Would you like to rent a car using your prepaid debit cards?  Generally, many car rental companies only accept credit card for payment.  But as more and more consumers prefer to pay with their debit cards, some car rental companies are willing to accept this method of payment.  Nevertheless, you need to be smart about it.

Below are practical tips and how to use a debit card for renting a car:

1. Check the car rental company’s policy. You can check the policy of different rent-a-car companies by checking out their website or calling the customer service number.  While some companies may strictly require a credit card, some companies may have more relaxed policies with regards to payments.

2. Be prepared to wait in line. Paying with a credit card gives you the option to pay online.  However, if you want to pay with a debit card, the car rental company may require more proof to verify your credibility.

3. Ask if you can pay with your credit card. Despite what is stipulated in the policy, some car rental companies may also accept debit card payment, if you make request.  Thus, it is always worth the effort to ask if you can use your debit card.

4. Be aware of “holds” and “blocks”. A lot of merchant impose a “hold” or a “block” to the cardholder’s checking or savings account to ensure payment.  Thus, aside from the cost of the rental service, you may need to reserve extra funds in your account which will be “frozen” or put on “hold” for 1 day to 14 days, depending on the company.

5. Make sure your debit card is compatible. Some merchants only accept debit cards with Visa or MasterCard logos.  If your debit card has different logo, you may want to check first with your prospective rent-a-car company if they accept such type of debit card.

6. See to it that you have good credit. Some people may not get approved for a regular credit card because of a poor credit history.  For this reason, rental-a-car companies do a credit check before accepting a transaction.  Take note that each time an inquiry is made in your credit report, it will also show up in your file.  Too many inquiries can send out a negative impression to prospective creditors.   Hence, if you are aware that you have bad credit, you may choose to pay in cash instead of using your debit card.

7. Prepare proofs of ID. Some rental car companies may ask to see proofs of identification such as auto insurance documents or recent utility bills.  The name that appears on these documentations must be the exact name that appears on your debit card as well.

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!

What’s great about debit cards is that you can use them like a credit card without the risk of debt build-up.  Nevertheless, using a debit card indiscreetly can still get you into trouble.  In this article, let’s talk about ten best tips on how you can use your debit card in the most advantageous way:

1. Put your personal spending in check. Although you can only use your debit card if you have an available balance, there is still the tendency to spend your funds on unimportant purchases.  If you’re having trouble controlling your spending, avoid saving a large amount of cash in your debit account.

2. Monitor your purchases. To keep track of your spending, make it a habit to write down each purchase or each transaction you pay with your debit card.  Keeping a record of your transactions can help you manage your debit account more effectively.

3. Avoid overdraft fees. Although exceeding your limit is not allowed, there may be instances when your purchase is accepted even it exceeds your available balance.  However, you will be charged with an overdraft fee which can cost $30 or more.  Avoid such fees by checking your account first before making a purchase.

4. Look out for “holds”. Some hotels and rent-a-car companies may hold some of your available funds in exchange for a reservation.  In this case, you want to make sure that you understand the exact “hold” amount and how long it would be held by the merchant.  Better yet, you may consider using a credit card or paying the bill in full with your debit card.

5. Choose a strong PIN code. A recommended PIN code is a random combination of digits that has nothing to do with your personal information such as your birthday or anyone in your family’s birthday or your wedding date.

6. Check your account often. Be sure to check your debit account online regularly especially after making a purchase.  Check the exact fees that you incurred from the transaction.  The Federal Law protects debit cardholders from fraudulent transactions but only up to $50 and you need to inform your bank within two days after the transaction was made.

7. Do not link to your savings accounts. To be safe from fraud, it’s best not to link your debit account to your savings account.

8. Do not use your debit card for large purchases. If you plan to make a large purchase online, don’t charge it on your debit card.  Keep in mind that debit cards offer only a limited protection so you may not get much help in case there is a problem with your purchase.  Instead, use a credit card that offers a Fraud Liability Protection so you can have the option to dispute charges should you need to.

