American Express The Platinum Card*
If youre looking for a premium card with all the perks, youd be hard-pressed to find anything better than The Platinum Card from American Express. The included travel insurance alone is worth a second look, but add to that complimentary airport lounge access with unlimited passes to Priority Pass and Centurion lounges, an annual $200 travel credit, hotel upgrades and Platinum Concierge services, and youve got the key to an upgraded experience. The card offers plenty of Membership Rewards points earning opportunities on dining, travel and everyday purchases, and comes with a sweet welcome bonus. Another advantage of joining the Amex system is that youll gain access to the lucrative Fixed Points Travel program, and youll be able to transfer your points to dozens of other loyalty programs.
What Are The Different Types Of Cards
Here are the four main types of cards youll encounter when looking for a financial card, along with how they work and what makes them unique.
A prepaid card, also called a pay-as-you-go card, is a product that only lets you spend money youve loaded onto it in advance. Instead of borrowing money from a bank that you must pay back later , you are spending your own preloaded money. One of the conveniences of prepaid cards is that they are available almost anywhere, from grocery stores to gas stations, and you can use them anywhere their payment network is accepted.
Here are some of the most common types of prepaid cards:
- General-purpose reloadable cards
- Government benefit cards
A debit card is issued by a bank and linked to a checking or savings account. Each time you use a debit card, you are transferring money electronically from your bank account to pay for your purchase, reducing your bank account balance. You can also use a debit card to withdraw cash from your account via an ATM. Debit cards are a big industry. Wells Fargo dominates the industry, with more than 50 other issuers competing in the market, according to the Nilson report.
A debit card may not have the protections of credit or charge cards, although some financial institutions place protections on their debit cards, and debit cards can have federal deposit insurance through the bank.
- Secured cards and other credit-builder cards
Best Alternative To A Prepaid Debit Card
The Chime Visa Debit Card is not a prepaid card, but it can save you more money than some of the other cards on this list. With Chime, there are no hidden fees, and that is also true of the debit card.
To get started, you will have to open a Chime Spending account. Then, you can manage your account with the banks mobile app. Theres no minimum balance you have to maintain and no monthly fees.
One of the advantages of using the Chime Visa Debit Card is that it can help you save money over the long run. This is because every time you swipe your card, Chime rounds up your transaction to the nearest dollar.
The bank will then transfer these savings into your savings account. Its an easy way to save money without even having to think about it.
Chime allows you to get paid up to two days early with direct deposit. Youll also get over fee-free ATM withdrawals at over 60,000 stores like Walgreens, CVS, and 7-Eleven.
Chime also just launched a brand new secured credit card that can help you build your credit.
You May Like: Google Svcapps
Blue Netspend Visa Prepaid Card
Best for fast approval
- This card is best for: Someone with a less-than-stellar credit score who wants less room for doubt when applying for a new tool to spend conveniently.
- This card is not a great choice for: A beginner cardholder who wants to learn the ropes and build credit with a traditional credit card. Being a prepaid option, this card doesnt feature some common components, such as APR or credit-building opportunities.
- What makes this card unique? Through Netspend Payback Rewards, you can earn cash back on select qualifying purchases, something rarely seen with easy-to-attain cards. The rewards program also gives cardholders personalized offers as an extra incentive.
- Is the Blue NetSpend Visa Prepaid Card worth it? Carrying the card comes with a monthly plan fee of up to $9.95, but the fast application and lack of a credit check make this an extremely accessible option. The cash back rewards are another reason the Blue Netspend Visa can be worthwhile, but many aspiring cardholders might benefit more from the ability to build their score with a card for bad credit.
Selecting A Rewards Credit Card
Generally speaking, cards that earn you points are usually best used for travel redemptions. These cards will likely give you other ways to cash out your points, but the majority of the time, you get the most value for your points when redeeming for travel. Similar to cash-back cards, you want to pick a card that gives you the most points on the categories you spend the most money. You also want to figure out what type of travel you prefer you could get an airline-branded credit card or a hotel-branded one. There are also credit cards that allow you to redeem for any type of travel. Regardless of what you go with, you need to know how the reward programs work so you can maximize your points.
Also Check: Sony Credit Card Pre Qualify
Are Prepaid Credit Cards Worth It
It depends on your needs. Prepaid credit cards have become incredibly handy in recent times. They have apps that track your spending and you can get benefits such as cash back and no foreign transaction fees. If youre worried about your spending, prepaid credit cards can be a good fit since you can only spend the funds that youve deposited.
Traditional credit cards give you more and better benefits, but prepaid credit cards still have a place in many wallets.
