Review of the BuyRight Prepaid Mastercard

The BuyRight Prepaid Mastercard was lasted reviewed on 25th September 2006

Summary - We recommend the BuyRIGHT Prepaid MasterCard® to those who are either looking to build or rebuild their credit. This is a unique hybrid prepaid debit card and a catalog card that combines the best features of both types of cards. As a prepaid mastercard, it gives cardholders the convenience being able to use it anywhere Mastercard is accepted. Cardholders also get free membership to an online catalog where they can buy products on credit. Payments to the online shop will be reported to 2 credit bureaus. Find out more.....

BuyRight as a prepaid debit card - The BuyRight Prepaid Mastercard is essentially a debit card whereby you can only spend what you load into the card. There is a one-time fee of $29.95 before you are issued the card (when you apply). This fee is much lower than most other prepaid credit cards or sub-prime cards.

Unique Fee Structure - Most prepaid debit cards charge a monthly maintainence fee. On top of that, you will incur fees for any transactions such as loading or using your card, using an atm, calling customer service. The BuyRight offers cardholders a choice of either just paying a monthly maintanence and not incur any transaction fees, or to incur any transaction fees and not having to pay a monthly fee.

The monthly maintainence fee is $7.95, which works out to $95.40. If you choose to pay this fee, then you will not have to incur any fees for using the ATM or any Point of Sale fee (which is $1.00 per transaction). If you choose not to pay the monthly maintanence fee, then you will incur these transaction fees.

Free membership to BuyRight Marketplace - Being a cardholder entitles you to a free membership in the BuyRight Marketplace. You can be a member without being a cardholder, but it will cost you a one-time fee of $149.95. Being a member allows you to use your BuyRight Prepaid Mastercard to shop at MyBuyRight.com. You will be extended a credit line up to $5,000. If you make a purchase at MyBuyRight.com and carry a balance, you will be charged a monthly fee of $1.25. For most purchases, you will have to make a downpayment of up to 25% of the purchase value. You will have to pay a minimum of either $10.00 or 5% of your monthly balance. Like a catalog credit card, there is no apr.

Credit Bureau Reporting - Best of all, any payments you make which are related to purchases at MyBuyRight.com are reported to two credit bureaus, TransUnion and Innovis.

Prepaid and Catalog Card - Best of both worlds? - The BuyRight is perhaps the only hybrid prepaid and catalog credit card in the credit card market today which combines the best features of both types of cards. As a prepaid mastercard, you enjoy the convenience of being able to use the card anywhere Mastercard is accepted, which is almost everywhere. Because you cannot spend more than you have loaded into the card, it instills financial discipline.

However, a traditional prepaid debit card does not extend cardholder any credit, and hence this does not help to build or rebuild one's credit. Some prepaid credit card get around this by offering a service called "credit builder". With this service, you pay a monthly fee (anywhere from $19.95 to $29.95), which is reported as an interest payment to the credit bureaus. This fee comes out of your pocket and does not go into any purchase you make. This is where the BuyRight Prepaid Mastercard differs from most prepaid credit card. You are given a membership to MyBuyRight.com, where any purchase you make can be paid partially (ie you are extended credit). Your payments for purchases at MyBuyRight.com are reported to 2 credit bureaus, which will help to build your credit. In this sense, it functions like a catalog credit card. However, unlike other catalog credit cards, you can use this card anywhere Mastercard is accepted and not just at MyBuyRight.com.

Verdict - We recommend the BuyRIGHT Prepaid MasterCard® to those who are looking to build or rebuild their credit as it combines the best features of a prepaid and catalog credit card. Furthermore, it is the only card that gives you the option of choosing either to pay a monthly fee or pay any transaction fees that you incur. This is perhaps the most cost effective prepaid debit card for building or rebuilding you credit.

Positives