After being slammed by critics for its high fees, the Kardashian Kard Prepaid MasterCard has been pulled from the market.
Those fees included a $1.50 fee for ATM withdrawals, a dollar fee if the ATM withdrawal or point-of-sale transaction was declined, and a $9.95 fee to replace a lost or stolen card. And canceling the card would have cost you $6.
With the Kardashian Kard, which was actually a very pricey prepaid debit card rather than a credit card, consumers had the choice of either a six-month plan that would have cost $59.95 or a 12-month plan the would have cost $99.95. The cost of each plan included a purchase fee, minimum deposit and monthly fee for the plan period.
A prepaid debit card can be used to make purchases and payments and its spending is limited to the balance of the card. Consumers may qualify for prepaid debit cards even if they have bad credit, though most prepaid cards don't help to build credit history at the three major credit-reporting agencies.
A prepaid debit card may be a convenient if costly payment vehicle for folks living without traditional banking accounts, for travelers and for parents shelling out allowances for teens.
But as the debunked Kardashian Kard proves, it's important to watch out for fees.
Fees on prepaid debit cards vary widely. And you'll need to shop carefully when considering a prepaid debit card.
Typical fees on prepaid debit cards include fees for activating the card and reloading value on the card. But you'll also want to watch out for fees for checking your balance, calling customer service and using the card to withdraw cash at an ATM.
What kind of monthly fee does a prepaid debit card charge and will that fee be waived if you sign up for direct deposit?
Be sure to read all the fine print detailing a prepaid debit card's various fees before signing up for a card.
If you're interested in establishing or re-establishing your credit, a secured card may be a good choice for you.
If you handle the account well and the issuer reports to the three main consumer reporting agencies, you'll build credit. And you may be able to upgrade to an unsecured credit card from the card issuer within 18 months.