Prepaid Credit Card US

By: EconomyWatch Content   Date: 24 February 2010

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EconomyWatch, Content Team

 

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Ever wondered how people with bad credit histories flash their credit card and enjoy the convenience of cashless transactions?

Had it not been for prepaid credit cards in the US, many people would have still been required to carry cash for shopping, and online purchases could have been a distant dream. Prepaid credit cards in the US give that freedom to people with poor credit ratings and let them shop online. In the USA alone, there are over 25.97 billion prepaid card users (2009 statistics).

However, beneficial as they may sound, consumers need to be careful at the time of choosing a prepaid card, since these cards tend to charge interest rates and activation charges that can decrease the deposits to a lower than desired amount.

Strings Attached: Prepaid Credit Card in US

A prepaid credit card usually comes with the following charges:

·        Annual fees

·        Activation charges

·        Finance charges

·        Overdraft fees

 

Different issuers charge different fees; thus researching for the most economical offers becomes the best way forward.

The Best Prepaid Credit Cards in US

Based on the aforementioned factors, the following are some of the best options when it comes to prepaid credit cards in the US:

·        Prepaid Visa Purple Diamond RushCard: This card comes with free activation and no overdraft fees. One can make direct deposit without any surcharge and access other services, such as online bill payments. However, there is an annual fee of $9.95.

·        UPside  Visa prepaid card: This card, too, comes with no activation fee and is the cheapest one on offer, when compared to other prepaid cards. One can escape the annual fee as well if a minimum balance of $300 is maintained in the account on a monthly basis. One can also benefit from free direct deposits from the employers.   

·        AccountNow Prepaid Visa card: This card comes with free credit builder service and zero activation fees. There is no overdraft fee or minimum balance required. Consumers are also given $25 cash bonus when they use direct deposits.

·        NetSpend Visa Prepaid card: This card comes with a free direct deposit service along with an ‘Iadvance’ loan option. The monthly fee is slightly high at $5.

One feature that consumers looking to build their credit scores must check for in prepaid credit cards in the US is ‘credit reporting.’ Ensure that your prepaid card issuers report to the credit agencies at least once every quarter.


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