Four Tips for Receiving the Best Prepaid Credit Cards
Prepaid credit cards can be convenient, especially for those who cannot obtain a traditional credit card. Others choose to keep a prepaid credit to use when shopping online so that they do not have to risk the account numbers to their other credit cards being compromised. Whatever the reason that you are considering one, look below for four tips for receiving the best prepaid credit cards.
Shop Around
Some people think that all prepaid credit cards are the same. This is not the case. Some charge just one fee per month while others have a whole menu of fees such as transaction fees, service fees, even fees for loading more money onto the card.
You will need to examine each card’s fees along with the way that you plan to use the card to determine which prepaid credit card will be the best deal for you.
For example, if you only plan to use the card once a month to shop online, then it would make more sense to get a card with a per transaction fee and a lower monthly service fee. If you think you will be using the card a lot, then you should find a card with a higher monthly service fee and no transaction fees.
Read the Fine Print
As with any type of credit card, you really need to take the time to read the fine print. Some cards have clauses that begin to charge you extra fees if you do not use it for a few months. Others state that you cannot use the card to order items over the phone.
You need to know how you want to be able to use the card and then read all of the fine print to make sure that the card you choose will meet all of your needs.
What in a Name?
Some prepaid credit cards will have your name embossed on the front like a traditional card, while others will not. For some people, this may not be an issue, but some need to make sure that the card you choose will have your name on the front.
If you plan to rent a car or book hotel or airfare, you will absolutely need to have your name printed on the front. If not, these places will not accept this form of payment.
Of course, you will need to wait a bit to receive your personalized card. Many retail stores sell prepaid credit cards that you can buy over the counter, load some money right at the cash register and leave the store with a card that is ready to use.
Obviously, you will not be able to do this with a personalized card, but for many it is worth the extra wait to know that you will be able to use the card for most applications.
Call Customer Service
It is a good idea to call the customer service number just to get an idea of how difficult it is to reach a real person. If you find yourself on eternal hold, find another prepaid credit card company. While you do not necessarily anticipate having any problems, you still want to know that, if you do, you will be able to get help quickly.
Go For a Bonus
As more and more companies compete for a share of the prepaid credit card market, many are beginning to offer reward programs to their customers. These programs are similar to the rewards programs of many traditional credit cards.
The rewards will vary greatly from card to card. Some may offer a cash back percentage. Others will issue reward points, which can be traded for merchandise or travel.
Keep in mind that often the cards that offer rewards have fees that are a bit higher to cover the extra expenses. Still, if you plan to use the card a lot, finding a card with a rewards program may not be a bad idea.
Whichever prepaid credit card that you choose, be sure to manage it wisely. Most have additional – and hefty – fees that are charged should you try to complete a transaction for which you do not have ample funds.
Like any other type of credit card, prepaid credit cards can be a useful tool, but one that must be managed well to avoid it becoming a hindrance rather than a help.
loading...
