We’ve just seen the Kardashian pre-paid debit card crash and burn due to its outlandish fees. Obviously just attaching a celebrity’s name to something doesn’t make it a good choice. However, you may be in the market for a pre-paid credit or debit card. So how do you choose? Some say it’s just like making a decision about a regular credit card. Here are a few things to look for as well as to avoid.
Make sure you spend time checking out your options. There are numerous cards offered — all with different options, terms and conditions as well as fees.
All of these cards will have fees because this is how the issuing company makes its money. But there are some differences including:
- Charges to open the account
- Monthly or annual charges
- Fees for adding money to the card
Keep in mind that the more fees and transaction charges that are applied by the issuing company, means that you will have less to spend. You don’t want the majority of your deposit to the card eaten up by extraneous fees just for using your card to make a purchase.
Trying finding the card with the lowest fees.
Terms and conditions will also vary from card to card. Make sure you take the time to read all of the fine print for each card you are considering. Here are some things to take into consideration:
- Will you be charged if you choose to close your account and you want the remaining balance?
- What is the highest amount you can load onto the card? If so can the amount increase?
- How is the money deposited?
As you can see, there’s a lot to consider with a pre-paid card. You don’t need a tax calculator, just a little research and thought.