We have all been taught to live only within our means. In today’s society which features lavish lifestyles and shopping sprees, most people find it hard to manage their finances well that they even go way beyond their specified budgets so that they could enjoy the best things in life.

Eventually these individuals find it hard to resist using their credit cards to finance their online purchases, and travel charges. Soon, they accumulate so much debt that will prove to be very difficult to settle.

So if you believe in the premise that you need to control and discipline yourself to stick only with whatever finances you have, but still you would like to keep a handy plastic card; then, you might as well apply for prepaid debit cards. What are these cards for? The answer is provided below.

Prepaid debit cards are excellent tools to give people the flexibility to make purchases without the threat of accumulating large debts. The reason behind this is that this debit card requires a fund to be ‘loaded’ or transferred to it, before a cardholder could use it for making purchases or settling monthly bills.

These reloadable prepaid cards function in the same manner as prepaid mobile services; you only get to enjoy sending messages and calling up your friends as long as there is available credit on your mobile phone. By using these debit cards, people will surely live and stick to the budget they have set, without encountering any credit entanglements.

Another good thing about most prepaid debit cards is that they do not charge interest rates on purchases. (some debit cards DO charge fees on declined transactions)

A lot of other cards today impose a large number of fees to their clients, especially when their clients encounter declined purchases. But for these reloadable prepaid cards, cardholders need not worry about additional interest rates and late penalty charges.

Other features of prepaid debit cards include, relatively easy approval of card application, and online monitoring of the expenses and purchases charged on the debit card. These features prove to be helpful in convincing more people to get their own prepaid debit cards so that they could also reap the benefits that these cards could offer.

So, apply now for these debit cards and soon you will realize the value of living only within your means.

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!

A lot of parents are hesitant about handing credit cards to their teenagers due to the risk of bad debt.  Surveys prove that teenagers are more prone to overspending especially since most of them do not pay for their own charges.

In this article, let’s discuss how prepaid debit cards can be the perfect tool for teaching young people how to handle credit without falling in the trap of uncontrolled debt.

Prepaid Cards – How They Work

A prepaid card can be used for purchases from a regular store or an online store much like a traditional credit card.  It is cashless form of payment.  However, instead of paying for your balance at a later time, a prepaid cardholder must first deposit cash in his/her account before charging expenses to the card.  In short, you can’t use your prepaid card if you don’t have existing funds.

Prepaid debit cards can also be used for sending and receiving cash to people from afar.  Instead of paying a wire money transfer service, you can send money to your family members using your debit account.  Once sent, the recipient can withdraw the money from a nearest ATM.

Both Visa (Visa Buxx) and MasterCard (Allowcard ) have created their own versions of prepaid debit cards especially for teens.  Unlike credit cards, prepaid debit cards do not have interest rates, overdraft fees or late penalty charges.

Teach Your Teens About Credit Management

If you are a parent, here are practical tips on how you can train your teenagers on how to manage credit responsibly:

Limit their credit usage. Deposit only a limited amount of cash in your teenager’s debit card.  They should know that once their available balance is spent, they will need to work their own budget.

Let them earn it. Parents can set house chores or tasks for their kids to help them understand about the value of work and money.

Keep track of their spending. Parents can easily monitor their teen’s spending habits by simply logging in to the account.  Most debit card issuers provide an online account access for easy checking.

Involve your teens. When choosing a prepaid debit card, get your kids involved.  In comparing different debit cards in the market, study possible choices with your child.  Read the fine print or the Terms and Conditions together.  This way, your teen will be aware about the costs in maintaining the debit card as well as its limitations.

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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!

Aside from convenience, the primary purpose of getting a student credit card is to build an early credit history. Nevertheless, instead of building a good credit rating for themselves, many young people found themselves stuck in bad credit due to poor credit card use. If you are thinking about providing your teenager with a credit card but hesitant because of the risk of overspending, why not consider getting a prepaid debit card instead?

The Difference of Credit Cards and Prepaid Cards

Credit cards give its cardholders the freedom to use the card for advanced purchases and pay for them at a later time.  Generally, a credit card comes with a grace period where the cardholder must pay off his/her balances to avoid incurring the interest rate fees.  A credit cardholder may choose to pay off the full balance or submit only the minimum required payment.  However, if a credit cardholder fails to submit any payment on or before the due date, he/she will incur an additional late penalty charge plus interest.

On the other hand, debit cards are prepaid or paid in advance.  In order to use a prepaid debit card for payment, the cardholder must have available funds in the account.  When the funds have been used, a prepaid cardholder must make a new deposit before he/she can use the card for new transactions.

The limits of prepaid debit cards minimize the risk of teenagers falling in the debt trap.  Parents can deposit only a limited amount of cash each month to their teen’s debit account to keep their spending on track.  Furthermore, prepaid cards eliminate additional costs on interest rates and penalty fees.

Prepaid Debit Cards that Build Credit

In the past, only credit cards can be used to build credit history.  Today, there are issuers of prepaid debit cards that include credit reporting services to the major credit bureaus.  Yes, a student can now start building an early credit history using a prepaid debit card.  Use the internet to search for debit card issuers with a credit reporting provision.

Send Allowance Conveniently and Cheaply

Prepaid debit cards are also valuable tools for sending and receiving money.  Prepaid debit card money transfers are really much cheaper than using traditional Wire Money Transfer Services.  Parents can transfer funds to their student’s debit account through online banking without the need to pay transfer service charges.

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!

Many people do not want to get a prepaid debit card until they need one. When stuck in bad credit, you will not be able to get approved for credit cards that require a good credit score. In this case, applying for a debit card gives you a guaranteed approval.

