Pros And Cons Of Prepaid Credit Cards
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There are a number of ways to get cash in a pinch, even if you have less than stellar credit. One popular way to access needed money, as well as restore your credit rating, is through a prepaid credit card. There are a number of these products available today, helping you choose the best deal for your needs.
However, is a prepaid credit card the best choice for your financial crunch? Read on to see if this option is the right one for your specific situation.
What is a Prepaid Credit Card?
Pros And Cons Of Prepaid Credit Cards
A prepaid credit card is a card that requires a deposit in an account that is used as collateral for the credit amount. For example, if you want to make a $500 purchase using your prepaid card, you must first deposit $500 into an account connected to the card. In some cases, the company that issued the card will allow you to deposit additional funds to get more credit on the card. Some even provide additional credit above the amount deposited into the account for customers in good standing.
These cards are issued through a variety of banks and credit companies, allowing you to shop around for the best offer. Most will charge a fee to establish the account and may also charge customers to use the card or deposit additional funds into their account. Some banks also charge a fee to apply for the account or an annual fee to keep the account open. Because the fees vary widely, it is a good idea to shop around for the best deal before selecting a company.
Benefits of Prepaid Credit Cards
Pros And Cons Of Prepaid Credit Cards
Most people open a prepaid credit card because their credit ratings do not allow them to have traditional credit accounts. This card can be used to book hotels and rental cars, just like a regular credit card. In some cases, prepaid accounts can also be used to help a person reestablish credit after going through a bankruptcy, foreclosure or other situation that was detrimental to his credit rating.
Disadvantages of Prepaid Credit Cards
While there are numerous advantages to applying for prepaid credit cards, there are also some disadvantages with these accounts, including:
It can be difficult to find a bank that offers prepaid credit cards in today's economic climate, limiting the competitive edge and choices for customers.
Prepaid cards are not accepted through all merchants due to the risks that may accompany them (when the money is depleted from the account, the credit card bills cannot be paid).
There are often significant fees involved with establishing these accounts, making them expensive for customers who are already in a tight financial bind.
Customers must follow their accounts online to track spending and current account balance.
While prepaid credit cards are a good choice for many individuals today, they are not right for everyone. Some may find that an emergency loan or line of credit is a less costly way to get much needed cash quickly. It is important to understand the basics of prepaid credit cards, as well as other types of emergency loan products, to determine which solution will be the best choice for you.
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does anyone know about 1st financial bank students credit card? is it good or bad?
I’ve had them 6 years, and no complaints. Their customer service is fairly decent, and they’ve never done anything tricky/shady. Nothing out of the ordinary, and I dont pay any annual fees or high interest rates– mine is around 16% which as cards go (and since i got it when I had no credit history) is not too bad. There’s definitely lower out there, but if you’re starting out that’s a pretty good rate. (Dont know if the terms have changed since i signed on though!!)
Should I apply for a 1st Financial Bank credit card?
No application fee,
No annual fee,
No interest charges,
(0% APR fixed) on purchases up to $250.00.
Since I will be a college student soon, what the hell right? I should get an “emergency” credit card. The downside is if you miss your payments “as low as $10 per month on balances up to $250 a month” they throw a 23.95% interest rate at you… What the hell?
I don’t know if i should do it. Can someone please explain this to me, in ENGLISH, no high term-business vocabulary to ensure I understand this coherently; what does this means and what consequences do i face?
I have 1st fiancial bank and I have had them 7 years and always been happy. Yes, if you default on ANY part of the agreement (late payment, overlimit, etc) you get the default rate- but guess what? ALL credit cards do that. It should go back down if you’re good for 6 months.
Tell them you are a college student– they should be more lenient on application requirements.
Be careful not to charge too much. To help your credit score most, you want to stay below 25% of your limit.
NEVER use every last dollar. If the interst gets tacked on at the end of a billing period and puts you over your limit, you get hit with a $35 late fee– and that high APR rate. That’s how ALL Cc’s work.
best credit card to use if…?
Ok, so Im a college student, a junior. I do have a student credit card from 1st financial bank usa, they have raised my limit once in the 2 years ive had it.
I tried looking at my free credit report online but i didnt find it very helpful, didnt tell me if my credit was good or not. Just said i had one installment loan open(my 28000 college loan) and one revolving loan(my 1stfinancial credit card, 60% used). I have no inquiries and no delinquencies.
I need the credit card to pay for a $2,500 student trip to Spain. I will be able to pay it off in 6 months, but the program requires the fee up front. Would my credit score be at least fair, and should I try to open a new student credit card, or just a regular one? and is it easy to get a limit of at least $3,000? my current one’s limit is 1500…
i said i was a student. there is not such thing as 2 part time jobs, i have school to go to. In the end, the actual amount i need will probably be more like, 1800 because i do have some money to put towards the trip. my current card gets above minumum paid each month, the only reason its so high is cuz i had to pay for school w it since i was short on money at the time.
1st Financial Bank Credit Card?
I applied for a Credit card from them and was wondering if anyone else has this Card 1st Financial Bank Master Card.
I haven’t activated it yet, before I do I just wanted to get some input on wheter they are a good card, to be a college student they gave my a $1000 limit.
If there are ANY start up/annual fees…..don’t do it!!!! Learn about Universal Default……and watch the interest rate….and obviously, don’t carry a balance – EVER…..