What's the big deal about prepaid cards?

[compassion101]

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@jsickz32 wrote:

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i kinda want it for this reason aswell. i recently turned 21 so im new to the whole bars, stripclubs and clubs. i want to get this card and put whatever limit i want to spend that night. ive spent way more than what i wanted sometimes just because i had my debit card with me.

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I don't think the girls at the stripclubs take AMEX

[navigatethis12]

Some prepaid cards have some very nice incentives. When I was looking for ways to meet bonus requirments I found one that gave a point for every dollar reloaded and when you got 4500 points you could get $50. You could also set it up for external transfer, so load, get $50, and take the money back out. It was a very lucrative card, even though I never swiped it.

I also have two now because they each have high yield savings accounts (5 and 6%). No bank has this and when I searched for high yield savings they came up. Other than that, I never understood why anyone would get them. Usually they have many fees and you're paying all that money and not gaining anything. I guess when you are desperate though, you will take anything.

[CreditScholar]

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@navigatethis12 wrote:

Some prepaid cards have some very nice incentives. When I was looking for ways to meet bonus requirments I found one that gave a point for every dollar reloaded and when you got 4500 points you could get $50. You could also set it up for external transfer, so load, get $50, and take the money back out. It was a very lucrative card, even though I never swiped it.

I also have two now because they each have high yield savings accounts (5 and 6%). No bank has this and when I searched for high yield savings they came up. Other than that, I never understood why anyone would get them. Usually they have many fees and you're paying all that money and not gaining anything. I guess when you are desperate though, you will take anything.

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+1. Prepaid anything (credit cards, cell phone plans, etc.) are typically much more expensive than their normal counterparts. In essence you're paying a premium for having lousy or no credit. For lenders it can be quite profitable with an extremely low level of risk.

It also opens another segment of the market to Amex, although it seems quite contrary to what they've traditionally stood for. For them, I'm fairly certain it's a money-grab to increase their bottom line. In many ways Zyncs with low hard limits act in a very similar manner.

[fuzzybean]

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@CreditScholar wrote:

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@navigatethis12 wrote:

Some prepaid cards have some very nice incentives. When I was looking for ways to meet bonus requirments I found one that gave a point for every dollar reloaded and when you got 4500 points you could get $50. You could also set it up for external transfer, so load, get $50, and take the money back out. It was a very lucrative card, even though I never swiped it.

I also have two now because they each have high yield savings accounts (5 and 6%). No bank has this and when I searched for high yield savings they came up. Other than that, I never understood why anyone would get them. Usually they have many fees and you're paying all that money and not gaining anything. I guess when you are desperate though, you will take anything.

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+1. Prepaid anything (credit cards, cell phone plans, etc.) are typically much more expensive than their normal counterparts. In essence you're paying a premium for having lousy or no credit. For lenders it can be quite profitable with an extremely low level of risk.

It also opens another segment of the market to Amex, although it seems quite contrary to what they've traditionally stood for. For them, I'm fairly certain it's a money-grab to increase their bottom line. In many ways Zyncs with low hard limits act in a very similar manner.

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Fortunately, if you're smart, you can get still have one without paying any fees at all.

[jsucool76]

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@jsickz32 wrote:
Thanks i just did it and it says 425 so i got the 25 . Does it really say prepaid on the card?

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It says prepaid on the back next to the amex network logo, as opposed to the amex prepaid which says "HAHAHA PREPAID" all of it lol