Re: PrePaid Credit Cards?
It is a good question. I have often heard of them, but never seen one either. One would presume that you just need to ask with ordinary credit card firms. I should imagine that most banks will do them too, you'd just to work hard to get throught to the correct person on the telephone hotline...
Have you thought about asking your current bankers? That would be a great place to start, and probably save you time and effort too.
Good luck with it.
Re: PrePaid Credit Cards?
http://www.creditcards.com/prepaid.php
Cally Ive heard of them and it might make sense in your situation.
FBR
Re: PrePaid Credit Cards?
Okay lets try again :P Im Canadian so I need a Canadian card ;) Hehe.. I was looking at those and they are American.
Re: PrePaid Credit Cards?
you mean something like this?
Re: PrePaid Credit Cards?
I found something else thats a little bit better(Thanks Scarlett). I can get a secured credit card through my bank. I just have to give them a deposit and go from there. Which is perfect for me ..
Re: PrePaid Credit Cards?
hey cally,also in t.o you can get one at moneymart..its super easy and does not cost anything.you also dont need any credit checks or anything cause its only your money.
Re: PrePaid Credit Cards?
A prepaid credit card isn't a credit card at all. It's basically a debit card. You can only spend what you've previously deposited.
A secured credit card IS a credit card. It works just like a credit card in every way, except your spending limit will be equal to the amount you deposit in the bank's savings account. They will hold your money in the savings account for a certain amount of time (like 6 months or a year) until you've kept the credit account current for that many months in a row. You increase your spending limit by adding to the savings account. Whatever you charge to the credit card, you'll have to pay back later and the interest rates on those are EXTREMELY high. Can be good for rebuilding credit if you use them right.
Re: PrePaid Credit Cards?
Eek! High interest rates?! So its better if I pay it back like right away I assume? Will it keep the interest rates lower? Im completly ignorant to credit cards and interest rates. I just know im scared shitless to have an actual credit card because i've seen so many people go into major debt from them.
Re: PrePaid Credit Cards?
It is always better to pay back credit cards, any kind, right away. If all you want it for is to buy things online, book hotels etc... just get a checking account with a debit card and life is fine.
As far as being 'scared' of them. Only spend what you have the cash for and no harm can come from a credit. Spend beyond what you know you can afford and you'll be in trouble.
Re: PrePaid Credit Cards?
Well my problem is I dont have any credit what-so-ever. I was a bad girl and fell behind in paying taxes(like 2 years behind). My bank account was shut down about 7 months ago for no activity and overdraft fees(from service fees, I didnt have overdraft protection). I just could never make it to the bank on time to deposit my money and I hated waiting a week for the money to clear when I deposited it at the atm. So I was keeping my money at home in a small safe.
Now im re-opening an account and I highly doubt they would approve me for a card. So I just wanted a prepaid or secured card for booking flights and hotels for travel.
Re: PrePaid Credit Cards?
I'm Australian and there must be something like what I have got available for you? I have a VISA debit card. I use whatever money I have within my bank account yet have the capabilities of a credit card (make online purchases, etc). It's a credit card that has not actual credit on it as I use my own money or whatever money I have in the bank account it is linked with..... I've had it for years now and love it!
It gets you used to the convienance of a credit card without debt. You may want to look into if your bank or any bank near you has one....
Re: PrePaid Credit Cards?
Yes, pay it off as soon as you get the bill. If you pay it ALL off by the due date (usually around 45-60 days from when the transaction took place), you pay NO interest. You don't ever have to pay interest on CC transactions. BUT, if you pay even a day late, or just pay the minimum amount, you'll pay high interest- probably 19-20% annually.
It's easy though, just set up online bill payment with your bank, then when the bill arrives, go online, and pay.
Re: PrePaid Credit Cards?
I like what GCG has! LoL... Im going to the bank on tues so im going to see what I can do.
Re: PrePaid Credit Cards?
- 10k don't know how to put a link hope this works
Re: PrePaid Credit Cards?
Hmm... now I need to figure out what would be better. I SHOULD re-open a bank account and do a secured cc to try and build some credit... bleh... but that money mart thing looks almost to good to be true lol.
