Cash Advance Deposited to Visa Prepaid Cards

Engineering a cash advance deposited to Visa prepaid cards may be setting yourself up for at least twice the fees of either the stored value card or the cash advance on their own. Combining the two entails a balance transfer from one card to another, and the fees charged for doing so would occur on both accounts, plus possible additional charges for the balance transfer.

Why Get a Cash Advance Deposited to Visa Prepaid Cards

If your goal is cutting costs, you probably won't achieve it by transferring a cash advance onto a prepaid card. However, if your priority is managing or controlling the spending of a cash advance, then you might accomplish that by depositing a cash advance onto a prepaid card. Some people find that they are less tempted to spend when their wallets only contain plastic, but spend money faster when it's in cash format. A cash advance deposited onto a prepaid card may also fulfill the objectives of:

  • Giving a spending allowance to a teenager or college student
  • Distributing gifts when funds are tight
  • Obtaining an advance on a paycheck
  • Setting aside spending money for use on a vacation or business trip
Cash advance deposited to Visa prepaid cards

Know the Costs

  • Cash advances tend to have high fees, and add to a credit cardholder's indebtedness. Cash advances usually have additional fees. The interest rate for a cash advance can be higher than the interest rate your receive for regular purchases. If you already have a lot of outstanding debt, or are trying to repair bad credit or other borrowing-related problems, taking a cash advance may make matters worse.
  • Stored value cards typically have a one-time fee for opening the account, and might also have additional fees levied on each transaction..
  • Balance transfers often have fees when certain minimum balance thresholds aren't met. The fees may vary depending on whether the balance transfer occurs over the phone, at an automated teller machine, online or at a bank branch. The interest rate on the credit card may also influence the fee to the extent that the interest rate reflects cardholder's creditworthiness, spending and repayment habits.

Manage Expenses

Before you contemplate any cash advance, assess whether and when you'd be able to pay it back. Make a budget before initiating the balance transfer onto the prepaid card, and include all fees and expenditures along with relevant income. You'll want to read all of the documentation on fees for the cash advance, balance transfer and prepaid cards. Set a goal for repaying the cash advance so that your indebtedness and interest rates don't snowball. Keep records of how much money you load onto the card, and check the balances before and after you finish shopping.

Learn More

To learn more about a cash advance deposited to Visa prepaid cards, and find out how and where to apply for them, visit the Visa's website, which includes links to different issuers and applications for accounts.

After doing your research, you may find that other types of borrowing might suit your needs better than putting a cash advance on a prepaid card. Or at the very least, you'll be well informed about the risks before proceeding.