Can I compare prepaid credit cards?

Sure! Prepaid credit cards, like any other banking services are offered by a wide variety of vendors. It is always a good idea to use compare the credit options available.

You can use a free credit card finder right here!

The rates, terms, and conditions of each card may be different and consumers should read all disclosure agreements carefully before accepting and using any credit card. You can find the most competitive online credit card offers in your area on this website.

What is a prepaid credit card?

A prepaid credit card is usually a Visa or MasterCard or an American Express logo card, issued by a bank that has collected funds from the cardholder in advance, sufficient to cover the full “credit limit” approved by the issuing agent or bank.

Are prepaid credit cards popular?

Prepaid credit cards are becoming more and more popular, as many consumers hard hit by the recent U.S. economic downturn, have had difficulty maintaining their credit ratings. Many consumers have been forced to close their existing credit card accounts. Others may have been turned down when applying for additional credit. First time applicants are also often declined. A credit card has become a necessary tool for most American consumers; hence, the invention of prepaid credit cards!

What are the benefits of prepaid credit cards?

These cards are secured credit accounts, the easiest credit card to obtain. Prepaid cards offer the cardholder the additional security that cash doesn’t offer. The loss of a card doesn’t mean you’ve lost your money. Like their regular MasterCard, Visa and American Express counterparts, prepaid cards protect users against fraudulent or other unauthorized use.

Prepaid cards may be used for online purchases just like any credit or bank debit card.

Since a prepaid credit card is secured, you won’t be turned down. It will help you build or rebuild your all-important credit history.

They also can save you money. Regular credit cards will charge interest at the rate of 10, 15, 20, 25 or 30% or more. Prepaid cards charge only nominal fees for their set-up and use.

Prepaid cards may also help to reduce or eliminate debt. In essence, the cardholder spends money he or she has already saved for securing the credit card. The cardholder will no longer run up credit balances that can get out of hand and be difficult to pay back.

What are the fees for prepaid cards?

Many card issuers offer their prepaid cards for free. Some may charge a small up-front fee. Others may charge a per transaction fee of one or two dollars when a card is used at a bank or ATM for cash withdrawals.

Purchases made with prepaid cards are most often free of charge. Monthly interest charges are avoided altogether since you are not borrowing money to make your purchases. The bank already has your money! You can choose from a variety of prepaid online credit cards.

What happens when the prepaid credit card runs out?

When the card runs out, most banks have easy and convenient on-line tools to help you add funds or “re-load” the card. These cards have become just as popular and convenient as prepaid cell phones. If you run out of minutes, you just buy more.

The same rule applies to prepaid credit cards. When the card runs low, you have the ability to transfer funds from any existing bank account to your prepaid credit card.

Some card companies maintain card minimums or impose maximum spending limits. Other companies do not set any card limits. This is an important factor when comparison-shopping!

What if I don’t have a computer or handy Internet access?

There are still plenty of banks that enjoy doing business face-to-face! Prepaid cards can also be purchased and maintained in person at a variety of area service businesses such as the local Automobile Club (AAA).

Why would I want a prepaid credit card if I have good credit?

There are several good reasons that more and more consumers are turning to prepaid credit cards as alternatives to more traditional credit accounts:

Prepaid cards help families maintain budgets. Suze Orman offers great advice on how to create budgets to take control of your finances.

Prepaid cards give parents the opportunity to teach their children about credit while monitoring and controlling their spending and usage. They can be used by businesses to help regulate employees’ outside travel expenses. Most importantly, prepaid credit cards help consumers save money!

To find the best online credit card deals in your area use the free tool now!