In the past few years, prepaid debit cards have quickly become all the rage; in fact, it seems as though no matter where you turn, advertisements are prominently displaying all of the great benefits of using this new form of plastic. Turns out, these advertisements aren't exaggerating: prepaid debit cards are a smart and flexible alternative to using more traditional debit and credit cards.
Here's the latest scoop on why prepaid debit cards are good for you - and your wallet!
No annoying overdraft fees. If you ever made a purchase on your debit card that exceeded your checking account limit, you've probably felt the pain of forking over a large amount of cash towards expensive overdraft fees. Similarly, credit cards aren't so kind towards those who exceed their limit, as credit card lenders can slap you with outrageous fees in return! Yet with prepaid debit cards, you're never at a risk for exceeding your account balance or landing yet another fee; you're restricted to the amount of money that's available on your card. If you don't have enough money for your purchase, your card won't go through - it's as simple as that!
Online security. These days, it's important to be vigilant when using debit or credit cards for online purchases; but of course, once your billing information is online, it's vulnerable to hackers and online thieves. When you shop with a prepaid debit card, you can rest easy in knowing that if your card information is ever stolen, there's only a limited amount that the thieves can take. And with Visa prepaid cards, you are assured of zero liability for fraudulent charges!
Approval Guaranteed! When applying for a traditional debit or credit card, you'll always need to go through a credit check before being approved - and for some people with poor credit history, this is often a breaking factor. Yet with prepaid debit cards, there's no credit check needed, since you're simply loading your own money onto the card. Bankers and lenders are happy that prepaid debit cards carry no credit risk, while consumers are pleased that they can have their very own "debit cards" without going through the hassle of a nerve-wracking credit check!