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Monday, September 26th
Besides the typical debit card you get with your savings or checking account, prepaid debit cards are a popular option for people with no credit - or bad credit. These cards represent a great way to get the flexibility of a credit card with the security of a debit card, and often give you the same perks and rewards as a traditional credit card.
What are Debit Cards?
Most of us are well-acquainted with debit cards. Attached to a savings or checking account, these cards typically have the flexibility of a credit card - swipe anywhere a traditional credit card could be used - with the benefit of helping to control spending. In other words, if you don't have the money in the bank, your purchase won't go through. That makes debit cards popular for people who are trying to establish (or reestablish) good money management habits, or who just don't like the idea of having an open line of credit out there.
But, there's a second type of debit card that can also be a great tool for managing spending, as well as gift-giving and other situations. Sometimes referred to as a prepaid card, this credit card often comes with a lot of perks - sign-up bonuses, rewards points, and more - while still limiting the amount of money available to spend at any given time. Like a traditional debit card, if you don't deposit funds to this type of debit card, no purchases can be made.
For that reason, this kind of debit card is ideal for people who have bad or no credit. Because you have to deposit money to the card in order to use it, the credit card company doesn't care about your credit history: you're backing your own purchases with your money.
Prepaid Debit Cards: What To Look For
If you've decided that a prepaid debit card is what you need, there are a few ins and outs to keep in mind.
TopConsumerReviews.com has partnered with Lending Tree to help you find the best Debit Cards currently available. We hope this information will give you all the tools you need to choose the right debit card for you!