Pre-paid Visa card

[Lachesis00]

has anyone ever used one of these? What can you tell me about them. I am thinking of getting one in hopes to raise our credit but also to have a visa. We have a 28 day road trip in August.

Any suggestions on who to go to?

 

[tinkie]

Hi! I just bought one - I believe it is called a Gift Card - I bought mine at AAA - you can put any amount on it and it works just like a credit card (although it is essentially a debit card0 any place that accepts Visa takes it....the best part is that it is protected from loss or theft....I have no idea if it can help a credit rating - I would doubt it....but call AAA or VISA for that info! It seems a great tool for controlling your spending on a trip! Let's hope so!

 

[westjones]

What happens if you give someone a $50 gift card VISA and they buy something for $60? Does the card tell the merchant how much is on the card and then the person pays the difference (the way other gift cards work)?

Thanks,
DJ

 

[kris24]

If a person has a $50 gift card and their purchase was $60 they would have to pay the $10 first and then use the prepaid visa or if the merchant can manually enter that the customer is only using the card for $50. If the merchant just scans the card for the whole $60 the card will be declined. Another important thing is the person with the card needs to keep up with their balance because a merchant will not be able to tell them. Also you want to see if your card loses value if you dont use it within a certain amount of time. They will also not do anything for your credit because there is no personal information to go along with the card. I work for a company that sells prepaid visas so if you have any other questions I will try to answer them.

Kristan

 

[jlw29]

I think I know what you are talking about. I've gotten offers for these (along with every other credit card known to man!). It's not a "gift card", but a regular credit card that you pay them a deposit in exchange for them taking a risk on you. For example, you deposit $200 and the credit card company gives you a credit limit of (for example) $400 or some multiple of your deposit. The money you send in is like a security deposit, not a pre-payment. You still have to make a payment every month, and the interest rate is usually very high, so only use what you can pay off! It's a good way to build back up credit -- if you use it properly.

edit
OOPS, just realized I didn't answer your question -- I would go to a reputable credit card company that offers both type of credit card. For example Capital One or whoever does the Disney visa (Bank One?). If you show a good history with these companies, you may be able to switch over to a non-deposit credit card with them. Also, they are more likely to have better rates and customer service

 

[tinkie]

My AAA agent told me that you can check your balances online and that the card expires after 1 year I believe it was....meaning you have to spend all of it by then.

 

[DebbieB]

I bought my nieces the Visa Gift Cards for Christmas. My sister-in- law told me never to buy them again. The merchants had to know the exact balance on the card in order for them to use them. They had a hard time keeping up with it because they were spending a little here and there.

 

[keith-atl]

Not sure if you are aware, but if you are disney property you can give them cash and use your room key as a CC at all disney shops, and restaraunts as well as some partnered stuff. Thats if you dont want use a CC to charge with, just a thought.

 

[CajunDixie]

The OP is not talking about a gift card. As jlw29 stated it is for a pre-paid credit card. You deposit money into a type of savings account and that is your credit limit. Beware of high annual fees with these accounts. If your credit it bad it may be worth it to use one of these cards for 2 years then apply for a regular credit card.

 

[sdamico71]

The OP is talking about a "secured" credit card.
Typically you put up an amount of money into an interest bearing savings account. Then the credit card company gives you a credit limit equal to the amount of your deposit (some give 150 or 200% of your deposit amount).
Most companies charge an initial fee for this type of card. In addition, they may charge you a monthly fee.
The companies that carry this type of card that are reputable are: Providian, Bank One, and Capital One.
I know several people who prefer the secured cards over unsecured cards. For the "overspenders" of the world, this is great because you dictate your credit limit. It is also a great starter card for a college freshman.
Yes, the interest rates are much higher on these cards, but remember to subtract the amount of interest you are receiving on the savings account to get the true APR. These types of savings accounts typically pay a higher interest rate than a typical savings account.
Lastly, these secured cards do help your credit rating. And with good payment history, the credit card companies may give you a higher credit limit (that is unsecured). Additionally, some send you back your security deposit after a specified time of good payment history.
HTH.