Searching For Prepaid Credit Cards

There are many reasons why you may be looking into a good financial solution and the chances are you will come across prepaid credit cards on more than one occasion. Prepaid credit cards can be very beneficial to any individual and here we will help you understand how these cards work and how you can use one to your advantage.

So what exactly is a prepaid card and what is its purpose?

Prepaid cards are very similar to a regular credit card provided by your bank or chosen card vendor however they eliminate some of the key problems with today's credit card industry. When you here the term pre paid it generally refers to some form of upfront payment and that is exactly what it required for us to take out a prepaid card.

When you apply for a card it is almost guaranteed to be accepted which is far from what can be said with a regular card. You may ask yourself why this is so, and the answer is because of the nature of the card; with a standard credit card as soon as you use it you are in debt to someone else and standard credit card companies typically turn down applicants who they believe will be unable to keep up with repayments and charges causing them to lose money this is usually people with a bad credit rating or previous credit card problems. As mentioned above to get a prepaid credit card you must pay into the account prior to its use, which means technically the card vendor owes you money, the opposite of a regular card. This eliminates the need for the company to run a credit check on you as you will never, in theory, owe them any money, making this a great solution for anyone suffering with bad credit. Another great thing is that prepaid credit cards can be used for anything that a normal card is used for and nowadays a credit card is required to do certain things that may be required for anyone such as booking a hotel or hiring a car.

Although with this type of card you will avoid major monthly bills and crazy interest rates, you do not escape fees all together as the vendor needs to make a bit of money somehow. Generally there won't be many fees associated with a prepaid card but ones you will typically find are a set-up fee and a monthly charge. Set-up fees will be a small amount you pay prior the being able to pay in and use your card, it shouldn't be too expensive and once this one of payment has been made you are free to use the card. Monthly fees are usually at a set rate (be sure to check this out before you sign any agreement), this charge will not be based around how much money you have in your account or the amount you have spend in the charge period.

The good thing about these Prepaid cards charges compared the corresponding charges of a regular card is that they are fixed and you will always know the amount you are paying at the end of the payment period. If you buy an item for £1000 you will not be charged 20% interest and you will not pay interest on your account balance because you should never be in negative credit.

For those of you who are interested in learning more, take a look at Prepaid Credit Cards

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The nFinanSe Prepaid Card by Discover

Prepaid cards have been increasing in popularity as a good option for those who are bank averse or have a hard time qualifying for a standard checking account. One option is the nFinanSe card offered by Discover. It has a retail prices at $3.00. There is no credit check or security deposit. You will not be charged overdraft fees due to the fact that you are only allowed to spend the amount of money in the account, nothing more.

Funds can be loaded to your card at over 80,000 participating locations nationwide. A standard fee of $2.95 is assessed; however, the fee may vary at MoneyGram locations as these are set by the individual stores. A maximum of $950 per day can be added, but this is limited by the fact that only $500 can be added at any one time. You should also be aware that the total balance of the account can not exceed $5,000..

While it does have a lot to offer, there are fees for some services. There is a $0.99 charge for ATM cash withdrawals and online bill pay costs $0.44 per transaction, or the same as the current cost of a stamp. ATM balance inquiries and declines are $0.49 each occurrence. Additionally, you can choose to personalize your card design for a fee of $1.75, which could prove useful should if it is lost or stolen.

When making purchases you can choose whether to use as debit or credit. In which case you will confirm purchases with either your PIN or your signature, depending on which one you choose. If you choose to enter your PIN you have the option of receiving cash back on your transaction.

This will act just like a checking account because you can avoid the time and expense of going to the bank and paying to have your check cashed or you can use direct deposit. Currently this is only available for employer payroll however we are confident in the very near future this will also include government benefits and tax returns.

Many individuals find it useful that they cannot go into debt with these. Your only going to be approved for purchase with which you have the funds on your card to pay for. There won't be any late fee or overdraft fee. However this card does carry a monthly fee of $2.95. While this is a fee it is a very low one in the industry. We have seen their competitors charge up to $19.95 a month.

It can be used to make purchases online and over the phone. You can also use it to rent a car or a hotel room. It will come as a Visa and is covered under their zero liability policy. This is insurance that your money is safe in case your card is lost or stolen.

Before you apply make sure to fully research the terms and conditions as it is common for offers to change their fees and services on a regular basis. In addition to that, this is a very new offer in the market and we are sure they will need to work some kinks out and provide some services. However they are entering at a very competitive position and we would encourage you to do additional research about this offer.

For more about the nFinanSe Card visit us or to learn more about Prepaid Cards. You can also get a free credit consultation and learn how you can remove questionable information from your report by calling 1-800-483-0256.

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