Shebudgets
For some, the idea of walking around with a card with near-endless credit can be a little daunting. Some of us have a hard time controlling our spending and some of us just don’t like the idea of essentially walking around with thousands of dollars in our pocket that can be compromised at any time.
For this reason, prepaid credit cards are becoming more and more popular with each passing year among those who wish to order things online or give gifts with cash value without actually using a traditional credit card. While every individual has their own wants and needs, it’s fair to say that some prepaid credit cards are simply better than others. Here are ten of our favorite prepaid credit cards going into 2016.
1. Mango Prepaid Debit Card
Don’t let the name fool you, Mango is a prepaid Mastercard debit/credit hybrid capable of online purchases and most everything a normal credit card can do.
Why It’s Great
Being a credit/debit hybrid, Mango offers a savings account to its users with a very nice interest rate. While not the first thing on the mind of credit card holders, this is certainly a nice added bonus to loyal users. It also allows a maximum card balance of $10 000 and a daily cash deposit limit of $1000, making this card one of the heavy hitters in the prepaid credit card industry. Mango also offers excellent customer support as well as a smartphone app with an ability to make bank transfers, making it one of the most convenient cards out there. Better yet, it offers Paypal compatibility, something you don’t see a lot of with these types of cards. Its lack of credit checks also helps its case by making it easily available to anyone.
Drawbacks
Unfortunately, while online purchases are a breeze with this card, users are unable to pay bills online with it. If this is your intention, you may want to look elsewhere. It also doesn’t offer a rewards program like many traditional credit cards do. Users aren’t able to raise their credit scores with this card due to its credit/debit hybrid status.
Conclusion
Unless you’re looking for a prepaid credit card exclusively to pay online bills with, you really can’t go wrong with Mango. It’s optional savings account has such a high interest rate that more than makes up for its lack of rewards program, quite possibly netting users more in the long run. I’d recommend this card to anyone looking for a safe, solid means of making online or in-store purchases.
2. Kaiku Prepaid Visa
Kaiku is a prepaid Visa marketed toward those who want a cheap, low maintenance card. It’s accepted anywhere Visa is accepted and offers little to no trouble in the way of usability. It is part of Allpoint ATM, with tens of thousands of no-fee ATMs across the globe.
Why It’s Great
It has low fees. In theory, a user could get by paying a couple dollars in fees a month while still making the most out of this Visa. Much like Mango, it is a credit/debit hybrid which is great for parents to give their children without actually opening a bank account. It has a convenient smartphone app for easy payments as well.
Drawbacks
While it has low fees, don’t expect to cash out on this card just yet. Kaiku offers no rewards program and, despite its hybrid status, offers no savings account. Users are unable to get rewards of any kind with this card. Because of its hybrid status, users are not able to (re)build their credit scores with this card.
Conclusion
If you’re looking for a cheap, easy-to-manage card, this is for you. It’s a great way to make credit card purchases without worrying about racking up fees. For big spenders looking to cash out on rewards; however, this may not be your best option.
3. American Express Prepaid Card
We’re officially out of the realm of debit/credit hybrids. The American Express Prepaid Card is a 100% prepaid credit card. It doesn’t come with any optional bank accounts, and users are able to change their credit rating with this card.
Why It’s Great
Building up your credit with this card is easy. It’s a barebones prepaid credit card with all of the perks that brings. It’s simple, it’s easy to load and it comes with little commitment. This card also comes with one free ATM transaction per month, which is great for those who rarely use ATMs. ATMs aside, it’s also great in the fee department with low monthly fees outside of ATM transactions.
Drawbacks
If you do use ATMs on a regular basis, the above no longer applies. At $2 per transaction after the first time each month, the cost of ownership can rack up pretty quickly with this card. Also, while this card is usually user-friendly, this doesn’t apply to those without a bank account to load the card with. Without a bank account, this card is useless.
