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March 30, 2007, Newsletter Issue #58: No interest charges or late fees with a prepaid credit card
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Tip of the Week
Stop worrying about late fees and interest payments when you get a pay as you go credit card. Because these prepaid credit cards are preloaded with money, your purchase amounts are deducted from the balance, meaning you aren't borrowing money and aren't required to pay interest.
That doesn't mean that prepaid credit cards are free though. You may have to pay other fees to maintain the card such as application fees and opening balance fees. Check with the individual prepaid credit card companies to find out what their policies are.
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