Choosing A Prepaid Credit Card By FederatedCreditCards.Com Copyright © 2008

Though the process of getting a Prepaid Credit Card has changed somewhat in the last few years, and is now easier than it was several years ago, there are still plenty of tips we can offer to consumers searching for the best prepaid credit card. Review the tips and information below in order to effectively choose a prepaid credit card that best suits your current financial needs.

Fees are always a big thing to be concerned about. You should ask and make note of initial set-up fees, annual fees, processing fees, monthly maintenance charges, and any other payments you'll be expected to pay. Some cards levy heavy fees so do understand the annual costs before opening the card.

Another concern to address is how many vendors accept the prepaid credit card you're considering. The majority of prepaid credit cards are accepted everywhere that Visa and Mastercard are accepted. However, some prepaid cards are only accepted at a limited selection of vendors; it's important to ask, just in case. Also, ask what the limit is for funds uploaded to the card. The usual limit is around $2,500, but ask, all the same, because there's always that small number of card issuers who have very different terms and conditions than you're accustomed to.

How easy is the process for loading money to the card? In some cases, you can load the card with cash at the retailer that sold you the card, --but in others, it needs to be done with your debit card, electronically. Usually, with this second method, you can do it over the phone, or Internet. If the process is complicated, and inconvenient, then you might want to cross that issuer off your list. Also ask what kind of fee you'll be expected to pay each time you load the card, --usually the fee is under $5, --but ask for the sake of the minority issuers who may charge higher fees.

Although rewards programs are usually limited to rewards credit cards, sometimes, lenders offer prepaid credit cards with rewards programs. Usually these are based on a points system; accumulating points through purchases, that you can put towards your cell phone bill, discounts for travel, or other useful offers. If your prepaid credit card has a rewards program, be sure to ask for all the details of point accumulation. Also, ask whether you're expected to pay a fee for the membership of the rewards program, and if there are any other fees attributed to the offer.

Paper statements are convenient to have for your records, --although this is an electronic age, paper records are still necessary and useful. If the prepaid credit card you're considering doesn't offer statements other than those received by email, then you may want to hold off on that choice. The card issuers that don't offer free paper statements by mail may charge an extra fee for the service, and the idea is to pay as few fees as possible.

Liability protection is an extremely useful addition to your prepaid credit card, and more often than not, you're required to pay a fee for it. Prepaid credit cards currently are more like gift cards, so if you lose the card, or someone steals it, then they have the ability to spend it like cash. On the other hand, if you're getting a prepaid credit card directly from the card issuer, --it will have your name on it, etc., and may or may require a PIN. These are a few helpful barriers against theft, but you should still ask about liability protection. Some issuers do offer this service, but at a cost, and the fees for it may also be recurring. Unfortunately, the best option might be to keep careful track of your card.