|
|
Prepaid credit cards are not really credit cards in the truest since of the term because the amount you can spend is determined by how much you have on deposit. It is really more like a debit card you have for a checking account but with a few differences (see below).
It is no different than putting up collateral for a loan. For instance, when you finance a car, the lender holds the title to your car until the loan is paid off. The same is true for a mortgage on a house. When the mortgage is paid in full, you receive a released deed to the property.
Prepaid credit cards provide several benefits to a wide variety of people.
Prepaid Credit Card Benefits
- Parents who want to teach their children how to use a credit card can use a prepaid card to insure that purchases are kept within a budget amount.
- Persons who have bad credit or a limited credit history.
- Some prepaid cards report your payment history to a credit bureau, helping you re-establish yourself
- Some of the credit cards offer benefits like other types of credit cards.
- Read our article Credit Report Services to learn about another way a pre paid credit card can help your build your credit history
|
Prepaid Credit Card Issuers
- Bank First is a major player in prepaid credit cards, offering several different choices to meet the needs of its customers.
- New Millenium Bank offers a prepaid MasterCard® that can be used anywhere in the United States where debit MasterCard®s are accepted, including ATM machines. NMB also offers secured credit cards.
- MetaBank services are based on the philosophy of founder Stanley Hahr, "You just gotta take care of people." They understand that when changes happen in your life, those changes also affect your financial situation.
- Palm Desert National Bank is a nationally chartered financial institution with assets exceeding $400 million. It began as a local bank in Palm Desert, California in December 1981. It's now recognized as home to Electronic Banking Solutions (EBS), a division that was established in 1994. EBS provides more than $850 million in vault cash and cash management services to over 21,000 ATMs and kiosks nationwide with corporate offices in California and an operations center in Louisiana.
- First Bank of Delaware began by providing business banking services in the state of Delaware. Expanding its business to the national level, First Bank of Delaware entered consumer credit card market by offering credit cards designed to improve the creditworthiness of those with poor credit. FSB reports credit history to the major credit reporting bureaus.
- Dakota State Bank of Blunt, South Dakota offers the Rewards 660 Visa Card -- a credit card designed for people with poor credit, those who have filed bankruptcy or people who have established no credit history.
Prepaid credit cards have fees that may be paid in various ways. Some fees are based on how you plan to use your card, such as credit bureau reporting. While it's not like having a real credit card, so to speak, prepaid credit cards certainly have a place in today's financial markets. One of them might be just what you're looking for.
Click here to review Prepaid Credit Cards available to you. |
|
|
