Prepaid cards or debit cards offer instant approval even to those with bad credit history. Nevertheless, despite the easy application process, those who want to get a prepaid credit or debit card must spend some time doing research and comparison. What are the factors that you should consider to find the best prepaid card?
Protection Against Unauthorized Use. Aside from a PIN code, your issuer must also provide you with a security code that you can use for transactions where the actual debit card is not presented such as online or over-the-phone payments.
Online Account Access. Online banking is an indispensable feature for monitoring your account, sending payments, or making money transfers using the internet.
Reward Options. Some prepaid debit cards offer reward programs that may complement your lifestyle or spending style. Check out the different prepaid debit card reward programs available in the market and consider if there is one that’s right for you.
Reasonable Costs. Although you don’t have to worry about interest rates or late penalty fees, you want to make sure that your prepaid card does not charge you with hidden costs or expensive transaction charges.
Accepted ANYWHERE. It is strongly recommended to choose prepaid debit cards that is supported by a major credit card network such as VISA, MasterCard or American Express. This way, you can be sure that you can use your prepaid card for payment at any merchant or establishment that accepts VISA, MasterCard or American Express cards.
Credit Reporting. Take note that not all prepaid card issuer provide credit reporting service. Ask your issuer if your payments will be reported to the major credit bureaus (TransUnion, Equifax, Experian) as that is the only way you can use a prepaid debit card to build credit history. Otherwise, you can be using your prepaid card to pay most of your bills but none of your payments will be included in your credit report.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!