Gift Cards With A Twist

by Michele Cheplic | More from this Blogger

27 Aug 2006 02:35 PM

Are you dangerous with cash? Do you find yourself watching it fly out of your hands as soon as you get it? Well, you aren't alone... and help is on the way.

Prepaid debit cards. They're like gift cards with a twist. Rather than tempt yourself by carrying wads of cash around, you can opt for a reloadable, prepaid debit card. It's similar to a traditional debit card, but it is not linked to your bank account. Another bonus: you determine the amount of money the card carries.

I visited the NetSpend website (one of the banks and private companies issuing the new cards) and found a litany of reasons why someone would want to obtain the new tool, including using it as a way to monitor your teen's spending. The company claims that the card is "ideal" for parents sending their kids to college. What's more, if you are a self-professed shopoholic the card allows you to control your spending. The company also says the cards carries the same protections as traditional credit cards and are available at various locations across the country.

Naturally, with any product, there is a flip side to the prepaid debit card. Convenience comes with a price and before you run out and get your own card consider this: the fees card companies charge add up fast. Basically, you pay a fee to activate the card (roughly $10), and then you are also required to shell out another $10 per month for unlimited transactions. And, in some cases you may also have to fork over money for reloading fees, ATM fees, and postage fees.

Before deciding if the card is right for you experts recommend that you "compare the cost of this product to the cost of a bank account and see how much it's going to cost for you." If you are someone who suffers from bad credit this card may be a good option-as an alternative to a credit card.

Learn more about Michele Cheplic

Michele Cheplic was born and raised in Hilo, Hawaii, but now lives in Wisconsin. Michele graduated from the University of Wisconsin-Madison with a degree in Journalism.

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Bonnie Sayers (1298) 16 Sep 2006 05:57 PM

I got something like this at Ace where I do the quick payday loans. I did not want to have to drive to bank to deposit money with two kids in tow and the gas prices - all to make a payment over the phone for my auto insurance so I paid the $10 for the card and then they take like $2 out for each usage.

I would not recommend these to anyone trying to improve their credit.

Michele Cheplic (37339) 16 Sep 2006 07:20 PM

Thanks for the tip Bonnie!