The Money Mentor: Young Money Prepaid Credit Card Preys on the Un-Banked!

18 Nov

by:  Lorillia Brown-Phillips, The Money Mentor, Your Black World

The Young Money Prepaid Discover® Credit Card, which launched in November 2011, is promoted as a card to serve the estimated 43 million Americans who are either unbanked or underbanked.  The prepaid credit card advertises on the website to include  features such as Billeo bill pay, direct deposit, spend analyzer, prescription discounts and shopping discounts in the form of cash back to the card to offset card fees.  It’s important that consumers don’t get fool by the promotion of a portion of card fees will use to support charitable causes such as Lil Wayne’s One Family Foundation.

Many unbanked and underbanked consumers who are considering the Young Money Prepaid Discover® Credit Card should be aware of the six hidden fees that this prepaid credit card contains.  Listed below are the six hidden fees consumer should recognize when considering the Young Money Prepaid Discover® Credit Card:

1.    One Time Purchase Fee $6.95 per card (deducted from your first load)
2.    Reload Fee $4.95 per load
3.    Monthly Maintenance Fee $3.95 per card per month
4.    ATM Withdrawal Fee $2.00 per transaction for domestic
ATM Withdrawal Fee $3.00 per transaction for international
5.    Monthly Statements $2.50 per statement if requested by mail
6.    Lost/Stolen Card Replacement -Active Cards Only $5.95 per replacement

Consumers who are underserved when it comes to their banking needs should understand that the Young Money Prepaid Discover® Credit Card is not their only alternative.  The “Bank On” initiative is a locally government led program that  provides low-income un- and underbanked people with free or low-cost starter or “second chance” bank accounts and access to financial education.  The program is a partnership between banks and credit unions in local communities to reduce barriers to banking, and increase access to the financial mainstream for un- or underbanked individuals.  To learn more about the BankOn program go to http://joinbankon.org.

About the Author:

Lorillia Brown-Phillips is a Financial Advisor and Author of “Jump Start Your Credit: How to Negotiate and Settled Your Debts in 10 Steps”, she can be reached at admin@brownassocllc.com or www.brownassocllc.com

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4 Responses to “The Money Mentor: Young Money Prepaid Credit Card Preys on the Un-Banked!”

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Trackbacks/Pingbacks

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