Pre-Paid Credit Cards?

Question

Is it possible to get a pre-paid credit card from a: Fist National Bank, State National Bank, City Bank (yes with a -y).
And, how does this work is the money deposited into an account or how?????
Thank You

Answer 1

Hi!
I have a few additions. First..even if you got a checkcard from a local bank..that is not going to build credit as someone else has suggested..and help you get a unsecured card. Not going to happen.

The problem with a prepaid card is they come with not only application fees..but may come with monthly fees and transaction fees as well. I have noticed the green dot ones at Walgreens and detest them..no disclosure of these fees upfront..unacceptable in my book..perhaps even illegal.

A prepaid card works just like a checking account..except you have to pay a fee to load more money into the account.
No checks..no overdrafts..no chex system verification.

Gift cards work a bit different..I think they just are for a set amount..and once that is gone..that's it. Time for a new one.

You may be able to get a VISA gift card from a normal bank..but I don't think they handle the prepaids. Prepaids are more for people who do have a chex system record..and cannot open a normal checking account that would come with a check card.

Answer 2

Pre-paid Credit Cards are just that. You deposit $500 into an account and the financial institution gives you a plastic card with the VISA or MasterCard logo that you can use as a regular credit card for the amount you have deposited, less any application fees.

When you make a charge the money is deducted from your account until you have reached your limit.

You must still make monthly payments regardless if you have not used all of your deposit in one month.

Say for example you deposit $500 but only charge $100 this month. Your payment plus interest is still due.

Better option---- Open a bank account and request a check/debit card with a VISA or MasterCard logo. Same concept yet this is a less expensive way to go.

You also build a good relationship with your local bank which will then offer to extend an 'open line' of credit after a period of time.

Answer 3

A prepaid debit card is a great solution for a lot of people because the money you spend is your own and in most cases you cannot spend over the amount you have in your account.

This is a good solution for people who may have had difficulties with debt or bankruptcy in the past because a prepaid debit card is a great tool for developing invaluable financial management and budgeting skills.

A major bonus of some prepaid debit cards today is that during the sign-up process you are offered an opportunity to sign up for an additional service that will help you rebuild a bad credit history by having your monthly payments reported to one or more of the major credit reporting agencies.

Subsequently, each month your card's issuer credit reporting partner will process your payment record and verify that your payment is properly posted to the credit bureaus' records.

There is a small additional fee involved for this service each month, however, the fees are minimal by comparison to the sometimes outrageous fees and interest payment some credit card companies charge people with bad credit. Read more about prepaid credit card at:http://www.credit-card-gallery.com/article/62,How_A_Prepaid_Debit_Card_Can_Help_You_Rebuild_Your_Credit

Answer 4

There is no Pre-paid Credit Cards. Only Pre-paid Charged Cards. For the latter, it means you pay an upfront amount to the card. For every purchases, the amount will be debited from the card until zero-value. However, you can top-up the amount when the value is low. This is as good as cash. I don't recommend you take this option because if it's lost, any bearer can use the card until zero-value.

Answer 5

They are not credit cards as the issuer is not extending you credit, only a convenient way to spend your own money as though it were a credit card. Yes, you deposit money with them and that is essentially your line of credit. It functions pretty much the same way a debit card does. As the previous poster said, though, there is recourse if it is stolen. I would just open a checking account and get yourself a visa or mastercard debit card.

Answer 6

"If you are not in position to get a credit card due to bad credit, then you can opt for a prepaid credit card.

Prepaid credit cards offer many benefits like:

Interest-Free purchasing

Even people with a bad credit history can get prepaid credit card.

The credit limit varies according to the balance on the card.

Most of the retailers accept prepaid credit card, and it can be used just like a credit card or a debit card.When you use prepaid credit cards for any purchase, your money spent would be automatically debited from your balance present on the card."