised as a solution for people with bad credit. Prepaid credit cards act just like a regular credit card, except unlike a normal credit card there is no line of credit behind the plastic.

They are also known as Pay as you go cards. With a prepaid credit card you have a fixed amount of money you can use. Since there is no line of credit, you don’t have to worry about paying back any debt.

Credit cards are practically a necessity of life these days. When was the last time that you wrote a check. I’d wager that most of us just write one or two checks a year these days and the rest is done by card. It’s almost impossible to rent a car, reserve a hotel room, or make a large purchase without a credit card. Many businesses now require customers to have a credit card on file even if paying with cash or check. What can you do if you have bad credit or no credit?

As we said earlier prepaid credit cards are also known as “pay as you go” cards. They work in a similar way to traditional credit cards. The difference is that prepaid credit cards don’t involve borrowing money from the issuer. You preload the card with money and then use it wherever Visa or Mastercard are accepted. Late fees and interest charges are not applicable. Simply refill the card when the balance is low or depleted.

A prepaid card is much like the gift cards available from most high street chains in the UK, however, prepaid cards have a much wider acceptance, and can be used internationally. They are the same as credit cards, but without the credit. The majority of UK prepaid card providers offer cards embossed with your own name, and some are even CHIP & PIN cards.

A prepaid card is not a credit facility, so you do not need to pass a credit check. Even if you have bad credit or CCJs you are guaranteed to be approved for a prepaid card. However, you are still required to provide details verifying your identity and address (for example a passport, driving licence or national identity card plus a utility bill or an official letter with your permanent or temporary address). Some of the prepaid card issuers will even verify your details online, and give you an instant approval. By the way this is correctly called an electronic identity check, not a credit check!

A prepaid credit card such as a Visa or prepaid Master card can be used like any other credit card to make purchases. With a prepaid card, however, you load funds onto your card and use that money to make purchases and get cash — you are not borrowing money from a bank or other financial institution. The prepaid credit cards look, feel and work like a credit card but are pre-funded “stored-value” cards. This allows you to set spending limits for you or your kids.

So there you have your answer. It is a pre-paid, reloadable card can be used anywhere Visa or MasterCard is accepted — at stores, gas stations, restaurants, theaters, in the mall and online. Making a hotel and rental car reservation is a snap. You can also access cash at ATM\’s. The card is great for everyday purchases, special occasions, and emergency backup.



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Defining the Prepaid Credit Card

March 17th, 2010
Steve Evans recently asked:


ition of a prepaid credit card is: A payment card (usually MasterCard, Maestro, Visa Electron or Amex), pre-loaded with your own money, which you can then use wherever the payment card is accepted, including on the internet and abroad. A prepaid card is much like the gift cards available from most high street chains in the UK, however, prepaid cards have a much wider acceptance, and can be used internationally. They are the same as credit cards, but without the credit. The majority of UK prepaid card providers offer cards embossed with your own name, and some are even CHIP & PIN cards.

Whilst prepaid credit cards can be a very useful product for those with a good credit rating, many card providers target their prepaid products at those with bad or no credit history. With the number of IVA\’s (Individual Voluntary Arrangement) and bankruptcy cases on the increase, there is a growing population in the UK that are unable to get a traditional credit or debit card, without paying extremely high fees.

Considering what a credit card is, the term “prepaid credit card” can be a little misleading. With a prepaid credit card there is no credit being issued to the cardholder. Instead it works much like a checking account where the cardholder deposit funds into an account and as the card is used the funds are automatically withdrawn. Because having a prepaid credit card is similar to a checking account the benefits may not be obvious. Below are some reasons why a prepaid credit card can benefit you.

With the increasing threat of identity theft and the horrors stories one hears from friends or family members that have fallen victim a prepaid credit card can add a level of security by limiting the damage. You can keep your main bank accounts information safer by using a prepaid credit card for online, over the phone, and local market transactions.

A prepaid card works a lot like a gift card with little perks that make it so much better. And everyone is instantly approved.

Your Wired Plastic prepaid card works wherever a visas or master cards are accepted, even gas pumps. With your wired plastic prepaid card you earn points for every dollar that you spend on your card just like you do with other credit cards. Just load, and reload your card as needed.

Many people are concerned that fees must be paid for prepaid credit card fees and these may be excessive.

Use of one prepaid card we heard of recently is subject to a charge, of 2.00 for every ATM withdrawal, 1.00 for every signature purchase and 2.00 for every PIN purchase. Also, they charge 1.00 for all online purchases. The alternative to these charges is to pay a monthly fee.

Of course, instead of buying a pre-paid credit card, you could open up a bank account. That way, you would at least get a debit card linked to your account.

