Prepaid Credit Cards

Prepaid credit cards are a wonderful resource for managing your money while enjoying the convenience of purchasing all of the things that you want and need. Use them just like a credit card, but be free from the regular hassles of credit card usage.

Prepaid credit cards are wonderful if you have a friend that is impossible to buy for. You can simply provide them with a card and let them buy what they want at their own convenience. It is also quite useful for someone who is trying to build up their credit but is not quite yet eligible for a traditional card. If someone has damaged their credit or does not have enough credit then this type of card is a good choice.

What a Prepaid credit card is and how does a Prepaid credit card work?

CANVAS Visa Prepaid Card

You control your money with the CANVAS Visa Prepaid Card. Benefit from the fact there are no interest charges, no credit checks and no bank account required.

Features of the CANVAS Visa Prepaid Card:

• You control your money
• Safer than holding and using cash
• Accepted worldwide making it ideal for travelling
• Use your CANVAS Prepaid Visa wherever Visa Prepaid is accepted including online and in ATM machines.
• No bank account or credit check required.
• Spend within your means. Being prepaid, there are no interest charges.
• Convenient and easy to reload

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VCARD Virtual Prepaid Card

Get all the benefits of having a debit card, without the actual card.

Features of the VCARD Virtual Prepaid Card:

• Convenient internet shopping with Visa
• Protect your primary credit cards
• Getting the benefits of shopping online
• Access your VCARD accounts anywhere, anytime 24/7 online.

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Gift Card

Gift cards are also prepaid credit cards. It is a predetermined amount of money that has already been loaded on the card. When purchasing gift cards for friends and family, you are able to specify the amount that you want to put on the card. Once you pay for the card, you can then pass it along as a gift. The recipient can then use the card in the same manner that he or she would a regular credit card.

Does that word 'card' tell you something? Yes, it looks like a credit card or a debit card and you have the same ability to purchase goods and services just as you do with either a credit or a debit card. The difference lies in the fact that with prepaid credit cards you can only spend the amount of money on the card and no more. It does not have credit or overdraft facilities attached.

Access to the card is by Pin number when you purchase the card and money can generally be added onto the prepaid card at a bank, Posts Office, Payzone or PayPoint terminal or by transfer through your bank. Not all Prepaid cards have these loading facilities so you need to check with the card provider when doing your research before purchasing.

Why should I use a Prepaid credit card?

There are significant advantages to using a Prepaid credit card over other cards:

• Spending control – this is a huge advantage to some people who have difficulty in managing a credit card. Also if you are giving funds to another person like say a child, you can control the spending allowance and as well as that you can access details to see where and how the monies are being spent
• No credit checks – this can be a good way for someone with a not so good credit history to still be able to carry a card. Identity checks will be carried out to ensure you are using a card under your own name, but that is all
• Travelling away – if you or someone you are funding is travelling, especially abroad, a Prepaid credit card is an ideal way to access cash. It is a much superior and safer way to have cash than carrying a number of travellers' cheques. With the availability of being able to fund the card via the internet these cards make an ideal method of payment for services and goods
• Great for those with bad credit - Prepaid money is a wonderful plus for those who have bad credit. Since you will not be borrowing money from anyone else, you will not have to go through the hassle of a credit check. Many times, the only thing you have to do is load an amount on to your card and start spending at your convenience.
• Reloadable - There are various types of prepaid credit cards. With the reloadable prepaid credit card, you get the card up front, determine how much money you want to put on the card and then start spending. Once the amount has been used on your card, you can reload a new amount of money and start spending again. It is up to you as to the amount that you wish to put on your prepaid credit card each time.

Researching which prepaid credit card is best for you

What credit card and Prepaid credit cards to have in common is the fact that there are various fees to consider. The following are factors to take into consideration before making your final decision:

• Consider the use you are going to have of the card - is it for everyday use and do you need to keep track of expenditure on the internet and do you want to reload it on the internet
• Are you travelling – because you could be anywhere in the world wanting to reload your card it would be important to choose a provider that has 24 hour service otherwise you could be needing money and not be able to reload it because it is not business hours
• Do you need more than one card – if you are looking to have two or more cards on the one account, check that there are no additional fees because of this fact
• Reload options – very important is the reload option, especially if this is going to be your main spending card for everyday needs. You don't want to be out shopping and find you have no money left on your card. You need to make sure there are a good range of reload options to suit your needs
• The basic fee check – like any banking service there are fees so check how much these are and when they are charged

Although a relatively new concept in card spending, the prepaid card market is growing at a rapid rate and over time there will be more competitive deals which should bring down service costs and also have more provision for better service. Consider the options listed above and shop around for the best deal to give you maximum service at the cheapest cost.