Hdfc Bank Forexplus Card
- The HDFC Bank ForexPlus card can availed as a Visa card or as a MasterCard variant and is best suited for international travellers.
- This card can be topped up while the card holder travels. Working as a credit card, the money is taken from the balance available in the HDFC Bank ForexPlus card and is accepted at all MasterCard and Visa merchant outlets.
- The HDFC Bank ForexPlus card can be loaded in various currencies namely Australian Dollar, Japanese Yen, AED , Canadian Dollar, Singapore Dollar, Swiss Franc, Euro, Sterling Pound, US Dollar and Swedish Krona.
- Customers can use the HDFC Bank ForexPlus card to withdraw cash, make PoS and online transactions on completely secure platforms.
- Card holders can reload this card at HDFC Bank branches, through NetBanking or Phone Banking, even when they are traveling.
- Card replacement will be done HDFC Bank in request by the customer.
- Card holders can also get insurance covers for death or Personal Accident, loss of checked-in baggage, Passport reconstruction and protection against fraudulent transactions done when the card is lost or stolen.
- NetBanking can be used by card holders to track card balance, spend and other details.
Read Also: Best Buy Citi Card
What Are Prepaid Debit Cards Used For
You can use a prepaid debit card online or at retail shops just as you would with a traditional credit card or debit card linked to a checking or savings account. Major brands like Visa or MasterCard issue prepaid cards so you can use the card anywhere credit cards are accepted.
This includes physical retailers as well as online stores. If you dont qualify for a bank account and have issues shopping online because you dont have a debit or credit card, then a prepaid debit card is a highly accessible option. Prepaid debit card issuers dont check your banking history when you apply.
What Is A Prepaid Card
Similar to a gift card, you add value to the prepaid card before you can use it, which is essentially like prepaying for future purchases. But prepaid cards come with a few more bells and whistles, like the ability to set up direct deposit and check your balance on a mobile app. They also require more attention since you can incur fees for simply having a card or reloading it with more cash.
Prepaid cards can be used to make purchases and pay bills, just like debit or credit cards. They are accepted nearly everywhere since they are often backed by a major card network, such as Visa, Mastercard or American Express.
Issuers won’t do a credit check when you open a prepaid card, but you also don’t build a credit history when you use one.
One disadvantage of using a prepaid card is that you can only complete transactions up to the amount you have loaded onto it. If you add $200 to your prepaid card, you can only spend up to $200. Any purchases you attempt to make exceeding $200 will be declined until you load more money onto your card.
Additionally, there’s often a cap on how much money you can have on your card. The cards on this list have limits ranging from $5,000 to $100,000. That said, the cap is generally pretty similar to a on a credit card.
Read Also: Account Online Best Buy Credit Card
The Difference Between Prepaid Cards And Debit Cards
Its important to note that prepaid cards are different from debit cards. Although both debit cards and prepaid cards allow you to make purchases, the major difference between the two is that a typical debit card is associated with a bank account. There is also a difference between prepaid cards and credit cards. When getting any type of card, its important to read the fine lines to make sure that you are not signing up for something you dont really need or want. Additionally, prepaid cards are different from gift cards, despite a few similarities. You can only use gift cards to make purchases at designated locations. With a prepaid card, you can buy anything that you want from any location. Although prepaid cards are not the same as gift cards, prepaid cards still make great giftsespecially if you want to give somebody the freedom to make purchases anywhere.
Who Should Skip A Prepaid Card
. Prepaid card usage is not reported to credit bureaus and will do nothing to boost your credit score.
Reward-chasers. While some prepaid cards do offer minimal rewards, those hoping to earn substantial rewards will find more value with a traditional rewards card.
Fee averse spenders. Prepaid cards often come with a variety of small fees that can add up quickly. In addition to transaction fees and monthly fees, you may be charged a fee for checking your card balance, for adding funds to the card, foreign transactions, and even a fee for inactivity.
You May Like: Southwest Referral Bonus
No Credit Check/ease Of Approval
The whole beauty of these prepaid cards is that its easy to get approved for. If a prepaid credit card gives you a hard time about approval or asks to do a credit pull, drop it fast. We only recommended cards that were a cinch to get approved for.
Of course, mobile access and extra perks also factored into our equation. For example, PayPals Bancorp 5% APY offer helped push this card to the top of the list.
How We Chose The Best Prepaid Debit Cards
We looked at over 40 of the most popular prepaid debit cards offered by banks, credit unions, and other financial institutions. Our list of the best prepaid debit cards is based on several factors such as fees, ease of use, ease of reloading, and features and benefits. The prepaid cards that made the list had the best mix of these factors.