Conclusion
If you have a bank account and merely want a prepaid credit card to use for online purchases while simultaneously building credit, this card is great – you’ll have next to no fees and owning the card comes relatively easy on a month-to-month basis. If; however, you want something for in-person use, this card may not be for you due to ATM fees. The same is true for those with no bank account – this will not replace a standard chequing account by any stretch.
4. Green Dot Prepaid Card
Another simple, easy-to-use, prepaid credit card. Green Dot primarily acts as a prepaid card/online service, without direct ties to any specific banking corporation.
Why It’s Great
With the Green Dot card, saving money is simple. For starters, users who order their card online aren’t subject to any sort of activation fee. Monthly maintenance fees are also waived if a user either loads $1000 or more onto their card over the course of any give month or makes 30 monthly purchases. And no matter the card balance or frequency of usage, there are no ATM fees.
Drawbacks
If you don’t use your card in a way which waves your fees, you may find them a bit of a burden. In theory, a casual user who doesn’t get their fees waived can pay up to $10.95 in monthly fees. While not a huge amount, this just doesn’t make sense for users who use their card on an infrequent basis.
Conclusion
If you plan on using your card a lot or plan on keeping it loaded above $1000 at all times, the Green Dot Prepaid Card can be a great way to go about mitigating fees. But for casual users it can be somewhat expensive to own.
5. Suze Orman’s Approved Card
Another bare bones card (even more so than Green Dot’s card), there’s not a whole lot to say about this one. It’s basic, it works and it has low fees. Let’s keep this short.
Why It’s Great
It doesn’t matter who you are or how you use your card, you’ll be paying the same low monthly fees as everyone else. Users don’t need to worry about minimum balances, purchases or ATM usage. Everyone gets the same low monthly maintenance cost.
Drawbacks
Paying the same low fees as everyone else isn’t such a good thing if you’re an overly conscious user. Unlike many cards of it’s type, this one doesn’t offer ways to get out of its monthly maintenance fee, no matter how low that may be. Use your card any way you want, you’ll still be paying $3 on a monthly basis.
Conclusion
The phrase ‘set it and forget it’ applies here. There are virtually no penalties to using this card in any way you wish. Unless you’re diligent about doing everything you can to steer clear of monthly fees, this is the card for you.
6. American Express Bluebird Prepaid Card
Unlike other cards of its type, the Bluebird Prepaid Card offers an extensive list of rewards and perks – more so than most traditional credit cards, in fact – appealing to those looking to replace their other credit cards and loyalty cards outright.
Why It’s Great
The perks with this card are unlike any other prepaid credit card to date. Roadside assistance, purchase protection and discounts to a variety of events (sports, concerts, etc.) are just a few of the benefits enjoyed by users of this card. The card also lacks any monthly fees, making it appealing to many consumers.
Drawbacks
You really need a bank account to utilize this card as it can only be loaded through direct deposit or different bank account (which you own, of coarse) altogether.
Conclusion
This is arguably the best prepaid card out there for those looking to replace their traditional credit cards. As long as you have a bank account, this card is great for building a credit rating and getting any rewards you can think of all while paying no fees. It’s a great prepaid credit card all around for the casual user.
7. NetSpend
NetSpend is a prepaid MasterCard with the purpose of (you guessed it) online purchases in mind. Being a MasterCard, it is accepted virtually everywhere and is great for casual consumers looking for an alternative to traditional credit cards.
Why It’s Great
With the NetSpend prepaid card, adding money is easy. MoneyPak, bank transfer, Western Union and direct deposit are all accepted by NetSpend. This is another set-it-and-forget-it type card, making it easy for all users, no matter their financial institution. The $15 000 limit also makes it great for big spenders.
Drawbacks
You’re not really getting any perks with this card outside of its gigantic limit. Rewards programs aren’t offered with this card, neither are discounts of any sort – forget roadside assistance. If you’re looking for a card with some attractive rewards, this isdefinitelynot the card for you.
