What are some opinions on pre-paid visa cards?

I was thinking about looking into a pre-paid visa card.I was just wondering what some other opinions are on this. Good things, Bad things. Dad said it might cost a fee to get cash from an ATM but someone else said it will help with my credit when i turn 18?

What are some opinions on pre-paid visa cards?
Pre-paid cards are more about convenience than anything else. I guess they'd be useful if you didn't want to carry lots of cash or if you needed to pay via plastic and didn't have a regular credit or debit card.





There are fees associated with them -- one when you first get the card and put money on it, one when you "re-load" it with money, one if you don't use the card for a certain period of time (usually at least 6 months) known as an "inactivity" fee, one if you use an ATM that is not in the issuer's network, etc. Sometimes you even have to pay a fee if you use an ATM that is in the network. Be sure to read the fine print so you know what fees you will or could be charged.





Unfortunately, this type of card will not help you build your credit. You'd be better off getting a regular credit card with a low limit. Once you use it and pay it off for a while, the credit card company will usually increase your limit. This will help you build good credit.





Good luck!





P.S. Yes, there is a difference between pre-paid and secured credit cards. There was an article in the Wall Street Journal on 9/12/07 about building credit for young people that might be of interest to you. I think you might have to sign up for a free trial subscription in order to read the article. If you go to your library to see the hard copy of the paper, the article is in section D (Personal Journal) on the first page.
Reply:I haven't looked into these too much but I think they sound good. It would defintely help you with credit, you don't have to worry about carrying cash, almost all places take visa nowadays, and it will teach responsibility with money without allowing you to go into debt.
Reply:A secured Visa will help with your credit score. A Visa Gift Card will not. I think that is what these other people are talking about.





There are limits set with a secured Visa as well. And these definitely will help establish credit.
Reply:a prepaid card is just as it says 'prepaid' meaning that when u get it YOU put money on the card before u can use it. they do not do credit checks so earning credit on your credit score will not happen. you can use it at an atm, grocery stores, malls, etc....





its kind of like a gift card, when the money is gone u can put more on it.








all u need is to be 18 years old with a valid government-issued ID