So if you do not want to pay those sorts of charges you can drop that card right now. Take your money and go to a bank like Wells Fargo or WAMU and open a secured Credit Card. You\’ll have to put your money down right then and there (typical minimum is $300) into a locked account. They will then open a Credit Card for you with a maximum of that amount.

A prepaid credit card will act just like a credit card. Online shopping, swiping at the gas pump, and all those other credit items will work fine, so for many with no credit rating there is no real choice but this type of card transaction.

If you have no credit or bad credit then this is what you have to deal with for a while. The fees we have described are not too out off the normal, but they can add up. Do you best to pay the bill on time every month and don\’t max out the prepaid card or you’ll go hungry! In about 6 months you can apply for a better card and stop using that one. By the way to do best at raising your credit rating don\’t close a card account. Just leave it open. The more you open and close cards it looks bad to the credit rating system.



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7 Tips To Buy Prepaid Phone Cards

February 28th, 2010
Euro Calling Cards recently asked:


Looking around to buy a phone card or calling card is not an easy thing and moreover is confusing. There are so many providers and calling card companies that advertise rates as low as 1 cent/minute and other such wonderful rates, and on top of that there is a wide range of choice of different calling cards. Here are the basic 7 Tips to make your choice easy.

Do not go just by the advertisement - When you start searching for a calling card, you will see advertisements of calling cards with calling rates as low as 1 cent/minute to various destinations around the world. Be cautious and make sure if it is really true. Check the connection fee - Always look at the “more information” or “term and conditions” links on websites to see what the other charges there are. One of the most common charges is a connection or disconnection charge. Check for other hidden charges - Few calling cards has hidden charges such as surcharge, hang-up fee, or maintenance fees. Be aware of these charges before you buy the card. Billing increments calculations - The billing increments is the time scale you are billed at when you make calls. The best increment to get is second increment or a minute increment. If you have a phone card that offers 3 minute billing, and you use only 1 minute on a call then you will still be billed for 3 minutes. Calling card expiry - Some calling cards will have an expiry date on it, so once you have passed that date the calling card is dead and it cannot be used anymore. Try to look for a card that never expires, so you can use your minutes when you want to. Look for additional features - The sign of a good phone card is one that offers other features apart from just the usual calling service. These features could include online account management, speed dial, voicemail, etc. If a provider has taken the time to add these services, it can often be a sign they have been in business for long and value their customer and they can provide a good customer service. Customer support email - If you see a phone card you like, you can try sending an email to the address they provide on the card or on their website to check how quick they respond to the customer queries.



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Why Many People Will Need a Prepaid Credit Card During This Recession

February 10th, 2010
Steve Evans recently asked:


rds are a part of daily life these days. For each of us to establish a good credit rating is very important for many reasons from getting finance to getting a job.

Prepaid credit cards are a way for someone who cannot get a traditional credit card to build credit. The classic case here is the person who has declared themselves bankrupt. Once anyone does that their credit rating is reduced to zero and people describe that as having a bad credit rating, or just bad credit.

This is where a prepaid credit card can be a life saver.

There are some pros and cons to prepaid credit cards, so shopping around and being informed is important when getting one. A prepaid credit card will help build credit without the risk of falling into debt and hurting your credit rating even further.

A prepaid credit card is basically like any other credit card. It is backed by one of the major credit card companies. Prepaid credit cards, though, are completely controlled by the user. The account for the card is opened with a deposit that is then the credit limit. Whenever the user desires more money can be added. Only the amount of money that is in the account can be spent. If the user tries to spend more than their limit the card will be denied.

Walmart and Walgreens provide prepaid credit cards but there are many others. You load the card with an amount of money. Then you re-load it every time you need to use it.

Prepaid credit cards are really becoming popular because they are convenient and allow you to better budget your money than a regular credit card.

Charges vary from card to card, but it’s always best to compare fees before deciding which prepaid card is best for you. You can also find links on the above site to purchase prepaid cards.

Pre-paid credit cards are credit cards in which the owner of the card deposits funds with the credit card issuer to be accessed via the card. This is in contrast to a traditional credit card in which the credit card issuer gives the user a card without receiving any money in advance.

The merchant uses their standard procedure for accepting credit cards of any type. This often involves swiping the card through a terminal. In this case, the terminal is connected to a network that allows the card to be approved or declined. In the case of a pre-paid card, the amount of the purchase is compared to the amount of funds remaining from the original deposit. If there are sufficient funds available, then the transaction is approved. The amount of the purchase is deducted from the funds that were originally deposited with the credit card issuer and the remaining funds become the card\’s new balance.

Any government agency can deposit unemployment benefits, child support payments, etc. directly into a prepaid card, as your employer can do. You might be able to put money in it by yourself. The money can be used right away and the amount you spend or withdraw is deducted from it immediately. Just like debit cards, prepaid cards have a personal identification number.

