Archive for January, 2010

Prepaid Cash Cards

Prepaid cash cards are similar to debit cards, however, debit cards are attached to a bank account, while the former are known as nonbanking cards. Simply put, these cards are not linked to a bank account and come with fees every time you have to reload them. There are also ATM fees and several other types of fees. Much like a gift card without the restrictions of store specific cards, these cards can really help a person that would otherwise be unable to do something as simple as booking a hotel room.

One good reason to use prepaid cash cards is to replace the conventional credit card. Avoiding all the nasty pitfalls of unsecured credit and spiralling into the financial abyss. I’ve known a few small business owners who struggled to get enough credit to help them grow their businesses. But being strictly cash made it very difficult to do things like rent a car on a business trip. They finally decided to try a prepaid cash card which helped eliminate that issue while saving the business from extra fees and interest they would have paid with a conventional card. Yes there were a few other small fees involved, but when you add up the savings on interest alone, they were still able to save money.

These cards are available at several financial institutions and carry well known credit card logos as well. They are not covered by the FDIC, however, so one would do well to thoroughly research each institution and the cards themselves before deciding to carry one. This can be done through the Internet by reading a good deal about the various benefits on various web sites to help you make the best choice possible.

This type of non credit spending can be of great budgeting assistance as well. Just like using a conventional credit card, you can get a statement that can help with itemized spending. You never have to worry about over limit spending fees and since the card is prepaid, you know the money is already there to pay for your purchases. No worries or concerns with end of the month payments and no hassles.

Prepaid cash cards can also be the answer for those who need a fresh start with credit but have no ability to get credit. The biggest challenge is that at this time, there are no credit builder programs available with these types of cards making it difficult to rebuild your credit. This is a shame since a person who is able to show themselves financially responsible and has record of such responsibility should be allowed to regain a small credit line.

Again, it is always wise to do your due diligence and research all your choices before making a financial decision. It will be worth counting the cost.

Article by Louis, CardKudos.com

Prepaid Business Credit Cards

What are Prepaid Business Credit Cards?

What are prepaid business credit cards and what types of benefits can they afford you? Credit cards have become a part of daily life for businesses and establishing credit for a new small business has become vital. Unfortunately, not everyone who starts up a new business has a sufficient personal credit history to qualify for a mainstream business credit card with a significant credit line. Prepaid credit cards can be the answer. Keep in mind that there are both benefits and drawbacks associated with the idea of prepaid credit cards. If you want to make the best decisions regarding this type of card, then you’ll have to shop around so that you can make an informed decision. But prepaid credit cards are capable of helping you to build up credit without putting you at risk of falling further into debt, or hurting your credit rating even further.

So what are prepaid credit cards? Prepaid credit cards are essentially like any other type of credit card as they are backed by the traditional credit card companies except that they are completely controlled by the card user rather than by the credit card company. The account for the prepaid credit card is opened with the help of a deposit from the cardholder which then becomes the credit card limit. Whenever the cardholder would like to have more “credit,” they simply make an additional deposit. With a prepaid credit card, you must keep clear records of your deposits and expenditures because if you have a prepaid credit card and you try to spend more than you have deposited to the card, your purchase will be denied. In other words, prepaid credit cards, including prepaid business credit cards, operate a lot like gift cards in that you can only spend the limit on the card and nothing more. This makes these a prepaid credit cards an excellent option for individuals and businesses that are looking to build more credit.

There are numerous advantages associated with prepaid credit cards which differ somewhat from the advantages of traditional business credit cards. For example, in some ways prepaid business credit cards are more advantageous because it isn’t possible to go into debt when using a prepaid credit card for your business, primarily because your ability to spend is limited by the balance on the card and how much has been deposited into it. Another advantage of prepaid business credit cards is that there are no interest charges and you can use these prepaid credit cards absolutely anywhere that traditional business credit cards are accepted. Finally, prepaid credit cards make it possible for you to build credit because the majority of the companies offering them report the payments that you make to the credit bureaus.

