About Kathryn Nye Expertise I can answer questions regarding household budgeting, frugal living, debt repayment strategies, debt reduction, collection laws, specific budgeting snafus like reduced income or medical bills or utility problems, budgeting for the self employed or seasonal worker, meal planning, etc. I pride myself on honesty, so if you can`t handle the truth, I am not the right person to ask.
Experience I am a certfied credit counselor with an accredited credit counseling agency and I have operated my own website on this subject since 1996. I am a regular forum leader on the message boards of several major internet websites.
Publications My writings and website have been featured in many ezines and newspapers across the United States. The most recent references were in the Arizona Republic and on the Chick Click website. Many references to my site are in the About.com network.
Question Hello,
I recently saw an advetisement for prepaid Credit Cards. From what I read I see that its basically a debit card. My question is are they're any risks associated with pre-paid credit cards? They do require you to give your bank account number I believe, or you have the option to direct deposit from your paycheck. What's your opinion on the matter?
Thanks
Answer Andrea:
These can be really good or big scams. They are becoming more and more common now with so many people who have bad credit and baby boomers sending kids off to college.
Here's what to watch for:
-Try to find a big, well known bank that offers them so you know you aren't being scammed by a bogus bank. I think Citibank offers one called a City Cash card. Bankfirst has a line of cards called Euphora Cards. Merrick Bank has a prepaid card. The hot one now is at wiredplastic.com but I don't know what bank backs that one.
-Look at the fine print. Most cards charge a set up fee and maybe a monthly fee. Some charge other fees as well. Make sure you know and look for every fee they would ever charge for anything. You can usually find them in their terms and conditions sections of their websites.
-Find one where you control how they get the money. Not all prepaid cards require direct deposit and most do not require a bank account. Many can be paid through Western Union or through a one time bank draft that you authorize or by simply sending in money directly.
Hope this helps you out. I personally think this is the way it should have always been. Credit card spending has gotten out of control.