There\’s nothing simpler. You pay up front. When the card runs out, you refill it. Use it like a credit card, but no bill at the end of the month, only a statement showing what you\’ve spent. That\’s why it\’s prepaid.

All you do is to decide how much to put on your prepaid credit card - and deposit that amount on the card, as you would into a bank account.



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Prepaid Cards - Let’s Get Started

February 7th, 2010
WhichWayToPay recently asked:


 Top it up and go – it’s as easy as that with a Prepaid card. Much like you’d top up a mobile phone (or Oyster card if you’re a Londoner), what you load on the card is what you spend. Once you’ve run out, you just top it up again. It looks more like a credit card than a travel card though, with magnetic strip, credit card provider and Chip and PIN. But the beauty of the Prepaid card is that you don’t need to have an excellent credit history to qualify. With most issuers, you don’t need any credit history – this is because there is no risk as far as they are concerned, because the user can’t get caught in repayments and bills. That’s because there aren’t any! Any fees or transaction charges are deducted from the card so users need to make sure that they have enough funds loaded on the card to cover these too.

A Prepaid card is a much safer way of carrying money around as it’s all in one place and if you lose or have the card stolen, you can cancel it. It’s also a great way of sharing money as you can get a second card which can be handed to friends or family so that they can access the funds. For this reason, some Prepaid cards are aimed at parents wanting to keep tabs on the spending habits of their teenage offspring – look out for those issuers who allow a lower minimum age of 16. Other cards are aimed at foreign workers in the UK who want loved ones back home to receive their earnings. There are so many types and offers, it’s worth shopping around before making a choice. Just go to a financial comparison site to lay out all the options in one place, and most sites will let you access the provider directly once you have made your choice.





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Secured Credit Cards

January 26th, 2010
The CreditLawGroup recently asked:


What is a secured credit card and how does it differ from regular credit cards and prepaid cards?

A secured credit card is an option for a person to build or rebuild his or her credit. Furthermore, a secured credit card provides the opportunity for consumers to gain access to certain services such as renting a car or hotel room. Secured credit cards differ from traditional credit cards in that a deposit is required to serve as the consumer’s credit line whereas with traditional credit cards, the consumer’s credit line is collateral free and based partly upon their credit and payment history. Secured credit cards differ from prepaid credit cards as well.  With prepaid cards, there is no required credit history check and the consumer’s credit line is limited to what the consumer has previously paid, or loaded, on the credit card. On the other hand, a secured credit card requires its user to open a savings account which will serve as his or her credit line. The consumer will then continue utilizing the secured credit card as a traditional credit card; in the event the secured credit card user defaults on his or her credit card payment, the user’s savings account will be used as collateral. 

What are the benefits of a secured credit card?

-  Access to a credit card = Obtaining a secured credit card may benefit some people who have a tarnished credit history and therefore, have been denied by traditional credit card providers such as Visa®, MasterCard®, and American Express®. By gaining access to a secured credit card, a consumer has a whole variety of purchasing opportunities available to him or her, such as making online purchases, reservations, and features such as automatic bill pay.

- Improve your credit history= Once a secured credit card has been procured, a consumer now has the opportunity to make consistent, on-time payments. Just as important as making timely, in full payments, it is imperative to confirm with the secured credit card provider, prior to opening the secured credit card, that it reports to the 3 major credit bureaus (Equifax, Experian, and TransUnion) and that it does not mark the reports as a secured credit card. Having the secured credit card provider report positive payments to the bureaus without flagging the reports as a secured credit card is the main way that secured credit cards can improve your credit history and probably improve your credit score.

- Save and or earn money= A secured credit card requires its users to open a savings account that serves as collateral in the event the user defaults on his or her payments. If the user makes timely and consistent payments on his or her secured credit card, this savings account will not and cannot be touched. This is beneficial to the user because for the time that their secured credit card account is open and in good standing they will be saving the money. Furthermore, more than likely the money in that savings account will be earning interest, a net gain.

What are the disadvantages of a secured credit card?

-  Upfront costs= In order to obtain a secured credit card, one must open a savings account to serve as collateral in case the user defaults on his or her payments. Therefore, funds are required to be available prior to procuring a secured credit card. The amount of money that is required depends on the bank or credit union with which the savings account is opened and the amount of money the secured credit card provider requires to be in the savings account. Additionally, some secured credit card providers have application fees.

-  Hidden fees= While secured credit cards offer many benefits, there are fees associated with the usage of secured credit cards such as annual fees. Moreover, secured credit cards almost always have much higher interest rates than traditional credit cards, and thus, it is suggested to utilize them only for as long as needed or until one’s credit has improved. Additionally, some secured credit card providers hold on to the funds in the user’s savings account for a designated period of time after the secured credit card has been cancelled to safeguard themselves against any possible lingering charges. Therefore, it is extremely important to shop around numerous providers for a secured credit card.

