Prepaid Debit Cards Exposed: Should You Apply For One?

In the past, people paid for their purchases with cash, credit card, or check. Then they realized how inconvenient it was to carry around cash, and how time-consuming it was to write a check, and how difficult it was to maintain discipline when managing credit cards, so this brought about the birth of prepaid debit cards.When you do apply, take some time to review the many prepaid debit card offers out there. PrepaidDebitCards.net, An excellent site which lists over 12 prepaid debit cards to apply for securely online directly at issuers website.

What are prepaid debit cards?
Debit cards are also called bankcards, or check cards. Today, they are the most popular mode of payment in the US. They can be used for any purchase that allows card payments.
Prepaid debit cards are convenient, because as the name suggests, a consumer seems as if they are paying by cash, in the form of a card.  They are used to pay for a purchase with the money that is in the cardholder’s account.

How do prepaid debit cards differ from credit cards?
Prepaid debit cards simply take money from the account of a cardholder, and still offer the convenience of paying with a credit card. The money, which is essentially the cardholder’s, is not a debt. Therefore, if the account no longer has funds, a transaction may not be completed unless more money is loaded into it. A holder of a debit card spends only what his account has.
Credit cards holders “borrow” money from the credit card company, or issuer, every time they have to pay for something. Therefore, they spend first, and pay later.  If they are unable to pay their debts, the company imposes a “penalty”, through interest proportional to the amount loaned.

What is the good side of prepaid credit cards?
The good side of prepaid credit cards is that you won’t spend more than what you can afford because your spending power is just limited to the amount you have deposited into your prepaid card. this card could also be a good expense tracker because you can load your card with the amount you allot for you to spend. Another benefit of a prepaid card is that you don’t have to pay for late charges and interests unlike in a normal credit card.

What are some cons of prepaid credit cards?
A disadvantage of using prepaid debit cards compared to a normal credit card is that they are not widely accepted in some establishments.
Another disadvantage is that due to funds limitation, when making large purchases, you always have to check if your balance is enough to buy the item that you want.
Also, even if you are free from paying interests and late charges, some prepaid cards are inclusive of miscellaneous fees

What are some reputable prepaid debit cards in the market today?
Although there are many debit card offerings, here are two prepaid debit cards which have definitely proven their worth.

READY Debit Visa Card
With affordable minimum fees, this card is really a convenience. It claims to have anyone who applies, approved, so that is one thing less to worry about. It is reloadable through bank account transfers and direct deposits.

Bank Freedom Prepaid MasterCard.
Many debit card issuers screen applications like they would a credit card application. However, for this card, your credit history is not taken into consideration, so you will not have to worry about a troubled financial past. It offers convenience and affordability with only a few fees to pay to keep the account active. The card is sent as soon as it is approved.

Before applying for any prepaid debit cards, do your homework and research to get the most out of your card.

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