In this article we are going to concentrate on one particular topic and that is prepaid credit cards with no fees. Before we delve into various details about these types of cards, you should first fully understand exactly what prepaid credit cards are and the various types that are available to you. The concept behind prepaid credit cards is quite simple, these are essentially work like a regular credit card and can be used anywhere that these cards are accepted. There is only one difference between the two and that is that prepaid credit cards don’t actually use your credit. When it comes to prepaid credit cards you will actually have to provide money up front before you can actually use the card.
There are essentially two different types of prepaid credit cards. There are secured credit cards which are basically prepaid credit cards that you get from a financial institution such as a credit card company or your local bank and there are prepaid gift cards which are basically gift cards that are provided by financial institutions and have a predefined spending limit that you have paid for initially. These gift cards are an excellent way to securely give money as a gift without having to worry about using cash. The problem with both of these types of prepaid credit cards is the fact that they usually come with fairly stiff fees. This begs the question why would an individual choose a prepaid credit card as opposed to a regular credit card and where exactly can you get your hands on prepaid credit cards with no fees.
Let’s first go over several reasons why an individual would choose a prepaid credit card. When it comes to gift cards the answer to this question is quite simple. These prepaid credit cards are an excellent way to give gifts of cash to individuals without actually sending money. As we all know there are many benefits to using credit cards that cannot be gained through the use of cash. Credit cards can be used to make purchases online, they are also very convenient when you don’t want to carry around large amounts of money. While is very easy to understand why an individual would choose prepaid credit cards when they are being used as a gift card, you may not fully understand why you would need a prepaid credit card for yourself.
Often times those with poor credit or a lack of credit history will have a very difficult time getting accepted when applying for typical credit cards. This is why sometimes a prepaid credit card is the only option available. Other individuals are fully well aware that when they use regular credit cards they tend to overspend. When using a prepaid credit card you cannot overspend as you’re only spending money that you have already put towards that card. This is an excellent way to ensure that you do not fall into debt.
So when it comes to prepaid credit cards there are basically two types one that is distributed as a secured credit card which were choirs you to keep an account with the financial institution with the predisposed amount of money in it and prepaid credit cards that are used to be given out as gifts. Secured credit cards can be used over and over again and, as long as the financial institution reports to the three main credit bureaus, can greatly improve your credit score and help to build a solid credit history. A gift card is usually used as a one time credit card and when the limit has been reached the card is no longer valid.
For the most part, it is almost impossible to avoid fees when purchasing gift credit cards. If anything when purchasing one of these gift cards you will have to pay tax of at least 6%. This is something that is almost unavoidable. So if you are looking for prepaid credit cards with no fees, you will have difficulty discovering us if your idea of a prepaid credit card is actually a gift card.
On the other hand when it comes to secured credit cards it is actually possible to avoid fees. You see many of these financial institutions are aware of the fact that individuals that are looking for prepaid credit cards have a poor credit history and are only searching for these types of cards because of the simple fact that they are unable to wire regular credit cards. Because of this fact they know that you would be willing to pay a fee in order to gain access to their services. It’s very funny that regular credit cards have no fees and prepaid credit cards, a card that you will have to pay for ahead of time, do have feeds.
No matter what type of prepaid credit card you are looking for the simple fact is that if you are desperate or very interested in getting your hands on prepaid credit cards with no fees you will have to do a certain amount of research. Luckily we live in the age of technology and through the use of the Internet you literally will find all the information you’ll ever need on any topic.
If you are still reading this article I could only assume that you have accepted the fact that there are always going to be fees associated with prepaid gift cards. If you are looking for a prepaid card that is actually a secured credit card to be used over and over again and distributed by a certain financial institution that has no fees whatsoever. The only way that this could be accomplished is by contacting various banks and credit card companies and finding out exactly what it is that they have to offer. Another recommendation would be to use these credit cards as a way to build your credit history and your credit score and then attempt to get your hands on a regular credit card. In order to accomplish this you should make sure that the financial institution that you’re getting a secured credit card from actually reports to the three main credit bureaus. This is the only way that using this type of prepaid credit card will help you to rebuild your credit history.
So now when it comes to doing research on various prepaid credit cards from a variety of different financial institutions, there are two things that you should be looking for. The first thing you should find out is if they offer prepaid credit cards with no fees. If they do, they also report to the three main credit bureaus. You should also make sure to find out if there are any other fees associated with this card. For example, think about all the fees that can be associated with the card. Are their monthly fees associated with it? Are there yearly fees associated with it? What are the fees must be paid in order to refill the prepaid credit card? These are all questions that should be answered before you make a decision as to whether or not you actually want to do business with that particular financial institutions.
When it comes to searching for prepaid credit cards with no fees, there are of course the main financial institutions, such as Citibank, capital one, discover and many others. Those fees are the easiest companies to get in touch with, you may have much better luck finding prepaid credit cards with no fees at local and smaller banks. In every town there is at least one bank that is small enough that you can actually negotiate. This may be your best bet to get your hands on secured and/or prepaid credit cards that can be used over and over again without any fees.
For those of you that are interested in getting more information on prepaid credit cards with no fees you will find the contact information for various financial institutions that may be able to help you with your task at hand.
General Account Information
Credit Card Online Support
Lost or Stolen Credit Cards
Outside the U.S.
Customer service 1-800-955-7070
Outside the US, call collect 001-804-934-2001
Rewards Center 1-800-228-3001
Secured Card 1-866-781-9765
Prepaid Card Customer Service 1-866-532-9632
Online banking support 1-866-750-0873
We’re available to help you 24 hours a day.
1-800-DISCOVER (1-800-347-2683) (English/Español)