Because they offer the same convenience as a traditional business credit card without any of the worry, a prepaid business credit card might be the answer if you are starting a business and have less than stellar credit. All you have to do is shop around to find the one that works best for your business and apply online. Good luck!

For more information about No Annual Fee Cards and Rewards Cards visit Businesscreditcardsource.com

What Are Prepaid Credit Cards?

Prepaid Credit cards work just like a debit or credit card. The only difference is that you pay money onto the card first, spend it, but you will not go over any limit, because the only limit is set by what you prepay onto the card.

Unlike the traditional credit card format, you will not acquire any debt with prepaid debit cards as there are no monthly or interest charges.

To apply you do not have to go through any credit checks so almost anyone will be approved for guaranteed acceptance.

You can use just it like a credit or debit card to pay your bills, shop at the supermarket, buy items online and even withdraw cash from ATM machines. They are accepted throughout the world and come in the form of a Visa, Maestro or Mastercard.

Prepaid debit cards are a good solution if:

1. You are struggling with bad credit. If you are struggling to apply for a normal credit card, but need a Visa, Mastercard or Maestro for everyday occasions, a prepaid debit card is ideal. With no credit checks, everyone has guaranteed acceptance.

2. You want to give a gift of money to someone. Unlike normal gift vouchers, these cards are not restricted to just one store and you can use a prepaid debit card (MasterCard or Maestro) in millions of places across the globe.

3. You are planning on traveling abroad. If you do not want the hassle of traveller’s cheques or carrying around a lot of cash, then they are a good solution. They can easily be stopped or blocked if lost or stolen and you will also be able to draw cash out from many ATMS around the world. Some cards even offer 0% on foreign exchange fees.

4. You want to help younger members of the family learn how to manage their own finances. With more and more Britons facing debt troubles, this can be beneficial in teaching your children that you can easily live life without getting credit. Even under 18’s can apply.

5. You want to separate and organise your finances. You can easily keep track of your spending on things like shopping, luxuries, travel, bills or anything else that you can think of.

6. You are having problems opening a bank account. Most bank accounts will come with a debit card, but if you are struggling with bad credit, you may find it difficult to get one. There are no credit checks required, so you have guaranteed acceptance.

Tips On Choosing Prepaid Credit Cards

There are a lot of choices for prepaid debit cards in the UK and most come in the form of a Mastercard or Visa card.

Each card company will have different features and benefits which you should consider before applying:

Some cards will have an annual subscription fee and some with have higher top-up fees than others.

What are the top-up options available?

Find out if you can top up your card at post offices/paypoints etc.

The more top-up options you have the better.

* Is it possible for you to manage the card online and actually see transactions you have made etc?

* Does the card offer a 24hr top-up service, especially for an emergency?

* What kind of protection do you get from the company?

There are many choices available on the market, the card below is the best choice for the benefits outlined below.

Cashplus Gold Mastercard

More Information

More Information

Prepaid Visa Gift Cards

Prepaid Visa gift cards are a perfect last minute gift idea for anyone on your gift giving list. They’re especially attractive to college students and are a convenient way to pay bills or buy merchandise online. We have used ours to reserve hotel rooms, order homeschooling textbooks, and pay car insurance over the phone. They’re accepted anywhere a debit Visa card is accepted and you can use them to buy items in person or online.There’s no need to send cash or checks to the college student on your gift giving list. Instead, send them prepaid Visa gift cards.  You can actually purchase the prepaid visa gift cards in packs of two – one for you and one for your college student.  If you purchase the gift cards at certain stores, such as Wal-Mart, then you can convert them into a reloadable card.  This means that you can have one card with you and the other card with your student, and you can keep adding funds to the cards.  You can reload the account using your card, but the college student can have instant access to the funds using his card.Another bonus is that you can go online and see exactly how the funds are being used.  You can get an online statement at any time.  Not only will this help you know where the money is being spent, but it will also let you know when the funds are getting low so that you can reload the card again (No more phone calls home asking for money).  Being able to look at the activity on the card is also a good way to discuss budgeting with your college student.Prepaid Visa gift cards make great gifts for teenagers.  They are safer than cash, but teens can spend them however they want.  Teens also enjoy having the feeling of owning a debit card instead of just cash.  They are great Christmas stocking stuffers.  Another fun idea is taking the Visa gift card, putting it in a small gift card box, and then putting it inside of a larger box.  It will certainly keep them guessing.Gift cards can be purchased at most major retailers. They can often be found at gas stations, grocery stores, and discount stores. You can get them in a variety of denominations, such as $25, $50, and $100.Use a gift card for a subscription service, such as Netflix, Gamefly, or other monthly online subscription services.  Again, this makes it an ideal gift for a teenager – just make sure that you have enough on the card to pay for 6 to 12 months worth of the service (You might also want to check with mom and dad to make sure it’s okay if you’re buying it for somebody else’s teenager).Gift cards are a convenient last minute gift idea, they’re safer than cash, and they’re great for all occasions!

