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Are prepaid credit cards worth it?

Posted on: 14th Sep, 2007 05:24 am
I have received a prepaid Credit card offer in my mail. The offer is such that my money will directly deposited to the card from my paycheck. Is it worth going for such cards and legitimate?
Hello Davis,

It is better to get prepaid cards on your own rather than accept offers through mails.
Posted on: 14th Sep, 2007 05:27 am
A prepaid card can be a great last resort at building credit. But you should get one through your bank.

A prepaid card is just that you give them the balance up front and then pay interest on it. If you can't get credit any other way then this could be a good way to rebuild credit. It doesn't make any sense if you have other options.

And yes don't deal with mail companies. Some will charge you all your prepaid amount in fees and then still make you pay it back with interest.
Posted on: 14th Sep, 2007 03:57 pm
Hi Davis,

You should not accept any prepaid credit card offer that you receive through mail. Most of the time, you will find them fraud. It is better to take the prepaid credit card through your bank only as said by Livinginnky. Your bank will be more reliable for any transaction.
Posted on: 15th Sep, 2007 02:05 am
Hi,

Whether it's a prepaid card or any such offers, its better not to pay any attention to such offers sent by anyone through mails, yes if it's a reputed company then you can think of it.

The best thing I find about prepaid credit cards is, it works just like a debit card wherein you deposit a certain amount and withdraw cash from it whenever required. And, there's nothing like paying an interest on the cash withdrawn. This is how a prepaid card differs from any credit card. So, you aren't in debt while using a prepaid credit card.

Thanks,

Jerry
Posted on: 29th Sep, 2007 12:42 am
These are actually secured credit cards made for people with bad credit. They technically work the same way regular credit cards do, but they have to have a minimum deposited into their accounts which also becomes the credit card limit. In this way, every time a secured credit card user uses it, the money that is being used is the user's and not the banks. It is important for users to remember that they should also pay their balances off every month. If they religiously make timely payments and in full, banks will eventually offer them regular credit cards.
Posted on: 26th Apr, 2013 03:12 am
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