Prepaid Credit Card Guide
What You Need to Know About Getting a Prepaid Credit Card

Prepaid credit cards are fast becoming one of the most popular ways to manage your finances. Those needing second chance checking or bad credit checking accounts will find that getting a prepaid credit card is one of the few guaranteed options available. A prepaid credit card is also an excellent tool to help you teach your teens and young adults responsible money management.

With all the positives of getting a prepaid credit card it is hard to believe there are any negatives, but unfortunately there are. The negatives are not with prepaid cards themselves, but with the fees and marketing tactics of some providers and card sponsors. Below we will address the problems with prepaid cards and we have listed the best prepaid credit card offers available on the right.

Common Misconceptions and Marketing Lies

Do Not Rebuild Credit - Some sites market prepaid cards as a way to rebuild credit, however this is not true. Since you are not extended credit, a prepaid credit card will not help you rebuild or build a credit score.

Prepaid Credit Cards Are Free - While you may get the card setup and shipped to you free, there are charges to use a prepaid credit card. Even when you meet the needed deposit to waive monthly fees, there are withdrawal fees, etc that you will still have to pay. So while there are cheap cards, there is no such thing as a free prepaid credit card.

Fees - The Hidden Costs Of Prepaid Credit Cards

While there is not interest on a prepaid credit card, there are fees that can seriously eat in to your cash. Below is a run down of some of the most common fees.

Card Fee - This is the fee that is charged to get the card and can cots upwards of $19.95
Monthly Fee - All cards charge a monthly fee and again they can charge up to $19.95 per month. Some monthly fees can be waived while others are non-negotiable.
Convenience Fee - What you are charged to use the card. Normally, this fee is $1 per transaction.
Balance Inquiry Fee - A fee charged when you check your account balance via an ATM
ATM Withdrawal Fee - A fee charged when you withdraw money from an ATM
Refill Fees - A fee charged when you refill your prepaid credit card via certain options. This fee can be as much as $5 per incident
Statement Fee - A fee charged to get a statement whether or not it is online or paper. Normally, online statements are free but this is not always the case
Maintenance Fee - A fee charged to maintain your account. Some prepaid card holders do not charge a maintenance fee while others charge as much as $9.95
Optional Fees - Fees that are charged for optional services such as getting a replacement card, bill pay, cash express, etc.

As you can see, a prepaid credit card can be an expensive credit card or banking alternative. You really need to try to look for cards that are inexpensive and practical. Paying $19.95 to get a prepaid credit card does not make sense and is not financially responsible. For this reason, this is why we recommend Account Now for those needing bill pay and Mango for those who do not. These cards are inexpensive and a smart alternative to banking or credit cards.

Best Prepaid Credit Card Offers

Cheapest Option w/o Bill Pay

For those of you that do not need or care about online bill pay, the best option is the Mango prepaid card. The Mango prepaid cars is an excellent card with solid features and the lowest cost to card holders. With a total monthly fee of $5 that will be waived if certain deposit restrictions are met, this is an excellent card. More info

Cheapest Option With Bill Pay

For those who need online bill pay, you simply do not get a better deal than the Account Now gold card. The $10 monthly fee is waived if deposit criteria is met. The online bill pay make the Account Now a perfect second chance checking or bad credit checking account alternative. Get more info here.

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