Prepaid Debit Card Reviews, Complaints, Etc

Tag: tameka riley

  • Consumers Turning to Prepaid Debit Cards Now More Than Ever

    Consumers Turning to Prepaid Debit Cards Now More Than Ever

    With tighter consumer regulations and the low-interest rate environment, banks have had to find new and innovative ways to make a profit. This led to higher fees and the end of “free checking” in some cases.  This move caused many consumers to avoid bank accounts altogether.  According to the October 2011 report “Still Risky:  Bank Fees and Disclosures in the States” by The Pew Charitable Trusts, 89% of the checking accounts offered at the 12 largest U. S. institutions involve bank fees.

    In the wake of the Card Act, a lot of credit card issuers were proactively discarding their customers for becoming too risky.  According to the Federal Reserve Flow of Funds report, the credit growth in America has declined from 9.6% in 2006 during the height of the credit boom to negative 2.2% in 2010 and has remained low ever since.  Now, the market flooded with consumers hooked on the ease, security and convenience of plastic, these customers needed an outlet.  This niche was then filled by a number of companies who created the prepaid debit card.

    Prepaid debit cards allow consumers to avoid both the credit card related fees and interest rates as well as the bank related fees, all while enjoying the convenience and flexibility of being able to access/load their cards at over 60,000 retail outlets across the United States.  Their funds are available in real time and retail outlets keep much better hours than traditional banks.

    According to the Federal Reserve Payments Study in 2010, prepaid cards are the highest-growth noncash payments in America.  Prepaid debit card have quickly become America’s favorite piece of plastic.

    For more information on this story, visit:  http://www.foxbusiness.com/personal-finance/2013/04/23/why-consumers-flock-to-prepaid-debit-cards/

    For more from this author visit:  Tameka Riley’s Author Page

  • Debit Cards: A Growing Threat to the Banking Industry

    Debit Cards: A Growing Threat to the Banking Industry

    With ease of use and widespread availability, debit cards are becoming a growing threat to the banking industry.  Last year, prepaid debit card usage was up 18% while checking account usage plummeted from 92% to 88%.  While users avoid overdraft fees, debit cards are not cheaper than checking accounts.

    Incidentally, scores of users walked away from banks and the fees associated with them, lured by big named celebrity endorsers only to wind up paying even more money.  John Ulzheimer, President of Consumer Education at SmartCredit.com, warns against being tricked into thinking there aren’t any free alternatives.  “Debit card users are lazy,” says Ulzheimer.  “Free checking isn’t gone.  With just a cursory amount of shopping around, you can find a debit card that’s not only free, but will also give you an unsecured line of credit.”

    Gerri Willis of Fox Business Network’s The Willis Report fears,  “People are being robbed blind simply because they like the branding and ease of use that comes with the debit card.”  Over $82 billion was uploaded onto debit cards last year alone.  “Debit cards don’t help your credit score, there are no savings involved, and the users don’t have the opportunity to establish a relationship with a bank,” she says.  “You need access to what the banks have to offer to purchase homes, do business, and even education for your children,” said Ulzheimer.

    Today, many neighborhood stores and markets offer free “cash back with purchase” options at checkout, helping alleviate some of the hits most users take to their wallets, but in the long run, a little research can go a long way.  For more research on the best options for you, visit our in-depth reviews here on bestprepaiddebitcards.com.

    For more information from The Willis Report, visit:  http://video.foxbusiness.com/v/997395602001/millions-turning-to-prepaid-debit-cards?intcmp=related

    or visit :  http://video.foxbusiness.com/v/1559371429001/are-prepaid-debit-cards-mistake?intcmp=related

    For more from this author visit:  Tameka Riley’s Author Page

  • Experian Reporting Rental Payments on Credit Reports

    Experian Reporting Rental Payments on Credit Reports

    In times past, the only time rental history would show up on a credit report was when a property management company would turn it over for collections.  But in December 2010, that all changed when Experian became the first credit bureau reporting rental payments on consumer credit reports.  Not only is this is great news for the millions of displaced homeowners looking to get back into the housing market, but it also gives consumers the ability to benefit from meeting their monthly obligations on time, instead of penalizing the ones that don’t.  This opens up a world of possibilities for millions of consumers seeking to improve their credit rating.

