Prepaid Plastic Evolving
With speedy technological innovations happening by the second, evolutions occur in the blink of an eye. Take credit and debit cards as an example. You only have to go back as the early 1990’s to find it sometimes challenging to find an ATM in many cities. Credit cards were often very difficult to obtain, and without the internet and the ability to buy so much online, they were not as necessary anyway. It may have seemed advantageous that around the beginning of the new millennium, credit cards became more available to the younger generation, but the advantages became less wonderful as the debt piled up for people who had no real understanding of the pitfalls.
Spend only what you have
Following the lead of gift cards and prepaid phone cards, prepaid Visas and MasterCards started appearing around 2002 or 2003. At first they were hard to find and it took a while to receive the actual card. Because of the fees, they were often only used by someone who had no other option. Now, less than a decade later, with bank fees skyrocketing, the need for plastic increasing and the desire to not hook up a main account to anything because of identity theft, any fees look pretty non-threatening. Even financial experts, who may have scoffed earlier, have become advocates. One well known expert has even been working to get prepaid cards contributing to credit scores as they take a novice on the journey of learning how to budget, emphasizing only spending the money you have.
The prepaid numbers
It is estimated that in 2012 prepaid card holders will load close to $120 billion on their little plastic, paid up-front cards. This is over 50 times the amount loaded in 2007. Even people who have bank accounts find them handy when they realize it is smart to hook one up as the method for an automatic monthly deduction they want to keep separate from their main checking account. And, with banks allowing customers to use even debit cards to go through when the money is not there, overdraft charges often way exceed the potential fees of a prepaid card. Just one NSF charge in a month’s time is likely to be more than all the fees incurred with a prepaid card.
Speaking of fees
The good news is that the fees to manage a prepaid credit card are evolving too. If you do your research, you will find one that fits all you requirements. Look at the perks for the prepaid cards available now from American Express. They even offer a card geared specifically for teens learning to manage their money along with the regular version. Prepaid cards are a great solution for many different situations. The fact that financial experts want them to contribute to your credit score is just one indication that prepaid cards are here to stay for all the right reasons. The evolution may have just begun.
What are your thoughts on this? Do you have a prepaid card? Love it? Hate it?
I like the idea of Prepaid cards! I have never gotten one. But I think they are a idea!
I love prepaid cards. Thanks for the gas card giveaway!!
I have used prepaid cards, I think they are better used and if you can get one that has no fees, they are beneficial than more credit cards, since you know whats on it, and what your limit is! No debt!! 🙂 Thank you soooo much for the gas card giveaway, and good luck to all those who have entered!!
I recently got 2 AmEx prepaid cards (wheelndeal momma turned me on to a great $25 bonus offer they had at the time, thanx!) and I’m loading a little each month until I reach my goal ( I have a treat I’m shooting for, and being on a fixed income it can be challenging to save sometimes). I have the cards hidden away to avoid temptation, and since it automatically loads I can forget about them till Christmas.
A $50 gas card is always a good money saving tip!
Prepaid cards really come in handy– I use them as often as I can
I just got an American Express prepaid card and really happy about, so when I order stuff on the Internet I wont have to worry about anyone having my Bank account!
I also have a prepaid………..only for the reason that is secures my bank infomation. But one thing I do not like about prepaid is the load fee’s and monthly fees. Some waive the charge if you use the card for so many transactions. I try to minimize the fees I pay by loading the most possible to pay only one load fee and make up those transactions by using it for those small purchases …….. like running into Wawa to grab that drink ………. to avoid the monthy fees.
This is great, I love pre-paid CC’s, I think more people should use them and stop making the CC companies rich!
I have recently gotten 2 American Express prepaid cards and a jingit card and I can honestly say it has made getting freebies a lot easier bc you don’t have to worry about whether or not they are going to overcharge your actual credit card and it generally makes me feel safer about buying anything online.
I finally got a prepaid card, happy to be able to order online now, was too nervouse using my checking account
prepaid cards are the best especially for trial pay things on superpoints and inboxdollars. love them im getting this one soon
sounds like a deal!!
This is an awesome idea for kids! Have them learn the value of money 🙂
I have ordered this and can’t wait to get mine!
I use a prepaid card all the time I never carry cash.
I think I need to get one of these !! thank you
Love prepaid cards. I use them all the time!
Great ideas!
Love the no fees on this. I recently got one for my son and a card for myself. Love that I can add money to it from my bank account.
This is a phenomenal idea. I definitely need to do something like this to help control my spending. Cash always burns too fast.
I use to have one when i was teenage it help me mange money i am thinking of getting another one
These are such a great idea for teens w/o a checking account/debit card! Thanks for the great article! (AND reminder to get some!)
Love pre
Love prepaid cards! A great post! (Thanks for the Coach giveaway!)
I have not used any pre-paid cards yet but I’ve used gift cards. If pre-paid cards are as easy to use as gift cards then I’m sure I will like them
Great idea, would like to try them out.
Love Prepaid cards!
what i hate about a prepaid card is that they arent easy for me to use. i have to remember the exact amount left over after each use so that when i charge it i tell them otherwise it tells me overdrawn. Gift cards i love but visa or amex gift cards i do not
I track mine online with no issues, I have one that I use regularly and then one that I leave with a $1 balance for freebies.