I Hate Prepaid Visa Cards
I’ll never buy a prepaid balance credit card!
I was recently given a thank you note with a prepaid balance card inside. It’s been nothing but a pain in the neck! Now I appreciate the fact that someone wanted to give me one. I just don’t think they’d ever used it. This particular card is loaded with fees. Many prepaid cards are and each has its own set of charges. Mine arrived with a balance much lower than what it said as inactivity fees had reduced its value. I’ve tried using it several times and it’s been declined. I’ve had to call to try to reactivate it but it still doesn’t work. I know it’s the thought that counts right?
I’ve since learned that these cards are very costly and for people with damaged credit. The Consumer Financial Protection Bureau designed regulations to make them safer and less costly in 2019. Really? Some come with signup fees, monthly fees, individual transaction charges, and ATM fees. If you receive one, use it quickly to purchase something you know you won’t be returning. Buy groceries or gas. Some suggest going to Amazon and buying an e-gift card for the exact amount on the prepaid card. Prepaid cards don’t build credit or control your spending. If stolen or lost, you have no way to cancel them and get your money back. Long ago we were told that when giving, always err on the side of generosity. That doesn’t mean you have to spend a lot of money. It just requires some time and thought – which a prepaid credit card does not meet either criteria.
Now if you’ve been blessed with My MoneyLife, I invite you to discover the Crown Stewardship Podcasts. They focus on helping you find freedom in your finances and career. You can subscribe on Spotify and iTunes, or listen at Crown.org.