If you're having trouble getting approved for a credit card, a prepaid debit card may be just what you
need. Unlike many regular credit cards, debit cards do not perform a credit check when you apply. And
these cards come with other benefits as well.
How They Work
Prepaid debit cards are similar to both credit cards and debit cards. After getting approved for one,
you're able to deposit money into your new account. This is often referred to as "loading." The amount of
money you load on to your card is equal to your line of credit. When you swipe the card, the money is
subtracted from the amount you deposited. As long as you have money on your card, you can make purchases.
You can use the card anywhere that debit cards are accepted.
Having a prepaid debit card is similar to opening a checking account on a card. You can deposit money
whenever you need to, and spend within your account limits. This system helps keep you far away from
debt.
Major Benefits
One big advantage of prepaid debit cards is that they are safer to carry than cash. You can shop for
groceries, get gas, and purchase other items without the hassle of dollar bills crowding your wallet. And
prepaid debit cards are accepted all over. If you have a card with the MasterCard or Visa logo, it can be
used worldwide.
Another benefit of a prepaid debit card is that you don't have to worry about paying monthly credit
card bills. Since the amount at your disposal is equal to the balance in your account, you don't spend
money that you don't have. This saves the headaches involved with high monthly bills and balances.
It's easy to load money on to your debit card. Most cards let you reload any amount of money by
calling and authorizing a transfer of funds. You can also do this online or through an ATM. This lets you
control how much you want in your account.
Exploring your Options
Companies offer different types of prepaid debit cards. Before you sign up for one, check for
additional fees and features. One card that lets you transfer money for free is the ReadyDebit card. With
no credit checks and no security deposits required, you can begin using the card right away. It's issued
through Visa, so you can use it wherever Visa is accepted.
Another one to check out is the Visa RushCard. With this card, there are no annual or monthly fees.
You can use the card online or over the phone to make purchases. The RushCard also offers some shopping
discounts at participating retailers.
A prepaid debit card may be just what you need to give your credit a boost. Check through the
different options through websites. The application process is easy. Once you get the card, you can start
taking steps to get back on track in the credit card world.
