Pre-paid debit cards are a great way to avoid dealing with banks. Because they have no credit balance, anyone over 18 can apply and receive a card. As a result, they make it easier to avoid debt because the cardholder’s losses are limited to the money they have on their card. Some pre-paid debit cards even offer bill pay options, such as automatic deposits. And while these cards don’t build your credit, they are still safe because they are insured by the Federal Deposit Insurance Corporation.
Prepaid debit cards offer online bill pay
Many prepaid debit cards offer online bill pay. Unlike credit cards, prepaid debit cards do not affect your credit or build it. However, they lack the services provided by banks. However, there are many benefits of these cards and some of them even allow you to use them to make ATM withdrawals and earn rewards. After you have chosen the card that suits you best, you will be ready to make purchases.
Another advantage of prepaid debit cards is the privacy they provide. While debit cards are linked to a bank account, prepaid cards do not. This means that if a thief steals the card, they only get the money that’s on the card and not the financial information of the card owner. Moreover, a prepaid debit card is easier to obtain than a debit card linked to a bank account.
They are reloadable
Prepaid debit cards are a great way to avoid the hassle of carrying cash. The issuers of these cards will reload your account for a small fee – generally from $5 to $30 – and you can spend it anywhere you can use a credit card. The best part about these cards is that they’re reloadable, meaning you can keep reloading your card with money whenever you need to.
Because prepaid debit cards are reloadable, they can also be a great way to manage your finances. Many offer parental controls that allow parents to monitor their child’s spending and set spending limits. In addition, prepaid cards are safer than cash, since they can be blocked or replaced if lost or stolen. This gives you peace of mind when you’re out and about. While you might be tempted to spend more than you have on a prepaid card, you’ll be glad you did!
They are not tied to a bank account
A prepaid debit card does not require a bank account and can be used anywhere that accepts credit or debit cards. These cards do not require an account and can be obtained from a variety of places, such as grocery stores and gas stations. While a debit card linked to a bank account can be used to make large purchases and send money by mail, a prepaid card does not require a bank account.
As a result, prepaid debit cards are free from overdraft fees. While a bank account is required for all other financial transactions, a prepaid card doesn’t require one. A prepaid debit card will only allow you to spend the amount of money you’ve loaded on it. It also does not have a line of credit and cannot be used as collateral. However, many prepaid cards do come with monthly maintenance fees and upload fees of up to $4.95.
They are insured by the Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 in prepaid debit cards. This insurance is important for consumers because it protects their funds in the event of a bank failure. Many credit unions offer similar insurance. You should check with your credit union to make sure that your account is insured. However, some cards do not. Regardless of whether or not a card is insured by the FDIC, you should always read the fine print.
Prepaid debit cards are not a perfect substitute for a checking account, but they can be a good way to keep your money safe. Although you do not have any recourse if the issuer goes out of business, there are many that are protected by the Federal Deposit Insurance Corporation. The FDIC covers up to $250,000 in losses when a card company goes out of business. So, you should never spend your money with an uninsured card.