Prepaid Credit Cards Information

Credit cards are a handy way to pay for things, but not everyone can get a credit cards. Therefore, a prepaid credit card is the alternative. Get the facts about prepaid credit cards.

Prepaid Credit Card Facts

A prepaid credit card is not a debit card. A debit card is usually attached to a savings or checking account. When you make a purchase with a debit card the money comes out of the savings or checking account.

A prepaid credit card allows you to put money on the card. Once the money is used, you can fund the card with more money. prepaid credit cards come with their own set of fees.

Consumer reports published the following about prepaid credit cards:

• Most prepaid credit cards charge an activation fee (ranging from $3 – $99)
• Some prepaid credit cards charge a monthly fee (ranging from $3 – $10)
• Most prepaid credit cards charge ATM fees (ranging from $1.50 – $2.50 per/transaction)
• Some prepaid credit cards charge an inquiry fee (ranging from $.50 – $1 per/inquiry)

Prepaid Credit Cards Information

If you are trying to rebuild your credit by using a prepaid credit card may sure your prepaid credit card is reporting you credit history to the 3 major credit bureaus. Some prepaid credit card companies do not report to credit bureau agency. Therefore, your credit history will not change. The major 3 credit bureaus are Equifax, Experian, and Transunion.

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