Me2 Money

Saving money for a house. It's tough, but I will find a way to save $20,000 to $30,000 for a down payment. Follow my blog and see how I am doing. I set the goal and now I must take action.

Friday, April 28, 2006

Pre Paid Credit Cards

I was doing some research on pre paid credit cards. I hate to carry a balance and owe thousands of dollars to the credit companies. I wanted to still be able to have a Visa or Master Card to do simple thing like rent a car. The only option I can think of was a pre paid card. These cards allow you to add any amount you wish on to the card. They do not charge interest for using the card, but I did find there is a catch. The cards here in Canada charge $39.95 to buy the card plus a monthly fee of $5.95 a month for the privilege of having the card. When you load the card there is also some hidden fees. Overall these cards are great to provide away for those who do not want to apply for credit and need the benefits of a credit card.

The downfall to these cards is that it will cost $111.35 for a year. They do add $10.00 to the card on initial purchase. When you think how much you pay in interest on a Visa or Master Card it would cost more for regular credit. If you do online shopping it is also a little more secure then a regular card. If the card gets stolen you are only limited to the amount you had on the card, so if you keep a small balance it is not a big deal. If anyone has any thoughts on these cards please share your opinions.


  • At Wednesday, May 24, 2006 9:39:00 AM, Anonymous Anonymous said…

    This really doesn't sound worth it. I use my credit cards (I have two all purpose, and one that is specific to store) regularly, but I almost always pay off the balance every month. Even with the occaisional rolling over, I only spend about $30-40 a year on finance charges. I think that being responsible with spending your money is much more important than having a credit card which won't charge you interest.

    By the way, the purpose of my credit cards is to improve my credit rating. I had some things that were negative on my credit a few years ago, and using your credit in a positive way is the way to improve it.


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