Prepaid Debit Card Information

Are you familiar with prepaid debit cards? What are they and what are they for?
Well, are you having a problem controlling your spending because those credit cards in your wallet are a little too tempting to use? Not only are you spending money that you don't have yet but you're also incurring debt on interest owed. Just like the US government, right?
So why not cut up those cards and go cash-only? Well, ask people who can't get a credit card or a checking account because of a bad credit rating. There are times when you just need some plastic: making reservations for hotels, rental cars and airline flights. And what if you want to buy something online? It's terribly inconvenient and sometimes not feasible to send a check or money order.
This is where prepaid debit cards come in.

A prepaid Visa or MasterCard is a pre-funded, reloadable card. They are similar to debit cards attached to a bank checking account, except you don't need to go to a bank
to open an account and you don't undergo a credit or Chexsystems check. So how do you get a prepaid debit card? Easy, just fill out an application online:

Or, you can go to one of the many convenient retail locations: Walmart, K-Mart, 7-Eleven, major drugstore chains such as Walgreens or CVS, major grocery store chains such as
Albertsons, HEB or Safeway, check cashing outlets...there are many, many others. In some cases you will purchase the card (usually about ten bucks), fill out a form and make a deposit all at the retail location. Some cards require that you buy the card at, say, 7-Eleven, then go online to activate it. Soon, afterward you will be issued a personalized card that looks exactly like any other debit card. To load it with money, just go to one the many participating retail location, hand the clerk your card and the cash you want deposited and they will make the transaction. Your funds will be available almost immediately. Another way to load your prepaid debit card is to have your paycheck or government check set up for direct deposit. Once you have a balance on your card, you may use it anywhere Visa or Mastercard debit or credit cards are accepted, including online purchases, phone purchases, retail stores, bill payments and ATMs.
For those wanting to control their spending, one of the best things about using a reloadable prepaid debit card is that it will not allow you to spend more than you have. Unlike debit cards attached to checking accounts, which often have some overdraft leeway, the reloadable prepaid debit card only allows you to spend what balance you have on the card. And, of course, with checking accounts there's always the danger of incurring some horrendous overdraft charge. No chance of that with a prepaid debit card. Once the money is gone, your card will be refused until you put more money on it.
One way some people manage their budget is they have one card set aside solely for monthly bills and another card loaded with money for discretionary spending. This is a way to separate your funds so you don't start spending what you need for your monthly obligations. Typically, there will be a website where you can log-in to check your balance or you can use an ATM to see how much you have left.

Now, we all know unexpected things always come up in life and sometimes you do need more than you have on hand. The AccountNow card has a feature called iAdvance that allows payday loans.
If you have your monthly check set up for direct deposit, you can take out a small-cash loan that will automatically be taken out of your next paycheck. If you are trying to build a credit history, this will help.AccountNow also has a bill pay feature that will compile and report your payments to the credit bureau PRBC (Payment Reporting Builds Credit) to further build your credit history.

Some cards, such as the UPside Visa Prepaid Card, are marketed as being for teens. These are a good alternative if you give your teenager an allowance. It's safer than carrying cash and safer than allowing them the use of a credit card, they can make purchases online (where they spend a lot of time anyway) and in many cases they can still begin to build a good credit history. And you can actually log on and see where your child is spending.

So we see that prepaid debit cards are fast and easy to use, safer (and cleaner) to carry than cash, more fail-safe than checking accounts (and writing out paper checks is pretty old-fashioned anyways) and available to those who aren't able to get a checking account or credit card, can be used anywhere normal debit card or credit cards are accepted and can even help you build a positive credit history. So what are the drawbacks? When you are comparing different cards you will want to check out the
schedule of fees. Some of the possible fees are: reloading charges by retail locations; transaction fees (online typically $1, brick and mortar stores typically $2); ATM fee; ATM balance inquiry; monthly charges, which can sometimes be waived with a minimum number of purchases or a certain load amount. Another downside of prepaid reloadable debit cards is that you are sometimes not able to use them for monthly online subscriptions.

There are ways to minimize the impact of any fees, such as withdrawing cash if you plan to shop at a number of different stores in one day and using direct deposit to load your card, which is always free. If you find a card that works for your lifestyle, you have found something that just might help better stick to your budget. And if you can't get a credit card or checking account because of bad or no credit, a prepaid reloadable debit card is just what you need to make purchases online, pay bills and make reservations.