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!