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!

It doesn’t really matter if you already own a credit card or not. Having a debit card in your wallet can come in handy at any time. What benefits can you expect from a prepaid debit card? Here are 8 benefits to think about:

1. You can set your own spending limit. With a credit card, it can be a little difficult to control spending because you have the option to purchase in advance and pay at a later date. With a debit card, that’s just not possible. If you want to limit your spending, deposit only the amount you plan to spend for the entire month. This way, you can be more in control of your budget.

2. Safer for travels and shopping around. Why carry a large amount of cash in your wallet when you can bring a prepaid debit card instead? Just like credit cards, debit cards offer protection against lost. In case your card gets stolen, you can call your issuer to have your account blocked against unauthorized transactions. Your debit card will be replaced with a brand new card number.

3. Avoid bad debt. Debit transactions are automatically paid the moment the purchase was made. If you don’t have an existing balance in your debit account, you will not be able to make any purchase. Thus, it eliminates the risk of bad debt.

4. No credit check. You don’t need to have a perfect credit history to get a prepaid debit card. Just like department store cards and gas station cards, credit check is not a requirement. Even with no credit or poor credit, you can easily get one.

5. No monthly bills. No bills will come your way, no payment due dates, no late penalty charges, and no interest rates. Imagine how stressful it must be to be worrying about all these.

6. Withdraw cash from any ATM at any time. Prepaid debit cards are also great during times of emergencies when you need to cash. For parents who need to send money to their college kids on a regular basis, a debit card is the faster, safer, more convenient and cheaper way to do that.

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7. Can be used locally and internationally. If you travel to different countries, choose a prepaid debit card with a Visa or MasterCard logo. This way, you can be sure that your card will be accepted at leading merchants worldwide.

8. Build credit history. The newest prepaid debit cards in the market today offer credit reporting to the major credit bureaus (Experian, Equifax, TransUnion). Those who want to establish credit or rebuild bad credit can get a debit card without worrying about getting rejected.

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!

As the number of cardholders who default on their payments increases, credit card companies have come up with ways on how to service the bad credit market.  How?  By offering secured credit cards and prepaid debit cards to people with bad credit history.

What Are Prepaid Debit Cards?

A prepaid debit card is a mode of payment which can be acquired by people with bad credit.  If you can’t get a regular credit card that requires good or excellent credit history, then a debit card is made for you.

You can use a debit card just like a credit card.  However, you must first submit a cash deposit to your account before using it for payment.  The amount of deposit you have in your account also determines how much you can charge to your debit card.  Once you have reached zero balance, you must make a new cash deposit to your account.  What are the pros and cons of a prepaid debit card?

The Pros of Using A Prepaid Debit Cards

Cashless shopping. Instead of bringing along a significant amount of cash when buying your groceries or strolling at malls, you can simply bring your prepaid debit card for safety and ease.

Convenient for travels. Travelers can also enjoy the convenience of using a prepaid debit card instead of paying with cash or checks.  Prepaid debit cards with Mastercard, American Express and Visa logos are accepted wherever credit card payment is available so you can take it anywhere you go.

No need to worry about repayment. Once you charge a bill to your debit card, it will be instantly paid off using the money you deposited.  With a prepaid card, you don’t have to think about payment due dates, interest rates or late penalty charges.

Anyone can get a debit card. Applying for a prepaid card is so easy and you are automatically granted an approval regardless of your credit history.

Avoid the risk of bad debt. With a prepaid card, unplanned purchases can be avoided since you can’t use it if you don’t have existing funds in your account.

The Cons of Using A Prepaid Debit Cards

Per Transaction Fees. Prepaid debit cardholders must remember that there is an additional fee for every transaction.  To cut back on costs, plan your purchases ahead of time so you can pay for all your purchases at once.

No credit line. Some people dislike prepaid debit cards because they can’t borrow against their credit.  However, if you take a look at the advantages, you will see that owning a prepaid debit card is worth it.

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!