Prepaid Debit Cards for Rebuilding Bad Credit

It is good to know that prepaid debit card issuers today now provide credit reporting to the major bureaus.  This means people who need to rebuild their credit history can now use a debit card to do so.  However, prepaid debit cards are not just for people with bad credit.  Below are other benefits of using prepaid debit cards.

Avoid interest rate charges. When you use your debit card for payment, your bills will automatically be deducted from your cash deposit.  Since a debit card payment is as good as cash payment, you will not be charged with any interest rate.

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Avoid late penalty fees. Submit your credit card payment even just a day after your due date and you will incur late penalty charges.  With a debit card, you can completely forget about late fees.

Limit your spending. Credit card holders often fall in the debt trap because of maximizing their credit limit or falling behind on their payments.  Because of its limitation, using a prepaid debit card can help you exercise more control over your spending.

Send or Receive money conveniently and cost-effectively. Do you need to send money to your kids?  DO you have employees that you need to send payment to regularly?  If yes, then using a prepaid debit card is an easier and more cost-effective way to transfer money.

Sending money through Wire Money Transfer services mean paying for a service charge per transaction.  With a debit card, transferring money is free as long as your recipient uses a debit card from the same issuer.  Furthermore, your recipient can withdraw the money only a few seconds or minutes after the transfer was done.

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!

When it comes to online shopping, paying through credit cards is the way to go.  However, with case of ID theft and credit card fraud on the rise, many consumers prefer to use other modes of payment.  For instance, online shoppers usually prefer to send their payments through a reputable third party online payment service like Pay Pal.  Some also prefer to use prepaid debit card rather than a standard credit card to reduce the risk of theft and fraud.

Online Payment System Enhancements

In response to the increasing cases of ID theft and fraud, credit card issuers constantly enhance their services by providing special protection for their customers.  Today, most credit cards provide the Zero Liability Fraud Protection, Card Replacement, and Cash Replacement features.  These features give cardholders additional protection against thieves who may try to steal their card details and use them to commit unauthorized transactions.

Internet merchants also take the extra step to ensure their customers’ and their own protection as well.  By using a secured server with a standard encryption of 128-bit, online sellers can block ID thieves who may try to hack their systems.  If you’re going to make an online purchase, make sure that the merchant is using a secured server.  A secured website must begin with the URL https:// and you should see a locked icon in the bottom right corner of your browser.

Internet marketers must take the extra time to verify the identity of a customer or a credit cardholder by calling the credit card company.  This is especially true for customers who place exceptionally large orders online or those who live from outside the US.

Reminders for Cardholders

As a credit cardholder, you are responsible to ensure your own protection.  Before buying online, carefully check the background and reputation of the merchant.  It is best to purchase only from online shops that are recognized by the Better Business Bureau as a trusted merchant.

Be vigilant about monitoring your credit card account, especially after making an online purchase.  Take advantage of the 24/7 online account access feature to ensure that no unauthorized charges have been made against you.  In case there are, call the merchant involved and your credit card issuer right away.

Instead of using your credit card, you may also apply for a prepaid debit card that you can use exclusively for making online purchases.  With a prepaid card, you can simply place an exact amount of deposit in your account, enough to make a purchase.  This way, you will not need to reveal your credit card information over the internet.

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!

Should you transfer to prepaid debit cards? To answer this question, let’s talk about the options that debit cards provide along with the advantages you can enjoy upon using them. But first, let’s briefly discuss what prepaid debit cards are and how they differ from credit cards.

A prepaid debit card looks like a regular credit card. You can carry it with you when shopping at the mall or at groceries and use them as payment. Instead of bringing cash, just bring your prepaid debit card with you and enjoy the convenience. Prepaid debit cards can also be used in restaurants, gas stations, and even at online merchants.

Since they are prepaid, the debit card holder must place enough funds in his/her account before using the card. The purchases will instantly be deducted from the card holder’s debit account so there’s no need to worry about due dates or repayments.

Prepaid Debit Cards vs Checking Accounts

Instead of opening a checking account, having a prepaid debit card offers the same functions that a checking account provides but with less limits. For instance, if you have bad credit, a prepaid debit card is a lot easier to avail than opening a checking account. There’s no need to carry around checks or worry about getting your blank checks stolen. In case your prepaid debit card is stolen, you can simply call your bank right away so that your account can be put on alert.

Using Prepaid Debit Cards for Internet Shopping

Another advantage of prepaid debit cards is they can be used in shopping online even if you don’t have a credit card or a bank savings account. For many shoppers who prefer to shop from the internet, having a prepaid debit card is a great tool because the risk of credit card fraud and identity theft are avoided.

Prepaid Debit Cards vs. Pay Checks

Prepaid debit cards are now used in government offices as well as in private firms as tools for distributing monthly salaries to employees. Prepaid debit cards are easier to use than issuing paychecks. If you have a home based business or a small business, you can use prepaid debit cards in sending your payments to your employees regardless of their location. Now that freelancing is gaining wide popularity among business owners, prepaid debit cards are also enjoying the recognition.

Prepaid Debit Cards vs Credit Cards

Prepaid debit cards do not allow card holders to carry over balances they incur from month to month. With a prepaid debit card, the card holder can only purchase the maximum amount that is available in his/her debit account. Neglecting payment dues and incurring interest rates and penalty fees are also avoided.

This limitation can actually be an advantage especially for those with uncontrolled spending habits. Without the option to carry over balances, a debit card holder is encouraged to use the debit card only for reasonable purchases. If you’ve had trouble with bad credit before, switching to a prepaid card can be a good solution.

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!