Where can I purchase a prepaid credit card?

Prepaid credit cards are a great alternative for those who have had credit problems in the past. One of the great advantages to them is that they can help in controlling your spending habits, by placing an absolute limit on what you can purchase. That’s the basic idea, anyway, but they have become a little complex, or at least as complex as anything related to credit. There are a couple of different kinds of prepaid credit cards, and they’re both up for purchase in different places and in different ways.

The most elemental kind of prepaid credit card is just that. You can purchase these at kiosks in shopping malls as well as at gas stations and convenience stores. Simply ask at the counter, and the sales clerks should be able to direct you. There are even vending machines that dispense these in various locations. The good part about these is that they are exactly what they say they are. If you put 20 dollars on the card, then that’s what you have. However, there has to be a drawback to everything, and on these, for many of the cards there are fees related to the money placed on the card, and sometimes the transfers can get quite expensive. There are also cards available for set denominations that don’t have a fee connected, but they have very limited uses. They are also not particularly useful for anyone looking to establish a clean, new credit history, because they don’t even show up on a credit check.

The other kind of prepaid credit card is one that’s available from the credit card company directly. A simple search from VISA will reveal at least a dozen choices for prepaid cards. All of these require an application, which itself isn’t a very lengthy procedure. Again, these are not very useful for establishing a credit history, but they are a beginning. They could be considered a kind of a training card for those purposes then. However, for those with bad credit, these can be as difficult to get as a regular card, and sometimes seem as though they have none of the advantages, but all of the hassle of a regular card.

They are an option, then, as an alternative to a credit card, and can be useful. Their best uses, however, are for helping consumers to discipline themselves for a future where credit cards might be something that can be integrated into their financial lifestyle.

What is a credit card?

Credit cards are everywhere these days. If anyone has an email account from any of the free email servers, chances are good that the majority of spam messages have something to do with credit and credit cards. This might bring to mind a number of complex questions about credit cards and how they work, and some of these can be answered by addressing the most simple question of what, exactly, is a credit card?

The idea of the credit card has its origins in the beginnings of commerce. The idea of purchasing something on credit might seem like a new innovation, and thanks to the advancements of technology in online banking, there are many innovations, but credit itself is very old. Getting merchandise, land, or even a drink at a pub, for no money upfront and a promise to repay is as old as civilization.

The way we think of it today, however, has more to do with the banking system than it does with a deal between two individuals. It began in the 19th century, as the modern idea of banks were just beginning to take root. The first examples of what we think of as credit cards started in the next century, in the 40s and 50s, with the Charge-It card and the Diner’s Club card. These were for purchases made at very specific locations, where the restaurant and shop owners had special arrangements with the banks to be reimbursed for customer purchases.

In this sense, then, they were very limiting, but it was also a much more secure way of thinking about purchasing, both on the part of the retailer and the consumer, because one could not purchase more than what the bank balance showed. Today, however, it’s a very different story.

Now credit cards are issues based upon the individual’s projected ability to repay. This means that one’s earnings and purchasing histories are taken into account to come up with a credit limit. It sounds simple enough, but now it’s based on money that does not yet exist, and this is where consumers can potentially get into trouble. If the bank says that there is a likelihood of money in the future, then there’s also a greater likelihood for purchasing now. It’s simple enough to see where this could lead. The banks also issue service charges, based on interest, for any debt left unpaid, and over the months, it can mean a fairly hefty price to be paid, and oftentimes one purchase can easily end up costing twice as much as the ticket price.

How do credit cards work?

In this day and age, where there are so many concerns about debt in general, on a national as well as a global scale, more people are starting to find themselves at crossroads about their own personal finances. Credit card debt is a very large part of the everyday life in this culture, something that lives in the background until there are crises, minor or major. Times like this, people often start to ask the basic questions about economic structure, and one immediate question is: how do credit cards work?

The first credit card was offered by West coast banks in the 1920s. The idea here was that some people were considered good credit risks, and could apply for loans at banks. As a courtesy, this extended into offering a card where they could use that for very small amounts, with the promise of reimbursing the bank later. There was a small interest charge applied, and that’s the origin of the credit card system today. By the 1950s, there were more credit cards being offered, notably by the Diner’s Club and American Express. Visa and Master Charge, later to become Master Card, followed suit, and eventually the Discover card.

The reason that credit cards work so well for the banks, is that they can offer people the chance to buy things they wouldn’t normally be able to afford, with the legal obligation to repay with interest. Usually the interest is quite high, and this it the APR to which customers need to pay attention. A low APR can be a good thing, but they usually only last for a year, before it goes up, and often to 19-23% interest. As long as there is a balance on the card, the customer is paying interest on that amount.

The culture has become accustomed to carrying large amounts on their credit cards, so much so that it’s become an everyday occurrence. It doesn’t seem out of the ordinary at all to have thousands of dollars owed to several different credit card companies at once. People are paying interest on money already spent, and often this can take years to pay off completely, at which point there will often be more credit cards in their possession, starting the cycle all over again. They can be very convenient for people who use them in emergencies, but they are also a great generator of income for the banks lending the money.

