If you plan to rent a car on your next trip, you must have your credit card ready. But what if you do not have a credit card? Or what if you do not want to use a credit card to rent a car? Is it possible to use your prepaid debit cards for payment?

Here are some tips on how you can use a prepaid debit card to rent a car without hassle:

Explore your options. Different auto rental companies have varying policies in accepting renters. Do your research online and get to know which companies allow prepaid debit card payment. It is also a good idea to call up different branches of the same company as the rules may vary from one branch to another.

Be prepared to wait in line. Paying with a credit card is the quickest way to make a transaction. If you’re going to use a prepaid debit card, expect that the process will take much, much longer. You may have to wait in line at the car rental counter as your credit history, proof of auto insurance, and other Identifications are verified.

Load up your debit account. Aside from the cost of the car rent, you must have available funds in your debit account. This is known as the “hold” or “block” – funds which are linked to your checking or savings account.

Visa or MasterCard. Merchants and auto rental services only accept debit cards that are supported by major processors such as Visa or MasterCard. If your debit card does not bear the Visa or MasterCard logo, major rental companies may refuse to do business with you.

Check your credit rating. Your personal credit rating will be questioned as well. If you have a history of bankruptcy or if you have a low credit score, you may find it difficult to rent a car using prepaid debit cards.

Prepare necessary documents. You will be asked to submit supporting documents such as utility bill, proof of auto insurance, return airline ticket, itinerary, driver’s license, and valid IDs. The names and signatures on the documents you submitted should match with the name and signature on your prepaid debit card.

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!

To find the best pre paid credit cards in the market, we need to do research and comparison. Doing research means more than just browsing through the ads.  Let’s talk about tips on how you can make the right prepaid card choice.

Important Factors that Must Influence Your Decision

First, you need to know the factors to look for from a prepaid credit card.  For instance, you need to find a prepaid card that is supported by a major issuer or processing service.  This way, you can be sure that you can use your card for payment or purchases anywhere you are.

Ideally, you want to go with a card that has a Visa or MasterCard logo.  Amex is another popular name in credit cards but there are more merchants and establishments that accept Visa and MasterCard payments.

It is also crucial to make sure that your chosen card imposes no hidden fees or unreasonable costs.  Pre paid credit cards are great because you won’t be charged with interest rates or late penalty fees.  However, prepaid cards do charge a transaction fee each time you swipe the card for payment.  If you’re not careful, you could end up with a credit card that imposes expensive fees.

Check online for prepaid credit card reviews from finance groups and cardholders.  People who have personally used the card often share their views by posting articles or comments on blogs, forums and social community group discussions.

There are prepaid debit cards that also offer rewards.  You may be awarded points each time you use your prepaid card to pay your bills or make purchases.  Points may be equivalent to available credit in your account or may be exchange for merchandise.  If you can find a prepaid card with reward offers, then surely it’s worth considering.

Other factors that you should check on are prepaid credit card features.  Does it allow online banking?  Can you access your account online?  Does it offer 24/7 customer service?  Does it offer fraud protection?

Lastly, you want to choose the issuer that provides credit reporting to the major credit bureaus.  In the past, prepaid credit cards do not report payments to the bureaus so they cannot be used for building credit history.  Today however, there are prepaid credit card issuers that do offer this service.

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, more and more people recognize the benefits of owning prepaid debit cards.  Although it does not provide the cardholder a credit line, that same limitation can actually be an advantage for people who want to stay away from bad debt.  Let’s discuss the benefits of owning a prepaid debit card.

Who Needs A Prepaid Card?

Parents who want to provide credit cards to their college kids but may be hesitant to do so for fear of the risk of bad debt.  With a prepaid card, that risk is eliminated.  Parents can choose to limit the amount of cash deposit in their teen’s account so they will be able to stick with a budget.  Once the balance in the account runs out, the cardholder cannot make anymore charges to the card.

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Prepaid debit cards are also practical tools for frequent travellers.  It is a great way to shop without cash.  These cards carry the Visa or the MasterCard logo and are a recognized mode of payment in many establishments worldwide.  For online shoppers, a prepaid card is a safer way to shop since you don’t have to reveal your credit card information or bank details.

Advantages of Using Prepaid Cards

What are advantageous of using a prepaid card?  Consider these:

Convenience. Prepaid cards provide the same convenience as credit cards.  You can take your card with you and make purchases without cash.

Cost efficient. Unlike credit cards, there are no interest rates, late penalty charges or over-the-limit costs.

Safe and quicker money transfers. Prepaid cards can be used for quicker and safer money transfers.  If you have a teenager who’s staying in a boarding school, you can send money to your child any time using a debit card.

Control your spending. Prepaid cards cannot be used for advanced purchases.  This reduces the risk of buying on an impulse or spending more than what you can afford.  If you don’t have a balance in your account, you will have more time to consider whether or not you really need to make the purchase.

Build or rebuild your credit history. The great improvement with debit cards is that they can now be used to build credit history or improve a low credit score.  Find an issuer that will report your payments to the three major credit bureaus (Experian, Equifax, TransUnion) and you should be able to improve your credit standing one step at a time.

Costs of a Prepaid Card

Prepaid cards do not charge you with interest rate, over-the-limit costs or late penalty charges, but you need to be aware about the fees before choosing one.  Take note that you will be charged a transaction fee each time you use your debit card for payment.  There is also an annual fee to keep your account active.

Just as it is important to read the fine print when choosing a regular credit card, the same step is important in choosing a prepaid 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!