Zero Interest Credit Cards

There are many different types of credit cards to choose from including low interest, balance transfer, instant approval, reward, airline, corporate, prepaid, and even student credit cards. Obviously, you consider many factors when determining the best offer for you.
Chief among these factors are all the different rates associated with each offer including the APR (annual percentage rate), the annual fee if there is one as well as other cardholder benefits.
Bear in mind
- Low interest credit cards have either a low APR or a low introductory APR. A low interest rate
credit card can be a good choice for people who tend to either leave an outstanding balance on their credit cards or tend to pay their bills late.
- Low interest credit cards can also help save money by reducing interest and finance charges.
- Cardholders who tend to carry an outstanding balance on a credit card with a high interest rate may also benefit by applying for a low interest credit card for balance transfers. Simply put, with balance transfer credit cards, you can transfer a balance from an existing high interest credit card to a low 0% APR interest rate credit card.
Benefits that 0% cards should include
- There ought to be 0% introductory APR for at least the first 12 months and no annual fee. A typical example would be the HSBC Bank Platinum MasterCard
- special schemes like a rebate program, whereby cardholders earn a cash award that varies according to the amount spent annually. For instance, a cardholder may be awarded a 0.25% rebate for the first $1,000; 0.5% for amounts over $1,000 and up to $3,000; and 1.5% for purchases over $3,000 up to $10,000. An additional rebate may be added for any billing period in which the account carries a balance, so that only those who spend up to $10,000 a year and carry a balance will be able to take advantage of the 2% cash back rebate. A good example of this is the Chase Bank Cash Plus Visa
- If you have a good credit history, the introductory rate for purchases should be long-term, say 15 months.
- Look for benefits like purchase protection, smart card technology, discounts at certain merchants and retailers, a year-end financial statement, and various travel and emergency assistance services.
- Watch out for schemes like optional free rewards programs. For every dollar spent on your card, for example, you earn one point. Earned points can be applied to a variety of services and products. There is no yearly limit or expiration on points earned. As an example, Blue from American Express offers you this benefit.
Looks like a good deal
- Several zero interest cards offer merchandise rewards on items such as toys, DVDs, clothing, jewelry, household items and gifts. You can also receive travel rewards on items such as theme park tickets, hotel stays, and cruises. Plus, of course, there will be 0% introductory APR for a certain period on card purchases and balance transfers.
- There are cards that offer a 0% introductory APR on purchases and balance transfers for up to 12 months, a high credit limit and no annual fees. You can also get a customized card with your business name plus online account management benefits
- Many card companies offer zero interest cards for those with “bad credit”. So you can spend within limits and re-establish your credit. Usually, such cards do not run credit checks and avoid credit turndowns. There is also usually no application fee involved. Moreover, on-time payments are reported to one or more than one major credit bureaus on a regular basis.
- Other cards offer unsecured cash advance loans up to a certain amount. Along with that, there may be offers of “guaranteed emergency cash” that you never have to pay back, and guarantees of no turndowns, no annual fees and no credit checks
However, it is important to read the fine print before you make a decision, so that you aren’t caught in a loophole later!