Prepaid credit card offers on the rise
An Internet search through available card offers found that while banks are reducing the overall number of credit offers, particularly to those with troubled credit histories, opportunities for prepaid credit cards are on the rise.
A prepaid credit card basically makes the borrower secure the line of credit with a cash deposit, not unlike traditional lending practices that required collateral for loans. Because banks are reeling from unsecured credit card debt ending up in default, the shift makes financial sense.
For borrowers, the advantage is a built-in control on spending, while having the opportunity to build a solid payment history and improve overall credit scores.
MetaBank is offering a Silver Prepaid MasterCard that offer free direct deposit, no credit check and unlimited purchase transactions. The card never charges for overdraft fees. Metabank offers several different prepaid options for consumers.
The Bancorp Bank offers a similar card, called the Vision Visa Card, which has no activation fee, free online bill pay and free direct deposit.
Discover’s Current Card is designed for teens, with many levels of parental controls on spending, complete with a fraud liability guarantee.