Conclusion
If you don’t care about rewards or having no fees but simply want a prepaid credit card with a high limit, this is the card for you. I wouldn’t recommend replacing any credit/loyalty cards with NetSpend, but it can be a great addition to the big spender’s arsenal. Especially with frequent, large, online transactions.
8. AccountNow
AccountNow offers prepaid Visas and MasterCards based upon user preference. The cards they offer are a little offbeat with less-than-typical rewards. It comes with a high maximum spending limit and is great for online purchases.
Why It’s Great
For starters, both prepaid Visas and prepaid MasterCards offered by AccountNow have the same features, leaving things completely up to user preference. Also, the daily spending limit is huge. The daily maximum spending limit is $1500, making it great for big in-store spenders. For online buyers; however, things get even better. There is currently no spending limit for online purchases, meaning users can buy as much as they want through online stores on any given day. For the socialites out there, AccountNow offers users $20 every time they refer a friend to the service.
Drawbacks
Unless you reload your card exclusively through direct deposit, you are allowed one free chat with customer support a month – after that, you have to pay for more calls. To me, this is a huge turnoff. If I’m using a premium service, I expect customer service calls to come with that for free. So, unless you plan on figuring things out yourself, you may want to stay away from AccountNow in favor of another prepaid credit card on this list. It’s also worth noting that this card comes high in fees (including a 3.5 cent international fee on purchases), making it not so great for the fiscally conscious.
Conclusion
If you’re purely interested in large online transactions and nothing else, this card may suit your needs. If friends look to you for advice and you find this card to be worthwhile, you can also cash out on that advice. But if you don’t fit into either of the above categories, the lack of free customer support may not be worth it.
9. Vision Premier Prepaid Visa
The Vision Premier is a prepaid credit card marketed on convenience and ease of use. It also offers an optional savings account (although it is not a debit card) in which users can sign up for automatic payments, depending on what they choose to opt for. It’s the closest thing to a credit/debit hybrid without actually being anything but a credit card.
Why It’s Great
Users can opt for automated text messages informing them of their balance, saving them from having to check up on it frequently. Vision Premier also sends its customers email messages informing them of any newly made purchases, giving them more security over their account through early fraud detection. It also offers 1% cash back on fuel at the pump and comes with free roadside assistance – the perks are pretty good with this card.
Drawbacks
With a $2.50 ATM fee, those who are good friends with their automated teller might not appreciate what this card has to offer. You also won’t get any of the aforementioned perks, such as roadside assistance, unless you find yourself reloading your card on a frequent basis.
Conclusion
For consumers who tend to steer clear of ATMs while using their card regularly, the Vision Premier will work just fine. Doing so will offer some nice perks while minimizing fees. While not the best card out there, it certainly deserves number 9 on this list, mostly due to the convenience factor of its automated texting and emailing.
10. READYdebit Platinum Prepaid Visa
The READYdebit Platinum is – in contrast to its name – a prepaid credit card which revolves around consistency in fees, no matter one’s usage. While it comes with a pretty large dose of month-to-month fees, users aren’t penalized for excessive usage or low prepaid balances.
Why It’s Great
If you’re the type to pay no heed to card penalties and find yourself with a hefty bill at the end of the month, READYdebit may be the answer to your problems. While it comes with a fairly high (about $15) maintenance fee, secondary cards, transactions and pretty much everything under the sun comes without fees, making it great if you’re paying over $15 in fees on your current card.
Drawbacks
Owning a card like this is sort of like having group health insurance. If you’re generally very conscious of avoiding fees and currently pay under $15 a month on your current card, you’ll only be losing money by switching to this one.
Conclusion
If you’re okay with paying a (for the most part) flat rate on your card, the READYdebit will give you freedom to do whatever you want. If; however, you’re more conscious when it comes to avoiding fees, by switching to the READYdebit, you’re basically just paying fees for the former group.
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