We’ve heard of celebrities endorsing perfume, championing charitable causes, and even testifying to the success of weight-loss programs, but endorsing a credit card marketed to teenagers—as Kim Kardashian is doing—is news to us. Granted, we spend a lot more time checking our credit score and planning out our budget than keeping up with the Kardashians, but we have conflicting feelings about carrying their family portrait in our wallet.
Don’t Buy Drugs With Your Kardashians
The card is a prepaid MasterCard meant to appeal to teenagers and to allow parents to have more influence over their children’s spending. To strengthen a parent’s resolve and perhaps inspire a bit of paranoia, the company cites illegal drugs (just say no!) as a purchase that will be made more difficult by a card—that is, making the fair assumption that your local drug dealer doesn't take credit. Rather perversely, we can’t help but wonder: If your teenager is distinguishing herself by buying drugs, what on earth makes you think she won’t pull a similarly intelligent move (read the sarcasm here—nothing to do with drugs is intelligent) by taking a cash advance from her card, fees be damned?
Prepaid Isn’t Just for Teenagers
Generally, we like the prepaid credit card. We like the enforced limit, and that a pre-loaded amount can steer us away from the murky swamp of credit card debt. Used along with a budget, a prepaid credit card can keep us from shelling out any extra cash. But there are down sides, too: This is a credit card, after all, and there will be fees. Patrice Peyret of banking company Plastyc reminds us of a few of the most likely suspects:
- Activation fee: This is the fee that some cards charge you just to begin using the card.
- Monthly fee: This is automatically charged each month to keep the account open. Some cards waive or reduce this fee with a minimum balance.
- ATM withdrawal fee: This is on top of any fee charged by the ATM network.
- Transaction or purchase fee: This is a fee that some cards charge each time you use the card, regardless of the amount of the purchase.
- Fees for loading money in the card from a bank account or another card of from a parent account.
For a full rundown of our thoughts on prepaid credit cards (and our words of caution), see our post on the risks and rewards of prepaid cards. CLICK HERE.
Tell us in the comments: Have you ever used a prepaid credit card? Does one showcasing the Kardashian sisters appeal to you?
Image Credit: Beauty And The Street