An Introduction to Prepaid Debit Cards
Pre-paid debit cards can be the brand new thing in your wallet. They will treat your budget and finances better than regular credit cards will. Plus, they're just more hip to use.
You don't have to really apply for the cards like you do with a credit card. You actually purchase the cards online or at a retail location like a drug store or supermarket. Then, after you call an 800 number to activate your card, you can load it up with just about any amount of money you want and then spend it using the card. It's all pretty simple.
Notice that I didn't mention any sort of credit check. That's because you don't go through one with a prepaid debit card. You can have great credit, poor credit, or no credit at all and still get one of these cards. That makes reloadable debit cards very attractive to folks who've watched their credit take a tumble in recent years. It's also an attractive feature for youngsters just starting out in the credit world who haven't established any real credit history yet.
If you get tired of the card you can simply throw it away after you've spent off your money because there's no long-term committment on your part. Or you could reload the card with more money and keep going. The choice is yours because it's your card, not the bank's. You control when and how you use it. You'll pay a small monthly fee to keep your account open but it will be pretty nominal.
Reloadable prepaid cards work just like credit cards in every other way. You can use them at ATMs. You can use them to make purchases online or in stores. You can even use them to transfer money or pay bills.
What you can't do is use the cards to get yourself into debt. That's because you don't spend your "credit," which is money you actually haven't earned yet. You spend the money you do have so unless you have enough cash loaded onto your card for something, you can't buy it. Believe me, that's a great feature. Take it from someone who's made a few credit card mistakes in the past.
So let's sum it all up here. These cards are extremely easy to get. They work just like credt cards do - but without the risk. And they really help you control your spending. Sounds like a great deal to me.
You don't have to really apply for the cards like you do with a credit card. You actually purchase the cards online or at a retail location like a drug store or supermarket. Then, after you call an 800 number to activate your card, you can load it up with just about any amount of money you want and then spend it using the card. It's all pretty simple.
Notice that I didn't mention any sort of credit check. That's because you don't go through one with a prepaid debit card. You can have great credit, poor credit, or no credit at all and still get one of these cards. That makes reloadable debit cards very attractive to folks who've watched their credit take a tumble in recent years. It's also an attractive feature for youngsters just starting out in the credit world who haven't established any real credit history yet.
If you get tired of the card you can simply throw it away after you've spent off your money because there's no long-term committment on your part. Or you could reload the card with more money and keep going. The choice is yours because it's your card, not the bank's. You control when and how you use it. You'll pay a small monthly fee to keep your account open but it will be pretty nominal.
Reloadable prepaid cards work just like credit cards in every other way. You can use them at ATMs. You can use them to make purchases online or in stores. You can even use them to transfer money or pay bills.
What you can't do is use the cards to get yourself into debt. That's because you don't spend your "credit," which is money you actually haven't earned yet. You spend the money you do have so unless you have enough cash loaded onto your card for something, you can't buy it. Believe me, that's a great feature. Take it from someone who's made a few credit card mistakes in the past.
So let's sum it all up here. These cards are extremely easy to get. They work just like credt cards do - but without the risk. And they really help you control your spending. Sounds like a great deal to me.
Source...