When it comes to making online purchases or simply paying bills, most consumers simply reach for their credit card, or the debit card that is attached to their bank account. But these cards don’t come without risk: credit cards require a credit check in order to be opened, and just one late payment can deeply gouge your credit rating. Debit cards do not require a credit check, but since a debit card is attached to your bank account, there is always the risk of an overdraw resulting in a negative rating on your credit report. And, there is the risk of your credit card or bank-issued debit card falling into the wrong hands, which could result in a thief having access to possibly a substantial amount of funds.
Prepaid debit cards, on the other hand, do not require credit checks for approval, and only offer as much money as you put onto them. The majority of prepaid debit cards, such as SpendSmart, are reloadable, which means you can use them time and time again. Simply add money as you need or want to, either via deposits made from direct deposit or from bank transfers. You can use the card issuer’s website, and often a smartphone app, to ensure that you’re aware of every transaction made.
Category: Debit Card