Prepaid Debit Card Reviews, Complaints, Etc

Tag: Prepaid Debit Cards for Teens

  • Celebrity Prepaid Debit Card Smackdown 2013

    Celebrity Prepaid Debit Card Smackdown 2013

    Nobody would argue that hip-hop impresario Russell Simmons is anything but cool. After all, the guy was one of the forces behind Def Jam, the record label that brought us the Beastie Boys and LL Cool J. These days, Simmons is a business magnate whose net worth is estimated to be north of $300 million. And Simmons is looking to add to that sizable fortune by lending his name to a celebrity prepaid debit card called the RushCard. In doing so, Simmons joins personal finance guru Suze Orman and the increasingly notorious singer Justin Bieber in endorsing and promoting celebrity prepaid cards.

    An examination of the fees associated with these three celebrity prepaid cards by BestPrepaidDebitCards.com reveals that it can be a pricey proposition to use star-powered plastic, albeit not always more expensive than average prepaid debit card fees. For instance, while Orman and Bieber charge $3.00 and $3.95, respectively, in standard monthly fees, the tab for Simmons’ celebrity prepaid card is $9.95 – an amount that is more than $5.00 higher than the average monthly fee. To be fair, there are other Rush card offerings with lower monthly fees and may be found in free monthly fees for the Pay As You Go Plan to $5.95 or $7.95 on the Rush Unlimited Plan depending on your direct deposit status.

    In other areas, the fees charged on the celeb-backed cards are comparable, including similar charges for ATM transactions or for putting money into the account (known as loading fees). Consumers should note, however, that although an issuer may not charge a fee to load cash on their card, they may have to utilize third party services which do charge, such as Green Dot MoneyPak or MoneyGram, and fees can range from $3.74 to $4.95.

    An alternative product is Bluebird by American Express, which does not offer star-power, but it does offer great features and very low fees. Still, there’s no getting around the fact that there’s a premium to be paid for associating yourself with a celebrity card. In a hypothetical tally of fees from a month of modest usage of our sample RushCard plan, BestPrepaidDebitCards.com calculated that it would cost a cardholder around $12 per month. Is using a celebrity prepaid card really that cool?

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  • 5 Reasons Parents Should Get Prepaid Cards For Teens

    5 Reasons Parents Should Get Prepaid Cards For Teens

    Along with a driver’s license, a prepaid debit card can be one of the most important pieces of plastic a young adult can get

    Amid all the job losses and bankruptcies, our recent economic downturn has been especially difficult on young people. With a persistently dreadful job market, many college graduates are leaving school with degrees, but few prospects. Thanks to the Credit CARD Act of 2009, those under 21 are also not likely to be entering the adult world with a few years of credit history under the belt; the law prohibits anyone under 21 from getting a credit card unless a parent co-signs or they can prove sufficient income to qualify.

    There are plenty of reasons to cheer this legislation. It’s hard to argue that handing out credit cards to teenagers with no income and no restraint was a good idea. Still, credit cards used responsibly could be a real benefit to young people, ensuring them access to financial resources far from home and (hopefully) teaching vital money management skills.

    Into the void created by the elimination of credit cards for most young people have come prepaid debit cards, which offer many of the benefits of credit without some of the more distressing pitfalls. Designed to work much like a gift card from a supermarket or bookstore, prepaid debit cards allow a parent to fund the card with as much or little money as they choose, and then the teen can spend that amount when and where she likes. Along the way, hopefully, she can learn something about managing finances. Sending a child out into the adult world with a mountain of debt is obviously bad, but so too is letting them loose without any experience with plastic. Getting a prepaid card may be the answer you’ve been looking for – and it doesn’t even require a bank account.

    With all due apologies to David Letterman’s top 10 list, here are 5 reasons parents should hand their teens a prepaid debit card:

    1. It can save money. As in, it can save you money. Have you ever handed your kid a $50 bill for a $30 event and asked for the change, only to be told later that there wasn’t any money left? Once you give your son a prepaid card, he has exactly what you put on his card, nothing more.

