This is the first in a series of articles discussing PRE-PAID CREDIT CARDS.
Article I will help define and recognize exactly what Pre-Paid Credit Cards are and what they consist of.
Article II will discuss the numerous problems consumers like yourself may encounter with these Pre-Paid Credit Cards, many of which are hidden from the consumer.
Article III will discuss Solutions and Trends concerning Pre-Paid Credit Cards
ARTICLE I: WHAT ARE PRE-PAID CREDIT CARDS AND WHERE DO THEY COME FROM
Pre-Paid Credit Cards are everywhere and easy to get. Why? Because they are everywhere and anyone can buy one. You don’t need credit, a job or common sense. All you need is cash. That is why you see them in every pharmacy, supermarket, convenience store and just about any store that can stock them.
They come in denominations of $25, $50, $100 and even as high as $500. Usually, they are re-loadable with cash at most stores that carry the cards. And, you do not need a bank account. That is very important, because many consumers in debt have either closed their bank accounts, or their bank accounts have been closed by the bank, or are afraid to leave any money in an account that may be restrained by a creditor.
So, what you have is a huge demand from consumers who feel they need a credit card, but have no ability to obtain one other than by paying for a Pre-Paid Credit Card. And, there is no risk on the part of the business selling the card since it is paid in cash, in full up front.
Let’s take a look at where these cards come from. There are 2 major groups selling these cards:
1. Major institutions such as Mastercard, with names such as the Millennium Advantage Prepaid Mastercard, MiCard Prepaid Mastercard and the Silver Mastercard.
2. Others: a host of companies over the last 10 years have started offering such cards simply by opening their doors and selling to retailers.
SO WHAT’S THE PROBLEM?
THERE IS VERY LITTLE REGULATION IN THIS INDUSTRY!
That’s right. If you thought that credit cards trample over consumers after reading some of my prior articles, you have seen nothing yet.
Article II of this series will reveal the fees and expenses included in these Pre-Paid Credit Cards.
HINT: DON’T BUY ANY UNTIL YOU READ PART II AND III OF THIS SERIES.
Related posts:
- Watch Out For Last-Minute Changes On Your Credit Cards Congress passed the Credit Card Accountability, Responsibility and Disclosure Act...
- Credit Scores And You – Part I This is the first in a series of articles concerning...
- Credit Scores And You – Part III This is the 3rd article in a series of 3...
Related posts brought to you by Yet Another Related Posts Plugin.
