Credit cards are used for many people in different ways to borrow money quickly because there is no documentation needed (just when you apply to get it). There are different types of credit cards and they are oriented for different customers.
There are credit cards with no interest rate, credit card with rewards and there are prepaid cards. In this article we are going to talk about the best prepaid cards in the market. But first let`s talk about what is a prepaid credit card.
What is a prepaid card?
A prepaid card is issued by a financial institution and it has been secured with a payment before the use of it. They basically have a preloaded fund to make the transactions that the card holder needs.
So, people with prepaid cards will not be borrowing money from a financial institution because they are putting their money to use the prepaid card and they do it to take some benefits of the prepaid cards like rewards or buy online.
Prepaid cards are ideal for those who have no credit history or a low credit score and want to improve it because they want to borrow money from a financial institution and they won`t give money to them until they have a good credit history.
So, those customers will be able to build a credit history and increase their credit score when they use their prepaid credit card but they must use it well. Now, let`s see what are the best prepaid credit cards
The best prepaid credit cards
Choosing “the best prepaid credit card” may be difficult because it is subjective. Some customers will prefer less monthly payment and other may be looking for cash – back rewards or maybe other characteristic. However, let`s see what are cards that are called “the best” on internet and why are they so popular
In first place we have the Netspend Visa Prepaid Card: With this card you will have the benefits of a Visa card, it doesn’t have a monthly fee but you will have to pay a small purchase fee and $2.50 when you use an ATM. This card does not charge an interest rate and you will be able to use the Netspend App to see your account and manage it.
You will also receive text and email notification with every transaction that you made with the card which is important for your security. This card can be used as a regular Visa card and should be accepted as a regular Visa card.
In second place we have American Express Serve Cash Back: This card is one of the best to get rewards because with every purchase you will get a reward. But that reward is expressed in cash back which means that every time that the card holder make a purchase he will get 1% of the amount on cash back.
But, that card charges $5.95 per month (fee) so you should spend at least $595 to cover that fee and have benefits. This card have one benefit of American Express cards which is the protection to your purchases for up to $1.000 if something happens within the first 90 days after the purchase.
In third place we have Green Dot Prepaid Visa: The benefit of this card is that there is no credit checks so your credit history and credit score will not be affected by the use of this card. But, that could be a disadvantage if you are looking to build a credit history using a prepaid card.
This card has a mobile app to manage your account and you will receive texts when some activity in the account is detected. You will be able to use the card around the world but a 3% fee will be charged in foreign transactions.
In fourth place we have Bluebird by American Express: This card is ideal for those who are looking for low fees because it doesn`t have monthly fee, direct deposits don`t generate fees and no fee to load the card in Walmart or with a debit card online. However you will have to pay $5 to have the card if you get it in a retail location. Doing withdrawals with this card is free in MoneyPass ATMs but if you use others ATM you will have to pay $2.50.
In fifth place we have Paypal Prepaid MasterCard: The benefit of this card is the convenience of having access to Paypal platform which is well known these days. You will have no fees if you transfer money from a Paypal account but also there will be no fee if you make a deposit and there is no activation fee.
However, you will have to pay $4.95 per month and $1.95 for ATM fee. You can use the card with foreign currencies but there will be a 2.5% charge. However, this card has benefits like rewards and lower fees compared to other prepaid cards so it is a good option.
So there are different options in the market of prepaid card and choosing the best is difficult. The problem with prepaid cards and cards in general (debit and credit) is that they offer a combination of characteristics that are looking to attend different publics.
So, cards should be classified as the best for a low interest rate, the best for low fees, the best to build a credit history, the best to use foreign currencies and so. They should be classified by categories looking to attend the different needs of the customers. There are many options in the market and people will be able to find the right one for them.