If you are looking to get a prepaid credit card because you do not qualify for a bank account, the last thing you need is to be paying a bunch of fees to spend your own money. Another trick of some of the less reputable prepaid credit card issuers is to charge high application fees. Before you pay out, you should watch out – because such really is not necessary. There are too many companies offering good deals out there for you to fall in with one that isn’t trustworthy or that takes advantage of its customers’ unfortunate financial situations. In fact, with some smart consumer shopping you should be able to find a prepaid credit that is either free or close to it.
For those of you who may not know, a prepaid credit card is like a credit card or debit card with some important differences. You load money into an account for the card before you spend any money or otherwise use it so you cannot go into debt with this card or spend money you do not have. The issuer of the card is not giving you any line of credit, but you can continue replenishing prepaid cards with funds. Because Visa and MasterCard back these cards, they work like credit or debit card at just about any store or ATM. You can pay bills online or over the phone. However, you are always spending your own money rather than that of the credit card company that issued it. Because of this, you will never face bounced check fees, over the limit charges or finance fees.
The fees on these cards already tend to be low. So how do you get a free one? Do your homework. A lot of card issuers will waive their fees if you agree to have your paycheck directly deposited onto your card every time you are paid. This will also save you the hassle and wage loss of trying to cash your check at a check cashing business or bank. Government checks and benefits can also be directly deposited, and these are always loaded without fees. Card companies are very competitive; use that to your advantage to find a good deal. These companies do not run credit checks, so don’t let a bad credit history convince you that you should pay higher fees.
When you go to search for the right prepaid credit card online, actually type into the search engine “free prepaid credit cards.” You will see that many companies offer deals with their cards. Just be sure to carefully read the fine print and understand where fees may be hidden.