No-Fee Pre-Paid Credit Cards

Video Transcript

"This is Patrick Munro financial adviser talking about what is a no fee prepaid credit card. Many times an individual who has challenges in credit, or has no credit at all wished to have a credit card. The bank is able to issue a credit card vehicle to the borrower if they put up a deposit of their own money. Because they have done so the bank is not entitled to a fee so this is an opportunity for the bank to extend this offer to an individual that has credit challenges. Normally a bank will only do this if you have another relationship with them that is to say a credit card, or checking account, savings account, things of that nature. And then of course what you are able to do is retire the balance on the credit card over time, be responsible in making your payments and it is a great way for someone with no credit, experience or credit history to get a credit card. This is Patrick Munro discussing no fee prepaid credit and debit cards."