In today’s economy it is hard to keep track of where money goes. Try as hard as one might, due to fees being applied to almost every transaction made on either a debit or a credit card it is hard to manage the exact amount being spent. This can be taken care of however. Prepaid visa debit cards allow users to set the amount of money they want to spend and once that money is spent then the card can no longer be used. This can save the user from overdraft fees or over the limit fees that regular credit cards allow.
Prepaid visa debit cards are great for the person that had has financial difficulties in the past and is looking to rebuild their credit. However you do need to make sure the card comes with a credit building program before applying. The nice thing about these cards is that there is no activation fee with a direct deposit used to fund the card, or only a .95 cent weekly fee if not using direct deposit. So if you plan on using direct deposit it’s like getting a card for free. Not only that but there are also no credit checks done, so there’s no need to worry about the approval even if your credit is not so great.
The prepaid card users will need to deposit a certain amount of money to open an account, and the amount will be the credit limit. It depends on the card holder whether to deposit more money on the card. In other words, you can only spend how much you have got in your card. If you are spending over the limit, the transaction will fail. You can benefit from it since you would not overspend your money. It is indeed a great step to help you to build your credit.
Furthermore, it has no interest charges. Nonetheless, fees will be charged by the card companies when you top up your cards and you may also be charged for not depositing money after a particular duration. Some companies will even set a limit of maximum amount that you can deposit on the card and there must be a minimum balance that you have to always keep in the prepaid card. Before you apply for any card, please ensure that the company will report payments to the credit bureaus, or else you would not be able to build your credit.
The other nice thing about this type of card is that on some of them there is no annual fee for it. For others there is only a $4.95 annual fee, which is fantastic compared to the fees that cards charge. Prepaid visa debit cards can actually save you a lot of fees in the long run because the fees are not as steep. There is no interest rates because a person is not borrowing on credit. They are using their own personal money to fund the card.
Having a prepaid card is important if you have money problems, because you will no longer put yourself into debt by buying something on credit and paying it later. You’ll basically have two choices. Either you buy something and pay it cash or you’ll use the funds deposited on your pre-paid card.