Article Sphere Logo

Do You Really Want a Prepaid Credit Card?

By Expert Author: Max Anderson | Article Abstract
Word Count: 439 words | Views: 23 view(s)
Think you want a prepaid credit card? You might want to think twice. Those who decide to purchase these cards often do so for the wrong reasons. While prepaid cards definitely have their time and place, make sure you're buying yours for the right reasons. Here are three things you need to ask yourself before you spend a dime...

1. Why Do You Need It?

The first thing you need to ask yourself when applying for a prepaid credit card is why you need it. Is it because you don't have good enough credit to qualify for a traditional card? If that's the case, you might want to try a secured card instead.

While a prepaid credit card will help you make credit card purchases, they can't help rebuild your credit. The companies that issue these cards don't report your information to the credit bureaus. This means that no matter how long you use it or how good you are with it, it's never going to help you get a real credit card.

2. Would a Secured Card Be Better?

Secured credit cards and prepaid credit cards are very similar in some ways. With a secured card, you pay a security deposit (which goes into a savings account) and then use the card just like a traditional credit card. With a prepaid card, you pay a specific amount of money (which is applied to the card) and then use the card for purchases up to the amount you deposited.

If you don't want the hassle of monthly statements and don't need to build your credit rating up, a prepaid credit card will work well. If, however, you need to improve your credit rating and want a card that works just like an unsecured card, a secured card is the better bet.

3. Do You Understand All of the Costs?

The term "free prepaid credit card" is an oxymoron. No prepaid credit cards are really free. If you want one of these cards you're going to have to pay for it. Even if you don't have to pay an initial "activation" or "processing" fee you're going to have to pay transaction fees or monthly maintenance fees. The question is, how much are you going to pay?

Before you purchase any prepaid credit card, make sure you understand all of the fees and costs involved. Read the terms of service very closely. These hidden fees can usually be found in the fine print.

Not all credit situations are created equal, and neither are all credit cards. Before you sign up for a prepaid credit card, keep the above three tips in mind and make sure it's really the way to go.
Max Anderson

About the Author/Author Bio

For more tips on prepaid credit cards, saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources.

Article Source: http://www.articlesphere.com/Article/Do-You-Really-Want-a-Prepaid-Credit-Card-/119652

Article Submitted: 2008-01-07 | This Article has been viewed 23 times.

Rate Article

More "Credit Cards" Related Articles

 
 

Listed below are more articles related to the above article from the "Credit Cards" article category.

People interested in the above article "Do You Really Want a Prepaid Credit Card?" are also interested in the related articles listed below:

 
There are plenty of credit cards out there for those looking into getting one, but how do you decide which one to get? Low annual fee credit cards are just one type of credit card that you can get from virtually any credit card provider in the Australian credit card market. But what is it? How does it work and how woul done be of benefit to you? Read this article now and find out!
Are you trying to choose a credit card, but are struggling with all the choices? When it comes to choosing a credit card, there are certain things you need to look out for in order to make sure you're getting the right credit card for you. Take a look at our checklist below to see what information you should be seeking when you begin your credit card search.
You must have heard people say - 'I got a good credit card deal'. So if you happen to be looking for a credit card at that moment, do you just go with what your friend has told you as a good credit card deal? Let's check what one can term as a good credit card deal. A credit card deal is good if it works for you. So, if the credit card fits into your lifestyle in a way that rakes in maximum benefits for you, that is a good credit card deal.
"We accept credit cards" is a statement that you must have come across multiple times at various shops, grocery stores and other merchant outlets. This statement is generally accompanied by a few stickers (Visa/Master card etc). Credit cards have transformed the businesses and our lives to a great extent.
Well, you don't really need to look into the teen credit card debt statistics to tell what's going on. The teen credit card debt statistics would probably look very similar to any other. I think I read somewhere about teen credit card debt statistics and those teen credit card debt statistics indicated that a lot of teens in US had a significant amount of balance on their credit cards; something which they shouldn't have (considering their limited needs for credit).
For students, the student credit cards are the best way to enter the fascinating world of credit cards. Student credit cards help the students in taking advantage of the various benefits associated with credit cards in general e.g. convenience, safety, rebates etc., much earlier in their life.
Just browse through the daily newspaper and you will be overwhelmed by the number of credit card offers advertised. Move around the town and you will find credit card offers being advertised everywhere. Same is the case is with television which seems to host a number of credit card offers too. So, the credit card offers are there everywhere. Why are there so many credit card offers? Well, quite simply because credit card business is a highly profitable business for the credit card suppliers.
 
Article Directory Home All Categories Finance Credit Cards
 

Can't find what you're looking for? Try Google Search!
 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.

Afrikaans Albanian Arabic Belarusian Bulgarian Catalan Chinese (Simplified) Chinese (Traditional) Croatian Czech Danish German English Estonian Filipino Finnish French Galician Greek Hebrew Hindi Hungarian Icelandic Indonesian Irish Italiano Japanese Korean Latvian Lithuanian Macedonian Malay Maltese Dutch Norwegian Persian Polish Portuguese Romanian Russian Serbian Slovak Slovenian Spanish Swahili Swedish Thai Turkish Ukrainian Vietnamese Welsh Yiddish