    It turns out, renters aren’t throwing their money away after all.  Making up a large percentage of the population, renters will now have access to the credit products they deserve by meeting their monthly obligations, not just the ones they take out loans for.  The change will have a positive affect for millions of renters including immigrants, students and displaced homeowners.

    Experian collects data electronically from a property management network, rewarding responsible renters and reducing the risks of skips, bad checks, evictions and property damage for landlords and property managers nationwide.

    It is unknown if TransUnion or Equifax will follow suit and begin offering rental payments on their reports, but a recent on eHow.com suggests having rental payments added to all three credit reports is as simple asking your landlord or property management company to report them.

    For more information on Rent Bureau by Experian, visit http://www.experian.com/rentbureau/rental-payment.html.

    For more from this author visit:  Tameka Riley’s Author Page

  • SpendSmart Names Justin Bieber as Brand Ambassador

    SpendSmart Names Justin Bieber as Brand Ambassador

    Bieber Promotes Debit Card via Videos, Social Media

    Would Justin Beiber’s ebdorsement make you want a branded prepaid debit card?  SpendSmart Payments is hoping so.  Its new card features Bieber, its brand ambassador, in a video series called “Real Talk,” that is aimed at helping teens and families develop responsible spending habits.  In the first video, Bieber talks about his upbringing and how he learned to make a budget and save for things he wanted.

    Critics say the card may not be a good deal for young consumers, saying there are better and less expensive ways to educate teens.  Fox News says parents may want to think twice before giving their teen the card.

    The fees associated with the card include:

    • Monthly fee: $3.95
    • Loading charge: One free deposit per month from savings or checking account, $0.75; $2.95 from a credit or debit card
    • ATM charge: $1.50 per withdrawal plus any third party fees; $0.50 per balance inquiry (though balance inquiries online are free)
    • Inactivity fee: $3 if the card is not used for 90 days
    • Replacement fee: $7.95 if the card is lost

    In its brief history, SpendSmart has worked with a couple of different celebrities and has yet to report a profitable quarter since it went public in 2008.  The San Diego-based company won’t comment on the specifics of its deal with Bieber, but sources say it includes a $3.75 million endorsement deal and the option to buy 2 million shares.

    Celebrity endorsements don’t guarantee success.  The Usher Prepaid MasterCard and the Kardashian Kard are proof of that.  SpendSmart’s strategy includes appealing to Bieber’s vast social media following, which includes 37.7 million Twitter followers, 2 million subscribers to his YouTube channel and more than 52 million Facebook fans.  With a following this big, Bieber has a wider reach than some television networks.

    For more from this author visit:  Tameka Riley’s Author Page

  • Pros and Cons of Prepaid Debit Cards

    Pros and Cons of Prepaid Debit Cards

    Don’t believe the hype about prepaid cards. But don’t believe the doomsayers, either

    We live in a world of incessant hyperbole. The latest version of the iPhone? Best invention ever. The current members of Congress? The most corrupt and feckless in history. And let’s face it, advertising and promotion is based largely on inflated claims such as these, and that includes the efforts companies use to pump up interest in prepaid debit cards. To hear card issuers describe them, prepaid cards are the most convenient, reliable and safe financial products ever conceived. But that is, of course, hyperbole. The truth involves a great deal more nuance. There are, in fact, some real benefits, especially for people who don’t have or can’t get traditional credit cards. There are also significant red flags with prepaid cards, ones that any consumer should be aware of. So all hyperbole aside, let’s take a look at a few of the good, bad and ugly qualities of prepaid cards.

