Pros And Cons Of The Prepaid Rush Card

Posted on July 21, 2010
Filed Under Credit Score | Leave a Comment

One of the many pre-paid credit card option in the United States is the Rush Card. Like many prepaid cards, Rush Card can be useful for anyone who needs a card but cannot or does not want to get a card. However, before you make a decision about getting a Rush Card, it is important to understand both the benefits and high costs of the system.

Rush Card – how it works

While Rush card markets itself as a “pre-paid credit card,” it works more like any other debit card. A customer can load the card with money, and then use it anywhere a Visa card is accepted. After the balance on the Rush Card account hits zero, transactions are denied. Checks can also be written against some types of Rush card accounts. Rush Card charges fees for the use of the Rush card. Russell Simmons, a business consultant and author, started UniRush and Rush Card in 2003.

Benefits of Rush Card

Having a Rush Card can provide some benefits for cardholders. Credit cards can be really tough to get for any person that has bad credit. Because Rush Card works on the Visa system and has a full credit card number, it can be used to make online purchases and where a credit card would normally be used. Because you cannot overdraw a Rush Card account, you won’t have to pay overdraft fees or high interest rates.

Very high costs of the Rush Card

Rush Cards are not the exact same as checking or debit accounts, though. Rush Card fees are very high, compared to other types of accounts. You can be charged $ 19.95 a month for activation or usage fees. There are also fees for using the Rush Card in an ATM. There are statement and “maintenance fees”. Paying bills with the Rush Card also leads to fees being charged. The highest cost is also very possibly the convenience fee. Every time you swipe or use the Rush Card, you will be charged a $ .50 or $ 1 fee. To access your own money, the Rush Card could charge you $ 100 or more a month.

Alternative options to the Rush Card

The Rush Card does offer some convenience in accessing and using money. Standard transaction fees can be incredibly expensive. If you have damaged credit, a checking account is going to probably be a better solution than the Rush Card. Some credit unions offer accounts designed especially for those with bad credit. The Rush Card has very high fees compared to debit accounts and cards. Even if you have had financial problems in the past, check with multiple banks or credit unions to see if they can offer help – before you sign up for the high fees of the Rush Card.

Resources for the article

Rush Card schedule of fees

ConsumerAffairs.com

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