First of all, let’s make sure you understand what Account Now is and is not. It is not a credit card or even a debit card for that matter. The best way I can think to explain it is by using an example. You know those phone cards that you can buy that have a certain amount of minutes on them? Well that in a nutshell is what an Account Now prepaid card is (except that you aren’t buying minutes you are buying money). Basically you send the company $100 and they put a $100 on your card.
The following is my personal review of the Account Now card. I try to be as unbiased as possible and I will list both the pros and cons of using this card. This card is definitely not for everyone, but for some people it could be a good fit.
The Benefits of an Account Now Prepaid Credit Card
To be honest not everyone should have an Account Now card. Some people like this card because it is safer than cash. Yes your card can be stolen and used, but according to Account Now Inc. your card is protected much like a credit-card or debit-card. Usually on credit cards you will only be liable for up to $50 of unauthorized expenses, but you will probably want to check with Account Now how much you would be liable for in the case of theft.
Advantage: Safer than cash
Another reason people want one of these prepaid cards is because it can help you build credit. If you use your Account Now card to pay your bills, then the company will send your bill payment information to some credit reporting agency. Little by little this should help improve your credit. Perhaps the best part of this card is that you can build your credit without having the risk of destroying your credit like most Americans do. With a credit-card you can hurt your credit by spending more than you have, but with an Account Now Prepaid card you can only spend the amount that you have put into the card. This can also save you in overdraft charges.
Advantage: Build credit safely
Disadvantages of an Account Now Card
You have to pay a monthly fee. Yes, they definitely don’t want you to see this when you are browsing their website, but after digging around for a while I found out that this service is not completely free. It always irks me when they want all of my information before telling me how much it is going to cost. From what I’ve found out you have to pay $9.95 a month for the service. That may not seem like a lot, but most credit cards are free if you are careful.
Disadvantage: Costs Money
I’m not entirely sold on the fact that the Account Now card is a real credit-builder. There may be some marginal benefit, but it doesn’t seem like this card would build credit as fast as a credit card.
When you visit their homepage notice how big the “Borrow Money” is and how small the iAdvance statement is.
In addition, Account Now Inc. advertises that you can borrow money with their card. It seems very difficult to borrow money from a prepaid card. After some investigation, I found out that you can borrow money, but you have to apply for a line of credit named (iAdvance) once you already have the Account Now prepaid card and are direct depositing your paychecks to the card. This aspect of the card does not seem in any way different than all of the other credit cards out there. I found this part of their advertising a little misleading.
Basically if you are someone who is not responsible with a credit card or you are unable to get a credit card because of bad credit, then the Account Now card may not be a bad choice for you. For people who are responsible with their credit cards, I personally would recommend not purchasing an Account Now card because of the monthly fees and questionable advertising
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