Are Free Prepaid Credit Cards Really Free?

Advertisements for free prepaid credit cards abound, but is
there really any such thing? After all, prepaid credit
cards are usually associated with multiple fees. If you've
been looking for free prepaid credit cards, there are some
things you need to know before taking the plunge.

1. Nothing's Ever Really Free

The first thing you need to understand when it comes to
free prepaid credit cards is that nothing's really ever
free. Sure, you might not have to pay an activation fee or
there might not be a monthly maintenance fee, but that
doesn't mean you won't have to pay transaction fees or
reload fees.

When looking at free prepaid credit cards, you need to look
closely at the terms and conditions of the cards. What a
credit card company thinks is "free" might not be the same
definition you had in mind.

2. Assess All Of The Fees

As I said before, free prepaid credit cards aren't really
ever free. There is always some sort of fee involved.
Because of this, when you're shopping for free prepaid
credit cards, you need to look at all of the fees they
could posisbly charge.

Confused?

Here's an example. Let's say the prepaid credit card you're
looking at doesn't charge a set-up fee, but charges a
monthly fee of $5.95 and a transaction fee of $1 each time
you use the card. If you use the card 10 times each month,
you're paying $15.95 per month for the card. On the other
hand, a prepaid credit card that charges a $9.95 setup fee
with no monthly fee and no transaction fees will cost you a
lot less in the long run.

Starting to see the picture?

This is why it is so important to understand all of the
fees involved when looking at free prepaid credit cards.
Not just the fact that there are no initial set-up fees.
The companies offering free prepaid credit cards need to
make their money somehow, and it's not beneath some of them
to sneak the fees in where they think you won't be looking.

3. Hidden Fees

Some free prepaid credit cards are really sneaky when it
comes to tacking on extra fees. For instance, you may think
you're getting a free prepaid credit card that has a low or
no monthly maintenance fee, but you are suddenly surprised
with a $20 "fullfillment" fee for shipping and handling.

A word to the wise -- read ALL of the fine print when
applying for free prepaid credit cards. In the prepaid
credit card world, what you don't know CAN hurt you.

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