- Hinder your credit history= Although secured credit cards may be beneficial to some people, if a user defaults on payments, especially past the amount being held as collateral in his or her savings account, it can tarnish their credit history and consequently lower his or her credit score.

In summary, secured credit cards may be very beneficial to its users by opening doors to new purchasing opportunities, improving credit histories, and saving and/or earning money if used appropriately. However, if a user cannot meet the payments of what they charge on the secured credit card, he or she may be worse off than in the beginning. Finally, if a consumer has decided to use a secured credit card it is imperative to shop around for the best deal, including but not limited to: non-flagged reporting to the 3 major credit bureaus, lower interest rates, lower annual fees, and inexpensive or no application fees.

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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Benefits of Online Phone Cards

January 22nd, 2010
Euro Calling Cards recently asked:


The sales of online phone cards are increasing day-by-day. Now, calling a friend or to make an international call has been made so easy, that you can use any phone and make an international call – be it your cell phone, your office phone, your neighbor’s phone or a telephone booth. Use any phone and the phone card and you can make calls.

The basic benefits of these phone cards are

You do not have to switch your long distance carrier. You can purchase the best phone card that suits your need and use it. You receive ease of mobility. You can use your cell phone and the phone card to make the international calls. If you are a frequent traveler, carrying phone cards is much economical to make calls. You have a wide range of phone cards available to choose from. Check the best ones and go ahead buy them online. You get the PIN instantaneously and you can start calling immediately. Payments are accepted online. You have the ability to auto-recharge the card, when the card balance reaches certain amount or minutes. So, you do not have to buy again and again to recharge your card. Moreover, auto-recharge mostly comes with certain discounts or added features. Certain phone cards providers also provide PINLESS dialing. Which is much easy to use.

If you are buying these prepaid cards for the first time, then you need to closely make comparisons on each calling card providers’ services by clearly and properly understanding the fine print that is provided along with the calling card, and make decisions on which one are the best ones that suits your needs and requirements.





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How to Select a Good Prepaid Phone Calling Card for Your Long-distance Calling Need

January 20th, 2010
Euro Calling Cards recently asked:


International phone calling cards and long-distance prepaid phone cards have become more important than beneficial to us. These plastic cards can makes us easy and simple to contact our family and friends, especially if we are very far from them in a different country. One does not need to carry a mobile phone or search for a service provider for the SIM. These prepaid calling cards can be utilized from any standard landline, mobile phone and pay phone, to quickly make calls anytime and anywhere. And there are no anxious moments for hefty or wrong bills. You will know the call charges as soon as you have completed the call.

If you are buying these prepaid cards for the first time, then you need to closely make comparisons on each calling card providers’ services by clearly and properly understanding the fine print that is provided along with the calling card, and make decisions on which one are the best ones that suits your needs and requirements.

Compare Each Calling Card’s Connection Fees

Prior to buying a calling card, find out if there is a connection fee being charged. These fees are generally charged every time you make a successful call using that calling card. Successful call here also includes connecting to a voice mail, answering machine or pager. These types of fees generally vary between different calling card providers, and if you generally use the calling card to make short-distance calls then you may end up paying more as connection fees rather than the cost of actual call made. For consumers who make only short calls on a regular basis, be sure to check the ‘per minute rate’ and the connection fee to ensure that these would not be too excessive, as it would be no good paying low per minute rates and higher connection fees for a quick call. There’s usually a trade-off between per-call charges (connection fee) and per-minute charges. The higher the per-call charge is, the lower the per-minute charge usually is. If you make a lot of long calls, go with the higher per-call rate. If you make short calls, the higher per-minute cards are probably better for you. Presently, many prepaid phone cards providers have cheaper per minute charges, however have high connection fees.

Learn More About Rechargeable Cards And Expiry Dates

Prepaid phone calling cards do expire after a certain period. Check for the expiry dates provided by the calling cards providers. The usual expiration dates range from 3 to 6 months from the date of purchase or from the initial use of the calling card. If the calling card expires with a considerable amount of time as credit, you will surely lose that out after the expiry date. Some prepaid calling cards are rechargeable, and all you need to do is to simply add more minutes by contacting the calling card provider’s toll-free hotline numbers or support numbers.

Gain Valuable Product Info Before Buying One

It is needless to say that considering only the above two points can help you find a good calling card. You need to also clarify if these prepaid calling card communication devices can offer high-quality connections and are easy to of use. Search on internet for the reviews of providers. You can also contact their customer support for questions or concerns regarding the quality of the phone calling card and judge from their response and feedback.

Get Cheap Calling Cards





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