Don’t Miss: Visa Gift Card Being Declined
Refresh Financial Secured Visa
A second secured credit card is the Refresh Financial Secured Visa. The benefit of this card is much like the Home Trust card, but the details are different: this costs an annual fee of $12.95 plus a maintenance fee of $3 each month, and the interest rate is 17.99%.
The credit limit on the Refresh Financial Secured Visa can be as low as $200, or as high as $10,000. Youre guaranteed approval if you can pay the deposit.¹
Cibc Smart Prepaid Travel Visa Card
The CIBC Smart Prepaid Travel Visa Card serves as a great payment method when youre moving around all you have to do is choose a currency and top up your card online through mobile banking or at any CIBC branch location. You will then benefit from a fixed exchange rate which will allow you to avoid unpleasant surprises related to exchange rates. The available currencies are US Dollars, Euros, Pounds Sterling and Mexican Pesos. Only these four currencies are available: Canadian dollars are not accepted by this card.
The minimum card amount and maximum balance vary from one currency to another. We invite you to visit the CIBC bank website to find out what these amounts are depending on your chosen currency. You will be able to access your account details online at any time and this prepaid credit card allows you to travel with peace of mind thanks to its chip card technology recognized around the world as a security standard. Active fraud monitoring is also available to detect any unauthorized activity.
Also Check: Should I Pay Off My Credit Card In Full
When Is A Prepaid Credit Card Necessary
Consumers who have good credit and a strong income will likely be able to get approved for a conventional credit card. But those who either have no credit built yet or have a bad credit history may find it difficult to get approved. Further, a strong income is also typically required for unsecured credit card approval, so anyone who does not meet these criteria may find themselves unable to get their hands on this type of financial tool.
In this case, a prepaid credit card may be a great option. While it cannot be used to build credit because your payments will not be reported to the credit bureaus, they can be used much like a credit card, such as using them to shop online.
So, if you dont have good credit and have had trouble trying to get approved for a regular credit card, then a prepaid card may be appropriate.
How Does A Prepaid Debit Card Work
A prepaid debit card is a card that already has funds on it, so the credit limit is the amount of money left on the card. You dont have to get approved for a certain limit like you would with a credit card. Instead, you load the amount that you want to be on the card, and that becomes your limit. You can use a prepaid debit card online and at most retailers that accept a regular debit card. However, you usually cant rent a car with a prepaid debit card. When you use the card to purchase something, the purchase is immediately deducted from the balance.
Read Also: First Premier Platinum Mastercard
Home Trust Secured Visa*
You might be new to Canada, have a problematic credit history, or are just starting out on your own financially. There are many reasons why you might need to build or rebuild your creditbut whatever the case, youll want to take steps towards achieving a healthy credit score. Thats where the no-fee Home Trust Secured Visa can come in. Unlike with conventional credit cards, its easy to be approved for a secured cardyou just need to be a resident of Canada and have a deposit. The Home Trust Secured Visa tops our list for its low minimum deposit and $0 annual fee. With this card, building your credit score is simple and affordable.
- Annual fee: $0
What Are Prepaid Credit Cards
A prepaid credit card or a prepaid virtual credit card is issued by a financial institution or bank to be used for transactions in a very similar way to a credit card. A prepaid card comes loaded with funds and works in a way that is very similar to a normal credit card. However, unlike a normal credit card that will function on credit that is borrowed from a bank, a prepaid card allows customers to make purchases using funds pre-loaded into the card.
Akin to a gift card, a prepaid cc can be used until it has funds. The greatest advantage offered by a prepaid card is that customers can make purchases without incurring any debts while also paying huge interest. Additionally, there is also a credit limit with such cards that have to be adhered to, and purchases have to be made only up until the amount that is available on the card. A nominal issuance fee may be applied by banks when a prepaid card is offered. The credit score of an individual is also not a key criterion once approvals are carried out. Along the same lines, using a prepaid card for ones purchases does not significantly impact the CIBIL score of an individual. So, if you dont have a Prepaid Card yet, then apply for a credit card today!
Also Check: Cabelasclubvisa
Best For Rewards: American Express Serve Cash Back
American Express Serve Cash Back
Offers unlimited 1% cash back on all purchases
Access to more than 30,000 fee-free ATMs
Free reload options include direct deposit, bank transfers, and mobile check deposit
Eligible purchases will receive purchase protection
Youll pay a $7.95 monthly fee
Cash reloads cost up to $3.95
Mobile check deposits take 10 days unless you want to pay a fee
Unlimited 1% cashback isnt too impressive among credit cards, but its the gold standard for prepaid debit cards. The American Express Serve Cash Back charges a $7.95 monthly fee, but you can make up for it if you spend at least $795 per month with the card.