Thread: pre-paid credit cards?

My friend's employer gave him the option of getting his paycheck pre-loaded on a pre-paid credit/debit card instead of direct deposit. Why would anyone do this? Don't employers know enough about their employees already - why do they want to know spending habits as well?!?!?!?

Wow, I never heard of this!

Pretty crazy, if you ask me.

I tcould be a way for the employer to help build their employees credit. Usually you have to start out with secured deposit credit cards or pre-paid credit cards when stariting to build your credit! Just a thought. Or it could be a conspiracy, the employers are tracking your spending habits and selling the information to other CO and the government... Ha ha!

I know about these cards. An investor introduced me to them. The reason he did is because they kick him money to get people signed up. Then, there was an ongoing residual for each person who continued using the card.

My theory: It is a way for the card provider to build up capital to invest for a return. It also provides shelter as the card is not governed like a bank. So I think none of them are FDIC insured. It provides shelter from garnishment. It also may provide the employer shelter from the IRS.

Overall, I would ask your employer why they feel it is a benefit. Let use know on that question.

I am pretty sure there are fees to be paid when you use a card like this. Better check. As to using it to build credit it won't work because prepaid cards do not report to the credit bureaus. A secured credit card will help rebuild credit because it is a credit card and thus is part of the ones that have to abide to the "rules". My advice is just watch out, there is a hook somewhere, someone is making money off this and it won't be you
Dewey