Prepaid Cards

Prepaid cards are another way to pay for things. You add money to a prepaid card and use it like a debit card. But you pay very high fees to use a prepaid card.

 

How do I choose a prepaid card?

If you decide to use a prepaid card:

• find out what fees you will have to pay
• see which card has lower fees
• do not buy a card because you like the celebrity who talks about It may have higher fees than other prepaid cards

 

How do I compare prepaid cards to other choices?

Prepaid cards can cost a lot to use. You might want to compare other ways to spend your money.

Choose at least two of each to compare:

• prepaid cards
• secured credit cards
• checking accounts in a bank or credit union

 

For each type of card or account, answer these questions:

• What are the fees? Look for:
  • low activation fees
  • low annual fees
  • low ATM fees
• Will the card help your credit history? Some cards send information to the three credit reporting That might help you build a credit history.
• Does your deposit earn interest? Sometimes you can earn interest on the money you put on a card or in a bank account.

Compare the answers. You might find ways to spend your money that are cheaper than a prepaid card.