Prepaid Credit Cards
Prepaid credit cards, Prepaid credit card reviews
and credit card application details.Prepaid credit cards
are credit cards in name only as the issuer does not actually offer credit. The holder spends the money that he himself, a relative or employer deposited in advance into the account. Such credit cards do not require a PIN code. Popular brands include Visa Mastercard
, Discover, Amex
After buying the card, the holder puts an amount up to the set limit in it and then starts charging purchases. There is one key difference between prepaid and secured credit cards
– the former do not require a hefty sum just to open an account. Prepaid cards
can be issued to anyone over the age of 13. A large number of fees are applicable to prepaid cards to make up for the fact that no interest is charged. The Canadian Financial Consumer Agency, an independent government financial watchdog, famously described these products as an expensive way to spend your own money. These cards entail major risks, posed mainly by the companies marketing them. As an example, they are often pushed to teenagers for shopping online without requiring parental consent.
Prepaid MasterCard and Visa cards in Canada offer a high level of security, make for great gifts, and ensure the privacy of card holders. On the downside, they are frequently rejected by hotels and car rental establishments. It is often claimed that they do not affect your credit rating. Prepaid cards are a good alternative in case you do not have a credit card while traveling – they are a convenient way to carry funds. You are not held responsible for illicit use of your card, but on the other hand, many card brands do not require user identification – a bit of an inconsistency there. You can lose your balance if it is deemed “expired”, meaning that there is a deadline, by which the money must be spent. You would be wise to opt for a reloadable card, as these products always require identification and involve an application procedure. If your card is non-reloadable, you are allowed to buy things with the remaining balance and cover the rest via another credit card
, debit or cash at many retail stores.
According to a recent ranking, the best prepaid cards in Canada are the RBC Visa Gift Card, the Mosaik Prepaid Travel Mastercard, and the Vanilla Prepaid Mastercard.
The BMO Prepaid Travel MasterCard
can be reloaded free-of-charge online or via another BMO card. This prepaid credit card expires in three years. No extra fees are charged on individual purchases.
No form is required to sign up for the Royal Bank Visa. The catch is that you are penalized if you continue to carry a balance after six months. A fee of $15 is due for card replacement, but no usage fees apply when checking balances by phone and online and when making purchases at merchants. Upon the card’s expiry, a fee will be charged equal to the balance remaining on it. A sum equal to the total amount of the expiry fees will be donated to a charity supported by RBC.