Re: PrePaid Credit Cards?
You can even look at the account online..its so easy.
Re: PrePaid Credit Cards?
Most US banks offer free debit cards with their checking accounts - what GCG is talking about. It's called a DEBIT card. It will have a Visa or Mastercard logo and work like a credit card with the exception that it's pulling the money you spend on it from your bank account instead of credit. So you can only spend on the card what you have in the bank. Which of course means you'll have to drag your ass to the bank and deposit money if you want to use and keep the card :P I am sure Canadian banks have similar accounts/cards. Check out your local banks.
Those prepaid "credit cards" work the same way as a bank debit card, except they usually come from check cashing places instead of real banks and they charge more fees than real banks.
If all you want it for is buying or booking stuff online and are that afraid of credit cards, you should probably get the bank account with debit card. You can use it for all the stuff you would a regular credit card, except you won't be going into debt. And most rental car companies won't let you rent cars with debit cards - they usually want a real credit card.
If you are interested in building credit, you could get a secured credit card with a low limit (your local banks probably offer those too if you ask, and they can explain how they work). If you only use it for small purchases and pay off NOT the full balance but MOST of it every month, you will build a good credit reference from that. If you keep your amount owed very low every month, you won't get yourself into crazy debt or rack up crazy interest charges (only small amounts) and the credit reference should be worth it. You CAN rent cars with those because they are real credit cards.
Re: PrePaid Credit Cards?
Oh yeah, the Money Mart thing is a prepaid "credit" card. DEBIT dammit. I just don't know why they insist on calling them credit cards ::)
Anyway, they will charge you a fee every time you deposit money to the account. I don't know if Canadian banks offer free checking the way US banks do these days, but if they do, you're much better off with a bank account. Hell, even if you have to pay a small monthly fee for the bank account, it's still better than having to pay EVERY time you make a deposit.
Re: PrePaid Credit Cards?
Beware with moneymart cards...I did collections on their accounts, and the fees were bad, at best. Much better to get a debit card if you can. Also, if you have less than 20 bucks on your money mart card, you can't withdraw it from an atm, so you're out the money unless you can find something to spend less than 20 bucks (plus fees) on.
Re: PrePaid Credit Cards?
Eek.. well that comfirms it. Im better going with the secured credit card. It only makes sense if I want to rebuild my credit right? No point in keeping in hiding anymore. Time to be a big girl and get some credit lol. Thanks guys!
Re: PrePaid Credit Cards?
Yeah, I am rebuilding my credit with a secured credit card. Just make sure whatever card you choose reports to all three credit bureaus monthly. That will really help you get your credit back together. I too, have never used a credit card before, and have some credit problems. I know that I have to get credit to build credit. Just make sure to charge something every month and pay it off in full every month to avoid the high interest rate. One late payment can really damage your credit, so be sure to pay those bills on time!!
Re: PrePaid Credit Cards?
in the us you can get a prepaid cc from ace cash express, but it cost $10 a month &. i use one for all of my ebay fees & anytime i order something online from a place i'm not familiar with. that way its not connected to my bank account & if it does get hacked all they will get is maybe $20. they can also be loaded from your paypal account
Re: PrePaid Credit Cards?
Quote:
Originally Posted by Cally
Well my problem is I dont have any credit what-so-ever. I was a bad girl and fell behind in paying taxes(like 2 years behind). My bank account was shut down about 7 months ago for no activity and overdraft fees(from service fees, I didnt have overdraft protection). I just could never make it to the bank on time to deposit my money and I hated waiting a week for the money to clear when I deposited it at the atm. So I was keeping my money at home in a small safe.
Now im re-opening an account and I highly doubt they would approve me for a card. So I just wanted a prepaid or secured card for booking flights and hotels for travel.
There is no such thing as approval for a debit card. Its an auto-matic 'here you go' with your checking account.
Re: PrePaid Credit Cards?
Quote:
Originally Posted by Eques
There is no such thing as approval for a debit card. Its an auto-matic 'here you go' with your checking account.
I know.. im talking about being approved for a credit card.