One way to make the most out of your credit card is to take advantage of its zero interest rate offer.  Usually the 0% APR applies to balance transfers which means you can pay off the balances you’ve transferred without the interest rate for the entire introductory period.  The introductory period may last from 6 months to 12 months, so you can imagine how much you can save by not paying any interest.

How Balance Transfer Cards Can Help

Balance transfers are great if you have outstanding balances from other credit cards with high interest rates.  By transferring over your outstanding balances to a 0% APR card, you can work on paying off only the original amount of your debts.

However, transferring balances must be done with great care.  First of all, you want to make sure that you have chosen the right balance transfer card.  See to it that it does not impose unreasonable costs or an unfair interest rate for new purchases.  Make sure that the regular APR will still be reasonable when the introductory period ends.

It is very important for you to pay off all the balances you transferred within the zero-interest period.  Also, be sure to submit your payments on time to avoid being penalized with late fees which can be higher than what regular credit cards impose.

Terms and Conditions

After shopping around, spend extra time analyzing the Terms & Conditions of your chosen balance transfer card.  Some credit cards may require at least 2 to 4 weeks of processing the balance transfers so you want to make sure that you are still submitting payments to your old card to avoid late penalty fees.

Once your balance transfer has been completed, you should receive a notice from your balance transfer credit card issuer.  You can also call the issuer to follow up the status of your balance transfer.  Request for an update billing statement from your old credit cards to make sure that you don’t have any outstanding balance left in that account.

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!

Credit cards are certainly the most convenient way to pay for bills and purchases.  However, with the interest rates and fees ever increasing, consumers need to be very cautious in choosing their cards.  Add to this, they need to be more aware of the exact costs their credit cards impose and their best to avoid unnecessary charges.  Let’s discuss the underlying problems associated with credit cards:

Choosing the Right Credit Card

Multiple APR. Some consumers are not aware that their credit card imposes different interest rates for different transactions.  For instance, the APR for your balance transfers may be different from the APR applicable to your purchases or cash advance transactions.

This is especially true for credit cards that offer a low introductory rate or 0% APR.  The low rate or the 0% APR may either apply for your purchases only or balance transfers only.  Before signing up, it is very important to be clear about the exact rates you get for every transaction you make.

The introductory period. Introductory offers may be good for three months, six months or twelve months, depending on your credit card issuer.  As a cardholder, you need to be aware of the exact period when the promotion ends.  Before signing up, make sure that the regular interest rate will still be reasonable after the introductory period.

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Know the consequences of the rewards. Reward programs seemed to be the best thing that happened to credit cards.  However, some reward credit cards may actually impose unreasonable fees and very high interest rates.  Such costs may offset the value of rewards you can get and you may be better off with a non-rewards card.

Before applying for a reward card, carefully examine the terms and conditions of the reward program.  Know the exact rules on how you can earn and redeem your rewards.  Know the restrictions that apply to the program.

Cash advance features. Credit cards that allow cash advances may seem like a great thing but watch out!  Each time you use your card to take out cash, you are automatically charged with the interest rate and a possible transaction fee.  Instead of borrowing cash from your credit card, you may consider other options applicable to your situation.

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!

Today I was getting a rental car for my nephew and I pulled out my prepaid debit card out of habit.  The guy at the counter informed me they charge a bit extra for debit cards do I have a regular credit card.  I was a bit surprised but as I took the card back he said “Yeah doesn’t it suck having bad credit ?”  I can only use a debit card too.

BIG MISTAKE

I then had to inform him that I have excellent credit and CHOOSE to use my credit card for emergencies only. I told him that using a prepaid credit helps me to stay on budget and I don’t make impulse purchases the way I used to.

That’s when the lady behind us chimed in, that she had recently read an article in the newspaper on how people were starting to use prepaid debit cards instead of regular credit cards.  Using a debit card doesn’t mean bad credit anymore, its becoming the  card choice of debt conscience people!

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, pre paid credit cards and prepaid cell phone service can save you big money!