The Downside to a Prepaid Credit Card

The downside to these credit cards is that they have card associated fees that can become quite expensive if you are not careful. They can be more costly than debit cards which have their own monthly fees. You should take a look at the different card associated fees before deciding that a prepaid credit card is a good choice for you.

Here are a couple of examples of prepaid credit cards from VCARD and Canvas prepaid Visa card and the fees they charge so you can get an idea what to look for:

• Setup Fees - You must put money onto the card or pre-load it with cash but in addition to that, you must also pay a setup fee.
• Fees for Recharging - If you want to continue using the card, you must continue to add money to it or recharge it. For the privilege of doing this, you will be charged a fee for simply putting money back onto your card. To save yourself some money, you should put a large portion of funds on at one time rather than a few small ones.
• Customer Support Fees - Want to get some help from a customer service representative? Well, you will have to pay for it. There are fees to just speak to someone on the phone.
• Statement and Document Fees - You can probably view your account online but if you want a paper statement sent to your home you will be charged for it.
• Negative Balance Charges - If you had the notion that you could not overcharge on a prepaid card then you would be wrong. Not only can you do it but they will charge you for doing. Be very careful of your "˜limit' and do not go over it.
• Fund Redemption Fees - Getting the cash back from your card will cost you. If you no longer want to use the card and want to get your money off of it, there is a fee associated to doing that.

Why Pre-paid Credit Cards Make Great Gifts

Pre-paid credit cards are viewed more as a gift card even though they are actually a kind of cash present. They are wonderful way to give someone you love something special that they can pick out on their own.

Sometimes it's just too difficult to pick out an exact present for a friend or family member. Sometimes you just don't have the time to run from store to store to shop for a gift. You may need to pick out something fast, yet special, and these cards are the perfect choice.

These pre-paid credit cards are versatile so a person can shop at any store they want. The card recipient is not limited to shop at one or two stores like they would be with a gift card or a voucher. Pre-paid credit cards are flexible and give the freedom of choice.

A surprise gift

Since these pre-paid credit cards are fairly new, a lot of people would never suspect that it is something you would choose to give them as a gift. The recipient will probably be quite shocked to receive a pre-loaded credit card that they can use anywhere they want. On top of being fun and surprising, it is also one of the most useful gifts you can choose. The new card holder will be able to choose a gift based on what he wants instead of receiving a gift you decided he would want. This card will definitely be appreciated.

A positive experience

A lot of people are having a problem with credit card debt these days and seeing a pre-loaded credit card will make them feel pretty good. It will be a nice change for them from having to use a card that carries a lot of debt already. There is no credit on these cards, only cash.

Even though these cards are pre-loaded with cash, the person you give this card to will feel privileged to have a credit card that he can use. There's just something about credit cards that's different from cash.A credit card has more of an air of distinction.

If you have some gifts to purchase and you're not sure exactly what you want to get, consider pre-paid credit cards. Give a gift that is fun to give and even more fun to receive. Who knows, maybe someday your friend or family member will remember what you gave them and will return the favor and buy you one for the next occasion. Wouldn't you just love that?

Pre-paid Credit Cards Comparison

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Popular Credit Card Offers

			Interest rate (p.a.)	Balance transfer rate (p.a.)	Annual fee	Cash advance rate (p.a.)
	ANZ Platinum Credit Card	A unique platinum credit card offer with a low balance transfer and purchases rate.	0% p.a. for 6 months (reverts to 19.39% p.a.)	0% for 6 months	$0 annual fee for the first year ($0 thereafter)	20.99%	E-mail me this offer
	HSBC Credit Card	A 0% balance transfer, $0 annual fee for life credit card.	17.99% p.a.	0% for 8 months with 2% balance transfer fee	$0	21.99%	E-mail me this offer
	Westpac Low Rate Card	A low rate on purchases, balance transfer and a $0 annual fee.	1.9% p.a. for 9 months (reverts to 13.49% p.a.)	3.99% for 6 months	$45 annual fee for the first year ($0 thereafter)	21.49%	E-mail me this offer
	Citibank Rewards Credit Card - Platinum Card	An extended 15 month balance transfer offer with 20,000 bonus reward points.	20.99% p.a.	0.9% for 15 months	$199	21.74%	E-mail me this offer