Today's lesson, Racism. If you see something written here that you’ve said or done, use it as an opportunity. Take it as a wake up call and make the decision to grow, change and be conscious of your own privilege. Remember, I am not a speaker for the entirety of a people. Use this blog as a reference tool, not as the one and only view on the topic.
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Generally, pre-paid cards are bad. If you can avoid them, do.
Unlike other credit cards, pre-paid credit cards are not going to hurt your credit. The reason so many financial advisors will tell you to stay away is because they are a waste of money. Most (if not all) pre-paid cards have a monthly service fee. Many offer online bill pay but then charge you a fee for using it. When you go to an ATM, there is an ATM fee plus a fee that the card charges for you using an ATM.
Because of the huge surge in people using these cards, there has been a rash of them hitting the streets. They are everywhere. Every celebrity you know has one with their face on it. They all tout about how they are so amazing because you’ll only spend what you have and will never have to worry about overage charges.
Well, that’s super and if it was that simple, I’d be a huge fan. It’s not that simple. You are paying to have a card that you pay to put money on. Think about that for a second.
I haven’t seen every card out there but from the ones I have looked into, there is one that I recommend to those that need to use a pre-paid credit card. It’s the Wal-Mart Money card. They offer VISA and Master Charge cards. The reason I suggest this one is the following:
If this isn’t a card you are interested in but you still need a card, do your homework. Read the fine print. There are a number of these cards that are being watched because of predatory fees. Trust me, you will not be happy if you put $100 on your pre-paid card only to have $80 once the fees have been removed.