Prepaid Debit Cards: The Pros and Cons


These days, there are a wide range of financial products available. Prepaid Direct Debit cards are just one of these. These particular cards are aimed at those who do not have a good credit card history. They can also be used by those who have not yet developed a credit card history. Signing up for or purchasing for a program that these cards provide, will allow individuals to purchase things wherever the card is accepted. This includes retailers who are on the internet. A prepaid direct debit card is very flexible when it comes to purchasing with it. Signing up for it is incredibly easy.

Such cards are very handy for many reasons. If an upfront payment is required when purchasing on the telephone or on the internet, these cards can be used. The telephone or internet usually do not allow money orders, checks, or cash as traditional retailers do. Prepaid debit cards can be used in the same way as a traditional credit or debit card. Particularly when purchasing over the telephone or on the internet. Since this is the case, a prepaid debit card will give a large amount of choices whilst you are shopping.

If you have experienced credit card-damaging events such as repossession, divorce or bankruptcy, it will be harder for you to be successful in obtaining a credit card. It will be much easier to apply for a prepaid debit card. A credit score check, or credit check will not be required. All retailers have the option of using a prepaid debit card just as they do for credit cards. However, ChexSystems cannot be used for prepaid debit card applications. This means that those who have had previous problems with checking their accounts, still have the opportunity to apply for a prepaid debit card.

There are many other benefits that come with prepaid debit cards. Some of these include: Automatic Teller Machine usage, no overdraft charges, and direct depositing. It is very easy to set up a direct deposit for prepaid debit cards. You can also set it up so that a government benefit check can be automatically added to whatever the balance on your card is at that time. Any items you purchase that may be above the amount on your card will be automatically declined. As a result of this, you will not be charged for over drafting. Debit cards also allow you to take money out from an Automatic Teller Machine. Most banks will have a list of locations where you can do this free of charge.

Prepaid debit cards still come with many features that a traditional credit card has. It is also accepted anywhere in the world. Always be sure to do as much research as you can and shop around before selecting a prepaid debit card. Compare the offers you have been given to decide on what the most affordable option is for you. A prepaid debit card really is the perfect solution for those who are unable to apply for a credit or debit card.

Sourced from: dugout

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