Reloadable Credit Cards – Are They Worth The Cost?

Reloadable credit cards are offered by several companies to people having credit issues. For example, branded gift cards are reloaded credit cards offered by banks, and they function somewhat like the pre-paid cards except for the cost and some restrictions.

The cost in having reloadable credit cards can be compared to those applied to conventional plastic holders with a low credit standing. With such a card, you can have the same privileges worldwide as if you had conventional plastic.

Another popular offer is the debit card. Several banks issue these offers with the brand name of Visa or MasterCard. However, there is one drawback to these branded debit cards, they are not accepted everywhere. Gift cards issued by some banks that work like conventional plastic, is another example that is not widely accepted.

The main advantage of plastic that can be reloaded, is that it is widely accepted and you are not charged interest when you use it to make purchases. There is a drawback associated to this type which is the high fee associated to some transactions. Therefore, do your homework before settling for a particular offer. Beware of the different types of fees you might be charged such as a cancellation fee when you decide to close your account. Also, don’t forget the monthly service fee.

It is worth thinking twice before deciding on reloadable credit cards. The cost of carrying it can be high. The All Access Visa prepaid card is a good example. This card only asks for a minimum balance of $9.95 to open the account. The monthly maintenance fee is also $9.95. If you withdraw cash from an automatic teller machine it will cost you $2.00. It costs $5.95 to replace a lost or stolen card, and the same amount if your account is inactive.

Among the most popular reloadable credit cards, you also have the Western Union MasterCard. They ask for a minimum of $5.00 to open an account and it is free to apply. It costs $4.95 to withdraw from an automatic teller machine and $3.95 to transfer funds from your bank account to the card. Yet, it doesn’t cost anything if you direct deposit your pay check to the card. The fees don’t stop here, this is just an overview. Nevertheless, many still find it is worth having such a card.