How to Pay Off Credit Cards

There are a number of simple steps that will allow you to take on the issue of how to pay-off your credit cards and get back in the black so you can once again become financially stable.

First, you must pay more than the minimum required payment every month. By only paying the minimum, you are doing exactly what your credit card company is hoping you’d do, because this is the only way they make money. The longer you take to repay off the credit card, the more interest they make. You need to pay as much as possible every month. If it takes skipping a lunch out or not buying that mocha latte, then do so. Making a few temporary sacrifices will dramatically save you hundreds.

If you have one credit card with a lower interest rate and you haven’t maxed it out yet, transfer all your other credit card debt to that card. If it is maxed out, make the higher payment on that card and once you have reduce the maximum limit, then transfer as much as you can from the higher interest credit cards; keep doing this until all your credit cards with a higher interest rate have a zero balance, then either negotiate for a lower interest rate on those cards, or cancel them. Also, take advantage of promotional lower interest rate credit card offers and transfers, if the maximum limit allows all the debt you have, then transfer them over to the new lower interest rate. Keep in mind that the new lower credit card rate is only a promotional rate, usually they are good for one year, then the rate will raise to possibly a higher rate than what you have now. So, you must pay off the promotional credit card within the year. But, if that’s not possible, keep an eye out for more promotional lower interest rate credit cards and transfer the funds to that card.

It’s wise to cash out any investments, stocks, or savings to pay-off your credit card, the interest you are paying on your credit cards is higher than the interest you’re earning in your stocks, investments or savings account. Basically, paying off your credit card debt is tantamount to getting an 18% return. You can also borrow against your life insurance; borrowing against your life insurance the interest rate is usually below commercial rates and below your credit card interest rate and you can take your time in repaying the this loan, but do repay it. 401(k)s are another source for you to borrow from, you usually can borrow up to 50% of the accounts value and the interest rate is usually one to two points above prime, which is still cheaper than the interest found on your credit cards.

If you can’t pay more than the minimum, you don’t get promotional lower interest rate credit cards in the mail, you don’t have investments, stocks, savings, life insurance policy or a 401(k) plan to cash in or borrow from, then it’s time to hit up your family members. You can work out a payment plan and they most likely won’t charge you an interest rate. If family won’t come through for you, you might just consider bankruptcy, which really is a last resort, because a bankruptcy on your credit report does not fare well, and any future credit you might qualify for will be double or even triple the interest rates you have today.

can a credit card company sue you

A credit card company will sue you if their in-house collections department has not been successful in getting you to pay your outstanding credit card balance. The in-house collections group are a part of the credit cards company who are responsible for working with you to get the overdue credit card balance paid. They will usually try several actions against you in hopes to get you to pay off you balance as quickly as possible, such as freeze your available credit line, increase your APR to the default interest rate, which can be as high as 30 percent, or even higher. They will persistently contact you via phone to get you to pay off your debt, and sometimes they will work with you to set-up an automatic bill pay option from your checking account.

If the in-house collections department fails at collecting, then the credit card company does have the option to take you to court, because by you signing the application, you signed a contract in which you agreed to pay back any money borrowed by using the credit card and well as any interest charges and fees. By not making your minimum monthly payment on your credit card, you have basically broken the contract with the card issuer.

Most credit card issuers prefer not going to court, because it is costly and time consuming, rather they will allow an arbitrator to resolve any disputes. An arbitrator is an individual who is trained to review information from both the cardholder and the credit card issuer. If the cardholder insists that they are not liable for the money, the card issuer will initiate a court action that will make the courts assign an arbitrator to make the decision about how much money is owed to the card issuer. This decision is binding on both parties.

How to Get Out of Debt

Debt is a big problem in America today. Individuals have come to accept owning several credit cards and taking out several loans as the norm. However this very quickly leads to living beyond your income, unrealistically high bills and a mountain of stress, especially in the current economy. If debt has you firmly in its grip and you want out, there are several things that you can do.
The first thing to do is not take on any more debt until you have the old debt paid off. Don’t use the credit card, take out any loans, or borrow any money until you have the current debt paid off. Everything should be paid for with cash, check, or debit. If you continue to add to what you owe, you will only increase what you have to pay in the long run because of the interest rates as well as increase the amount of time it will take you to get out of debt.
The next thing that you need to do is set up a realistic budget. Calculate your living expenses, gas, groceries, cell phones, and any other bills including creditors and then break that down based on your income. If you need to work overtime or earn extra hours, put that towards paying off your debt as well. When it comes to credit card bills and even loans, always pay more than the minimum. You can pay the debt off much faster and save yourself a lot of money in interest. Also, it is important that you pay more to the creditors that have higher interest rates because you will be paying more to them in the long run. As you get each bill paid off, you can then transfer the amount that you were paying to the remaining bills as you work one by one to get them all paid off.
Debt is painful and stressful experience that many people have been through; however, it is not impossible. By getting yourself out of debt now you will not only save yourself a lot of headaches, but you will also learn the skills to avoid debt in the future.