    2. It teaches budgeting skills. Think about it. Let’s say your kid is off at college, or even in high school and still under your roof. If you want to teach them that spending decisions have consequences, simply fund a prepaid debit card with an amount you decide is reasonable for a month and step out of the way. Sure, your teen can go out and blow the entire amount in a night. But if you stay strong and don’t replenish the card’s account, they’ll probably do better the next month. Weeks of eating nothing but Ramen noodles can provide invaluable focus.

    3. It also teaches priorities. Ultimately, how we spend our money says a lot about what matters to us in life. And the same is true with teens. By handing over a prepaid debit card and giving them the freedom to choose how to spend it, you are helping them figure out the experiences and material things that really add value to their lives.

    4. Training wheels for credit cards. Unless things go terribly wrong, your teen will eventually get a credit card. Having used a prepaid debit card for a few years beforehand should give them the chops to handle credit. “Prepaid debit cards do offer a safe environment for young people to learn how to transact using plastic. Most young people will eventually use credit cards, and learning about financial responsibility in a controlled environment offered by a prepaid card will likely benefit future credit card users,” says John Ulzheimer, president of consumer education at SmartCredit.com.

    5. It can prevent a financial emergency. Adults of a certain age can probably still remember how we convinced our parents that it was a good idea to get a credit card when we were young. You know, by scaring the heck out of them with tales of losing cash and being penniless in a faraway city. Well, like it or not, the tables are turned and the same story ought to work on you now as a parent when it comes to prepaid cards. But guess what, you were right then and they are right now. Prepaid debit cards, like credit cards, can be cancelled and reissued when lost or stolen in a way that cash simply can’t.

    Of course, there are fees associated with prepaid cards — though the money you lose when your teen forgets to give you change might well exceed those fees. So go ahead and get your teen a prepaid debit card and begin them on their journey towards becoming a financially responsible adult.

  • Prepaid Debit Cards for Teens

    Prepaid Debit Cards for Teens

    Prepaid debit cards for teens are available on the internet and they are in great demand nowadays because so many parents are getting them for their teens. It is actually very easy to apply for these cards because all one needs is a computer and access to the internet. Each person should carry out good research on the various companies which offer these prepaid debit cards for teens before making a final decision.

    By doing this, you will ensure that they get the best prepaid debit card that is most suitable for them. Therefore, after getting an appropriate card, you should read all about the regulations that they will be required to follow and then fill out the forms provided.

    The best part about prepaid debit cards for teens is that there are no overdraft fees, credit checks or activation fees required therefore one gets to save on a lot of money. Moreover, with this card, there is easy monitoring of parents on their child's spending habits. Also, the spending limits are very strict in that, one can only spend up to a certain amount daily and this gives the teen good control in their spending habits.

    Parents like you will be very happy about these cards because you get to know some of the places your child goes to and what they buy. It helps a teenager to learn how to be responsible at an early age when it comes to spending money.

    The best prepaid debit cards for teens are accepted in very many locations around the world wherever Visa and MasterCard debit cards are accepted therefore a teen can use it even when they are away on tour. However, this is also a great advantage because in case of an emergency and they need some cash, you can just load their card for them online and they receive money on their card instantly. There are a wide variety of prepaid debit cards to choose from and they all have different designs whereby one can choose according to their personal preference.

    Another advantage of prepaid debit cards for teens is the fact that the teen gets text alerts even if the card has just a small balance. Moreover, each parent has the ability to set up email alerts and text messaging so as to track their child's spending habits. Furthermore, you can also set up this card in a way that you can unlock or lock your child's access to their account just in case something goes wrong. It is thus a very good idea for parents to get these cards for their teenagers because aside from teaching them about good spending habits, they are able to fund them in case there is an emergency.

    However, the fee charged when one uses these debit card is very reasonable especially since one is not required to pay anything in the beginning. Therefore, one gets to save a lot of money. There are some regular prepaid debit cards that will work for teens (Walmart MoneyCard prepaid MasterCard) and then there are some specifically designed for teens such as the BillMyParents prepaid debit card. It comes with no activation fee, no overdraft fees, and no credit checks.

Prepaid Debit Card Reviews, Complaints, Etc