Noreen Ruth is a writer specializing in credit card and financial information, she has extensive knowledge and experience writing articles that help consumers use credit to their best advantage. For additional articles and extensive resources for everything you need to know about credit cards, please visit us at CreditCardsPI.com – Best Low Interest Credit Cards.
American consumers look for ways to lesson the pain of a credit crunch and deep debt, especially during economic downturns. Many consumers may find that credit cards have moved beyond their reach. Prepaid cards may be the solution to much needed relief. Typically marketed to students and those with poor credit, prepaid cards offer the advantages of standard credit cards without the fear of accumulating more debt.
Unlike debit cards, which require a checking account, both prepaid and secured cards are not tied to your bank account. There are no monthly payments because the card, similar to a gift card, has money deposited into an account specifically for this purpose. The spending limit is equal to the amount on deposit. Network-branded cards bearing the American Express, Visa or MasterCard logo can be used anywhere that traditional credit cards are accepted.
If you’re interested in a prepaid or secured card, there are a few things to consider:
- Understand the fees – Many prepaid credit card offers include added costs. Be sure you know if there is an annual or monthly service charge, or ATM fees and how much they will cost.
- Protection Services – Credit card companies offer protection services for purchases made with a credit card. Prepaid cards branded by Visa, MasterCard, Discover, etc. afford a varying degree of rights including protection from unauthorized charges. Read the card agreement to understand how to return purchases made with a prepaid credit card.
- Credit History and Score – If you’re hoping to boost your credit score, just remember that transactions made with a prepaid credit card are not generally reported to the credit reporting bureaus. Secured and unsecured credit cards are reported. Ask the card issuer whether it reports to the credit bureaus before applying; confirm it afterward by reviewing your credit report by visiting www.annualcreditreport.com.
Research comparisons of top credit card deals and apply online. Fill out applications for Visa, MasterCard, American Express, and Discover. Choose the right card for your specific financial needs.
- Related Videos
- Related Articles
- Ask / Related Q&A
- Bad Credit Credit Cards are not Bad at All
- "Bad Credit" Credit Cards: How You Can Avoid High Fees
- Knowing When to Apply for a Bad Credit Credit Card
- Does a Bad Credit Credit Card Really Exist?
- Bad Credit Credit Cards: Help for Those With Credit Issues
- Bad Credit Credit Cards: How to Use Them
- Frequently Asked Questions About Bad Credit Credit Cards
- Bad Credit Credit Cards - What To Look For In Credit Card Offers
Credit Card Debt Settlement Services - Becoming Debt Free in 2010
By: Hector Milla | 31/12/20092010 is a new year and many people are setting some lofty financial goals for the upcoming holiday season.
Credit Card Debt Settlement Can Eliminate Half Of Your Debt
By: Hector Milla | 31/12/2009What would your debt look like if it was cut in half? For many individuals, that sounds like an absolute dream.
A Plan To Eliminate Your Debt
By: Hector Milla | 31/12/2009Credit card debt can be terrifying for anyone.
Can I Eliminate My Credit Card Debt In A Legal Way?
By: Hector Milla | 31/12/2009Though many don't understand this, the legal code is set up to give people with debt lots of options in today's financial world.
Credit Card Debt Management Services - Help To Lower Debt
By: Hector Milla | 31/12/2009Fighting credit card debt is something that many people have to do each and every month.
Credit Card Debt Consolidation Loans - Saving On Interest Rates
By: Hector Milla | 31/12/2009When you think about the reasons why you can't make it out of debt, one of the things that should initially pop into your mind is the interest that you are paying on various credit cards.
Credit Card Debt Consolidation Help – Use Just Trusted Sources
By: Hector Milla | 31/12/2009With the flailing economy there are more and more "financial services" companies coming out of the woodwork claiming that they can assist you with all of your credit card debt needs.
Unauthorized Use of a Credit or Debit Card
By: Noreen Ruth | 14/12/2009 | CreditThe convenience of electronic payments may make consumers feel safe, but the reality is that we are still vulnerable to unauthorized access to our debit and credit cards.
Beyond Loans - The Importance of Your Credit Score
By: Noreen Ruth | 14/12/2009 | CreditCredit score matter more than many people realize or consider. It impacts more areas of life than just the ability to qualify for a credit card or a loan.
Discrepancies to Look for When Reviewing Your Credit Report
By: Noreen Ruth | 14/12/2009 | CreditFinding and fixing errors and discrepancies on your credit report.
Choosing the Best Online Dating Service
By: Noreen Ruth | 14/12/2009 | DatingIf you're new to online dating, just the vast number of sites available for you to choose from can be daunting. To make the process easier the first and probably most important decision to make is to define exactly what you're looking to get out of a dating service.
Be Wary of Online Dating Red Flags
By: Noreen Ruth | 17/10/2009 | DatingOnline dating is the easiest way to find your soul mate. But there are pitfalls just like traditional dating. Here are several red flags to look out for.
Using Credit with Security in Mind
By: Noreen Ruth | 17/10/2009 | CreditOdds are that hardly a day goes by that you don’t use a debit or credit card or write a check to make a purchase. And chances are you’ve never even considered the potential for identity theft if you’re not careful with these types of transactions.
The Rise of Prepaid Credit Cards
By: Noreen Ruth | 17/10/2009 | CreditWith more Americans moving away from credit cards to avoid bigger credit balances, prepaid credit cards are the new plastic.
Kids and Credit - Good or Bad Mix?
By: Noreen Ruth | 17/10/2009 | CreditCredit can be an advantage when used responsibly. Teach your kids how to handle a credit card for a healthy financial future.