Disposable Credit Cards
Disposable Credit Cards – A Smart Money Choice
Disposable credit cards are also known as pre-paid cards. Pre-paid cards do not require good credit to get. In fact, these credit cards are not even linked to your credit report. There are multiple cards to choose from; grocery stores, gas stations, pharmacies, Walmart, and Target all carry them. Pick which one suits your needs, load money and use it wherever they are accepted.
Disposable credit cards are handy when traveling. I’ve had my credit card number stolen before while traveling so I now go to great lengths to protect myself and my financial information.
These are great options for children or adults that are beginning their journey into learning money management. While they will not help you build credit, they will not hurt your credit.
If you are in the phase of rebuilding, working on paying your debts while not spending money you don’t have is a great idea. Because you can only use as much money as you have loaded on to your card, you will avoid overspending.
Each card will have different usage and fees. It is important to know these before buying the card. Disposable credit cards all have different fees for activation, monthly, ATM usage, checking how much money is on the account, and even needing to call the company for help. Minimize those fees where you can; log on to your account from the internet instead of calling customer service or use your card at stores versus the ATM. Load larger amounts of money in lump sums instead of frequent smaller amounts to avoid wasting money on loading fees.
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If you cannot access the answers you need online, you may have to call customer service. Some cards will handle certain calls free of charge. If you have questions about loading money onto your card, often there is a designated number you can call for free that will give you the answers you need.
It is always a good option to do some research on the card you want. Look at what other users are saying about their experience with disposable credit cards. This will help give you the knowledge you need to pick a card that is right for you.
It is important to know when your card expires. Sometimes card companies charge a fee to issue you a check for the remaining card balance.
Like with a standard credit card, make sure you report the loss of your disposable credit cards. If your card or number has been stolen, you need to report this as soon as you find out.