Prepaid Credit Cards Off Risk Free Convenience

In order to return people with credit problems to mainstream financial freedom, many companies are offering prepaid credit cards to help them take advantage of the options available to credit card holders. Many banks offer a branded gift cards, which work much the same way as a prepaid credit card, but have other restrictions and costs.

Many of the prepaid credit cards have fees associated with them that may rival fees for credit cards issued to applicants with low credit scores. The advantages is in having a branded credit card accepted the world over with the same benefits as a traditional card. Many banks also issue a debit card branded by Visa or MasterCard, but as a debit card it may not be accepted at some locations or merchants. Even bank issued gift cards resembling a credit card, may not be accepted everywhere.

With prepaid credit cards you can be assured of acceptance and there is no interest charged on purchases made, however the fees for certain transactions can be high. Be cautious with your decision on which prepaid credit cards to sign up with and on a few of them you need to be positive before getting them as they have a cancellation fee associated with closing the account. Most also have a monthly service fee, which you will have to compute into the total cost of carrying the card.

Convenience Of Carrying Card Can Be Costly

For example, one of the best deals found for prepaid credit cards is for a All Access Prepaid Visa, which requires a minimum opening balance of only $9.95. Most online transactions and inquiries are performed at no charge. Taking cash out through an Automated Teller costs $2 and an ATM balance inquiry is fifty cents, free if done online. It has a monthly maintenance fee of $9.95. If the card is lost, there is $5.95 replacement fee as well as a $5.95 charge for inactive accounts.

Western Union offers prepaid credit cards branded by MasterCard with a $5 minimum opening balance and no application fee. ATM withdrawals are $4.95 and transferring money from a bank account to the card costs $3.95, however direct deposit of paychecks to the card are done free of charge. There are several other charges associated with this particular card, but the benefits of having the convenience of a credit card are seen as worth the price by some holders.

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