    The Upside

    • Easy, easy, easy. One of the main reasons people carry around credit and debit cards in their wallets is because it’s so darn easy to use them. Accepted virtually everywhere – at restaurants, shopping malls and even parking meters – plastic is simply more handy than cash. Prepaid debit cards provide that same convenience, including being able to get cash when you have to have it from ATMs all around the world.
    • Under your management. With features like online account management and email alerts when you’re close to exhausting your available funds, prepaid cards give you easy control over how you spend your money. They’re also simple to replenish via direct deposit or by using a credit or debit card.
    • Web ready. Try logging on to Amazon and buying a book or DVD with cash. Uh, it doesn’t work. Online retailing is exclusively the domain of those who have plastic. Thankfully for those who don’t have a credit card, prepaid cards can be your portal to online purchases.
    • Safety first. There’s no need to walk around with large wads of cash when you have a prepaid debit card. Importantly, and unlike cash, losing your card doesn’t mean the money is gone forever, especially if you report the loss immediately.
    • A snap to get. Unlike credit cards, there’s no credit check if you apply for a prepaid card. Just sign up, fund the card and go.

    The Downside

    Just like any other means of payment, prepaid debit cards possess a number of disadvantages. Here are a few.

    • Fees, fees, fees. Although they vary from card to card, fees are inevitable. Whether it’s a monthly account maintenance charge or getting dinged to withdraw money from an ATM or even to add cash to your card, there’s no way around at least some fees. And if you use your card a lot and its fees are onerous, that amount can pile up quick. Which is why being a savvy, conscientious comparison shopper is vital.
    • Not earning credit. One of the main reasons consumers gravitate towards prepaid cards is because they can’t get a credit card. But relying on a prepaid card will do nothing to help you build the sort of credit history you need to eventually get one. Since the money to fund a prepaid card is, by definition, given upfront, there are no repayments and hence nothing to report to the credit bureaus that track that behavior. If you want to build credit, look into a secured credit card.
    • Not yet ubiquitous. Even though prepaid cards are gaining in popularity, they are not yet universally accepted at all stores. It’s always best to check with a merchant before you make a shopping trip.

  • Dave Ramsey Chimes In On The Rise of the Prepaid Debit Card

    Dave Ramsey Chimes In On The Rise of the Prepaid Debit Card

    One would only need to turn on their television to know that prepaid debit cards are on the rise.  Added to the mix is a growing crop of celebrities endorsing one card or the other.  Prepaid Debit cards are popping up everywhere with uses ranging from tax returns to IRAs, but so are the fees associated with them.

    According to a recent article by Dave Ramsey, depending on your card of choice, you might be charged for any of the following:  buying the card, monthly maintenance, uploading money, inactivity, ATM withdrawal, card decline, making a purchase in-store or online, speaking with a customer service representative, and even using the automated customer service system.  Some cards even charge you $.50 just for checking your balance.  While most acknowledge at least seven different fees, some cards have as many as fifteen regular fees at nearly $3 a pop, these charges add up fast.

    Users are expected to load over $200 billion dollars onto prepaid debit cards this year alone.  Originally targeting people without bank accounts, Ramsey believes most cards are taking advantage of the poor and financially struggling, much like “their destructive cousin, the payday loan.”

    There is simply no substitute for budgeting and smart money management.  Whether it’s a checking account or a prepaid debit card, it pays to shop around.  Here at www.BestPrepaidDebitCards.com, we take all the guesswork out of the process to help you get the best deals available to you.

    Dave Ramsey is the founder of The Lampo Group.  He specializes in counseling families hurting from the results of financial stress and teaches how recognizing money myths and replacing them with truth is a powerful way to take hold of your greatest wealth-building tool:  your income.

    For more from Dave Ramsey, visit http://www.daveramsey.com/blog/pre-paid-debit-card-uprising?et_cid=2450840&et_rid=0&linkid=.

    For more from this author visit:  Tameka Riley’s Author Page

Prepaid Debit Card Reviews, Complaints, Etc