Credit Card Insight

Prepaid Visa Credit Cards

More and more people are seeing the benefits of Prepaid Visa Credit Cards. They are great to get for your teenagers, giving them an allowance on their card, teaching them how to manage their money and be able to track their purchases and expenses. There are many companies now that are using them for payroll as well. These are great for giving as gifts, this is a gift that anyone and everyone will love to receive.Now, so far, I have mentioned why they are so popular, but they are not all sugar coated.

2. The Fees Vary – Not all prepaid Visa credit cards will have the same fees, you need to compare these fees and be aware of any other costs involved. There may also be a ‘monthly maintenance’ fee, then there are those who charge a fee for each use.

3. Do Your Research – As you are looking for prepaid Visa credit cards, look for those that charge a one-time fee upfront, or a maintenance fee if you don’t use the card for over six months.

4. Be aware that Visa is not accepted Everywhere – There are some companies, such as Avis Car Rentals, will not accept prepaid Visa credit cards, and there are a few gas stations that don’t take them either. Ask before you booking a car or hotel room if they take prepaid Visa.

5. Does Not Rebuild Your Credit - Secured credit cards will help you to rebuild your credit score, but a prepaid Visa credit card will not. The companies do not report your account activity to the credit bureaus which would help your score. If you want to improve your credit, you need a secured credit card instead or in addition to this card.

6. Benefits – There are some of these cards available that don’t charge the high fees, and these cards do make great gifts and work great for shopping on the Internet without having to use your actual credit card number.

Is a Prepaid Credit Card Right for You?

As you can see, prepaid visa credit cards aren't the perfect solution for every every situation, but you can have some perks by finding the right one. If you do want to obtain a prepaid credit card, compare all the cards that are available, look over the terms carefully, and choose the one that works best for your needs.