There are lots of prepaid credit cards for customers to choose from. Much of the choice is in what the cardholder wants to do with the card. Finally, one should actually consider the cost to use the card with loading, transaction, and live customer service fees.
Prepaid Credit Cards Unleashed
With the new bankruptcy laws in place, people are trying to find new methods
of having credit cards without the bill at the end of the month. Not all prepaid
cards are the same, so the consumer should be fully aware of the terms that
each prepaid card comes with.
Definitions
Gift Card: This is a
card for a specific amount for a specific location, like Wal-Mart. Some
banks, retailers, and websites offer gift cards with the Visa, MasterCard
or American Express logo on them. They are for a specific amount, specific
person and usually cannot be replenished.
Prepaid Card: This is
a card where the consumer puts a certain amount on a card carrying the
Visa or MasterCard logo on them. They can be used anywhere that those
cards are accepted. The cards are to a specific person, but are replenish
able.
Secured Card: A Credit
company who considers a person a risk will require them to put a certain
amount in a savings account at their bank. The amount of the deposit is
the amount of the credit line.
Unsecured Card: This
is the standard credit card offered after a credit check and other
verification.