3 Things to Consider Before You Submit That Prepaid Credit Card Application

3 Things to Consider Before You Submit That Prepaid Credit Card Application
Ready to send in that prepaid credit card application?
You'd better think twice! Some prepaid credit cards aren't
everything they're cracked up to be. Want to make sure your
prepaid credit card application is the right one? Here are
three things to consider.

1. What Are They Hiding?

Prepaid credit cards are notorious for hidden fees and
charges. That's why it's so important to know exactly what
you're in for before you submit any prepaid credit card
application. Some prepaid credit cards charge monthly fees,
per transaction fees and even fees for when you don't use
the card at all.

Before you sign any prepaid credit card application, make
sure you know exactly what fees they will be charging when
you get the card. That means reading every line of the
terms and conditions very carefully, making sure you don't
miss a thing.

2. Why Do You Want It?

Another thing you need to consider before you send in a
prepaid credit card application is what you want the card
for. Are you trying to rebuild credit? If that's the case,
you might be surprised to know that most of the prepaid
credit cards out there can't help you do it.

For your credit to improve your credit card company needs
to report your account activity to a credit bureau.
Unfortunately, the majority of prepaid credit card
companies don't do this. If you do want to rebuild credit,
you might be better off with a secured card instead.

Prepaid credit cards are also a problem when booking a
hotel or renting a car. Some hotels and car rental
companies won't even accept them. Others will require you
to charge a large deposit in addition to the estimated
total.

3. Is It a Privacy Thing?

It used to be that prepaid credit cards offered a sense of
privacy. You bought the card and then used it -- no
personal info required. That's no longer the case. New laws
require prepaid credit card companies to collect the same
information that traditional credit card companies gather.

If the only reason you're getting a prepaid credit card is
for privacy, a gift card with a credit card logo is a
better bet. You won't have to disclose personal info like
you do with a prepaid credit card application.

There are indeed many legitimate uses for prepaid credit
cards and they do come in handy at times. I'm not saying
you should throw away every prepaid credit card application
you've considered. Just make sure that a prepaid credit
card is really what you're after. Once you understand
exactly what you're dealing with and what prepaid credit
cards will and won't do, go ahead and send in the prepaid
credit card application that's right for you.

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For more tips on prepaid credit cards, saving money and
avoiding getting taken, check out CreditCardTipsEtc.com, a
website that specializes in providing credit card tips,
advice and resources.
http://www.creditcardtipsetc.com/prepaid_credit_cards/