Prepaid Credit Cards - A Viable Alternative to Credit Card Debt

For some people, having a credit card in hand is like giving a beer to a recovering alcoholic. They mean well, but have trouble abstaining. The problem is compounded by the fact that in todays society, there are many occasions (such as renting a car, selling on ebay or ordering online) when you really do need a card.

This is where a prepaid credit card can be especially helpful. Originally designed for adults with poor credit ratings, prepaid credit cards are also becoming a valuable tool for parents of teenagers. The credit limit on such cards is determined by how much money is placed in the bank. This fact alone can teach an important lesson: if the money isnt there, they cant spend it. Rather than enabling us to spend money we dont have, credit cards should be tools of convenience.

Not Free
Its impossible to get a late free on a prepaid card, as there is nothing to pay off. But there are annual fees, monthly fees, activation fees, customer services fees, ATM cash withdrawal fees, fees per purchase on prepaid cards and even inactivity fees. So it pays to shop around before picking a card.

There are scammers in the prepaid credit card business too, just as there are in just about any business. If your prepaid credit card company is tacking on $1 every time you use the card, or $10 per month just to carry their plastic, beware. There are better alternatives available, but its up to you to find them.

Not always accepted
There are also some gas stations and car rental companies that do not accept prepaid credit cards. The logic behind this seems unclear and the incidences may be minor, but the fact it, your prepaid VISA may not work everywhere you want to be and this is one drawback to consider before getting a prepaid card.

Neutral on your credit
While prepaid credit cards wont tear down credit, they dont build it up either. If your goal is to re-establish your credit history, a secured credit card might be the better way to go. Prepaid credit cards are a great tool for gift-giving or spending money for your child, however.

The bottom line is you need to do your homework before buying a prepaid card. The bank has to make money somehow, so even the best of deals is going to cost you something. With a regular credit card, the bank makes their money on interest, late fees and penalties. If you have good credit and the willpower to manage a regular credit card wisely (e.g. never charging more than you can pay off each month and never being late on a payment), a regular credit card will always be your less expensive option. But if or one of your dependents really has trouble keeping the balance in check, a prepaid card may be just what the doctor ordered.

For more information on debt free living, visit http://www.debt-free-living.net

Charter Condominiums Beaver Creek Colorado
The Metropolitan Condominiums Kansas City Mo
Orange County Condominiums
Marina Cove Condominiums Columbus Georgia
Condominiums Centreville Va
Mount Pleasant Condominiums
Northgate Condominiums Thousand Oaks
Federal Arms Condominiums Bridgeport
Arizona Condominiums
Elm Grove Condominiums
Aventura Marina Condominiums
Homeplate Condominiums Charlotte
Montage Condominiums Price Clovis Ca
Leech Lake Condominiums
Wisteria Landing Condominiums
Hope Plantation Condominiums Frederick Md
Condominiums For Sale Lake Hopatcong Nj
Milano Condominiums Laguna Niguel Ca
Pewaukee Wisconsin Condominiums
Asheville Nc Condominiums
Ridgewood Condominiums Melbournefl
Charleston Condominiums
Condominiums In Yaletown
Waukesha Wisconsin Condominiums
Ravencrest Condominiums
Ayer Condominiums
Condominiums In Apex
Parker Colorado Condominiums
Riverfront Condominiums Niles Mi
Rembrandt Condominiums In Hamilton
Townhouses Condominiums For Sale Massachusetts
Forensic Accounting
Sitemap
Oc Forensic Accounting Jobs
Salary For Forensic Accounting
Accounting Career Forensic
Cases In Forensic Accounting In Canada
Forensic Accounting Programs
Forensic Accounting Career