March 12, 2009
-
Prepaid Cards (101), Pt.2
Trading penalties for fees.Prepaid card holders may escape the high (or hiking) APRs of conventional credit cards. They won't face all the many penalties and credit score pummeling exacted by ‘unfortunate circumstances' on credit card holders. Unlike credit cards, you won't have your credit limit lowered without your knowing. Money talks – nobody walks. Fill the card with money and it's all yours to use. In fact, very little judgment is placed on prepaid card holders. Both the ‘good' and ‘bad' alike will all pay the same fees.
-
Your cost:
1) Card Activation:
o Wal*Mart/MoneyCard (GE Money Bank): $ 3.00;
o VISA/RushCard (MTT Co.): $19.95.
2) Membership Fee: "Called by any other name...", most of the issuers do charge an ongoing fee every month (or annually):
o Discover: $5/mo. Or $50/yr.
o Wal*Mart/MoneyCard: $3/mo.
o MC/Facecard (MetaBank): Free
o MC/SilverCard (MetaBank): $3.95/mo.3) ATM draws:
o Discover: 4 free/mo. then $0.50/ea.
o Wal*Mart/MoneyCard: $2/ea;
o MC/Facecard: $1.50/ea;
o MC/SilverCard: $1.95/ea.4) Replacement:
o Discover: $ 3.00;
o Wal*Mart/MoneyCard: $ 3.00;
o MC/Facecard: $ 9.95;
o MC/Green Dot: $10.00;
o VISA/(Columbus Bank): $10.00;5) Replenish:
o Discover: $3.00;
o Wal*Mart/MoneyCard: $4.95 (free w/direct dep.);
o MC/Facecard: Free from bank, 2% from CC.
o VISA/Account Now (Palm Desert Bank): $4.95.Just like credit cards, you are advised to shop around as there are vast differences between issuers. Some are low-end while others are more extravagant. Some like direct deposit or have other related contingencies.
-