How to Make a Payment on a GE Credit Card

Well if you are Internet savoy you may find that applying for and paying for your GE Credit Card is very easy. There is always the old snail mail method of making payments but with new technology and easy to use system one will find that getting and making payments on the GE Credit Card is user friendly. If you go to their website you will find tips on ways to pay for your purchases in their card. If you want to go old school than you can mail the payments into GE Money, PO Box 960061, Orlando Florida 32896 and they ask that you send it early so they have time to receive it and process it by your due date. This would avoid any confusion as to whether your payment was late or not. Then there is the phone. Your first statement will have the phone number for your area to call. This may add on a few fees for the fact that they have to hire people to be there to receive your call.

Then there are the newer ways to pay bills these days. Automatic withdrawal and Online. You can go on line and set up a schedule for when you want them to automatically take the money out of your bank account. You would just have to make sure you get enough money into your account before that date each month. Some people have a hard time with that. Then there is just paying online. With GE, you can make one time payments at your convenience and you can also set up future payments to be made on certain days for certain amounts for up to six future payments. If you go with the online option it is the cheapest and most convenient way to make your payments on time.

Can Credit Companies Garnish Your Wages?

If you’ve been letting your credit card debt rise beyond your means in which to pay, you might ask whether or not credit card companies may garnish your wages? They can, but their ability to do so is limited. First, the company would need to sue you. They would then need to win. Even then, the company may not garnish wages unless a judge decides that’s an appropriate method of payment.

In the event that you’re served with legal payments, then find an attorney immediately. You should never ignore a lawsuit. If you fail to show in court, the plaintiff (such as a credit card company) may then receive in his or her favor a default judgment. A default judgment would mean you now owe the amount for which the creditor sued. The courts then decide how to best to retrieve this money, and that may well mean garnishing your wages. In such an instance, the court would contact your employers and order them to withhold a portion of your pay. Since July 24, 2009, that amount would be twenty-five percent of your disposable income if it happens to be greater than two hundred and ninety dollars, or any amount that’s thirty times the federal minimum wage, whichever amount is lower.

In the event that you receive notices from your employer that a credit card company, or anyone, is garnishing your wages, and you haven’t received papers, then also immediately see a lawyer. In this case, the creditor has not followed the correct procedures and it’s possible to have the judgment overturned. The best way, of course, to avoid a lawsuit and going through the burden of having your wages garnished, is to pay off debts before they’re extremely delinquent. In any case, you want to try and avoid a lawsuit, because once a judgment is entered onto your credit report, it remains from the date of filing for seven years.

Can You Be Sued for Credit Card Debts

With all of the current economic issues that are affecting people across the country one of the ongoing problems that many people face, often regardless of outside economic factors is high credit card balances. However, the compounded interests rates that are so common with today’s cards has more people over their limit and seeking alternatives to their outrageously high bills. And once you get behind on your payments it can be extremely difficult to crawl back out of the debt hole that has been created. In addition, simply paying the minimum monthly balance will never get you out of debt, and greater numbers of people are failing to make their payments.

This has a lot of people wondering what the consequences for their debts are going to be. From bad credit reports to concerns of being sued by large banks, the paranoia creeps in easily when a person is suffering from major financial debts that they have little chance of paying off. So how many of these fears are founded and what is simply paranoia? Well, damaging your credit rating is certainly a possibility and is also a guarantee if you don’t pay your bills. However, the idea of a being suied over them is a different question.

The answer is that you can be sued for non payment of debts, though it is extremely unlikely that you will be. Creditors want to be paid, not incur additional court costs and endure all of the hassle that is part of lawsuits. If you attempt to make payments and demonstrate some kind of effort in that regard most companies will work with you on a payment plan. The main thing is try and not let your balances get unmanageable in the first place and while many people are suffering economic setbacks even paying the minimum payment every month will at least keep you in good standing and won’t ruin your credit.

what stores sell prepaid credit cards

You can buy prepaid credit cards from most drug stores, grocery stores and even at gas stations or convenient stores; virtually almost any retail store. But, be sure to see that the prepaid credit card is the one that will suit your needs, not all prepaid credit cards are re-loadable; the back of the card will say if it is re-loadable.

Prepaid credit cards are becoming a new option for people that find it difficult or impossible to obtain a traditional credit card. They do however work a bit differently than a traditional credit of debit card works, because you have to load money onto the card before using it, and you can only spend up to the amount that has been loaded. But, they do have the convenience of having a traditional credit card as they can be used anywhere in the world where Mastercard and Visa credit cards are accepted; they may also be used online, which has given a new found purchasing freedom for people that do not have credit cards. For example, with a prepaid credit card, you can purchase an airline ticket online, or reserve a rental car.

Prepaid credit cards can also be purchased as a gift for a third party, because people don’t need to have a bank account, only an address and proof of ID. There are no credit checks done, so even someone with bad credit can purchase a prepaid credit card. Parents have found that purchasing a re-loadable prepaid credit card for their children to be a great financial teaching tool. Teens can load their allowance or after-school wage earnings onto the prepaid credit card and be able to purchase items online without having to use their parents credit cards.

The convenience of a prepaid credit card has made life easier for those without a bank account, with bad credit, or are too young to have a credit card.