Prepaid Debit Cards Review

Cash is nice, but plastic is better. Why? Flexibility and security.

Flexibility: With a credit or debit card, you can shop online, purchase an airline ticket, rent a car and so much more. You can be the chief officer of all your financial activities, directly from your home or office – paying your monthly bills and managing your account online. Pretty amazing. Cash can't do that. But, for many, cash is the only form of payment they are eligible to use.

Millions of people in the U.S. do not qualify for credit cards due to poor credit history (or no credit history at all), bankruptcy, a record of credit delinquencies and a host of other reasons. As the majority of businesses (big and small) move online, however, it is a necessity to have some form of plastic to shop, book travel and play online. If you are unable to qualify for a credit card, we suggest a popular alternative: a prepaid debit card. The best prepaid card companies, such as American Express, Mango and NetSpend, do not require a credit check or any credit history for you to qualify. Age and U.S. citizenship are typically the only qualifiers for you to receive a prepaid debit card: You must be at least 18 years old and have a valid social security number. For more information, please visit our Learning Center where you will find additional articles about prepaid debit cards.

Security: You can stick cash in your wallet, back pocket, shoe or wherever, but no matter where you stash your cash, it will never be as safe as a prepaid debit card. Cash can be lost or stolen, and once it's gone, it's gone. Many companies, like American Express, offer protection. So, if you lose your card, or if it's stolen, simply call customer service to ensure that your funds are recovered and transferred to a new card.

Prepaid Debit Cards: What to Look For

Just so we are all on the same page, we want to clarify that a prepaid debit card is not a credit card. You can use the card to complete all online transactions like a credit card, but the prepaid card will in no way help or hinder your credit. You will not pay interest on the money you spend, because you haven't borrowed it from anyone. It is your money, coming directly from your pocket.

Fees & Charges
A prepaid debit card usually comes with a host of fees and charges, so make sure you know what the policies are before signing up and loading funds onto any prepaid debit card.

Although each card has its own list of charges, some of the most common fees include:

• Monthly service

• ATM withdrawal

• ATM balance inquiry

• International conversion

• Card replacement

• Paper statement

Because of the many fees associated with a prepaid debit card, we do not recommend them for everyone. If you do qualify for a line of credit, we suggest that you use an actual credit card instead of a prepaid card.

Flexibility
The customer service agreement, privacy policy and fee schedule for each prepaid card is quite lengthy and includes several paragraphs of fine print. Our advice: Read it word for word. Don't skip over anything. In these documents, snuggled between the legal jargon, you can learn everything you need to know about the prepaid card. It is here that you will learn just how flexible the prepaid debit card will be with overdraft fees, international purchases, security and more.

Features
You may be in a financial situation that makes you feel uneasy or excluded from many exciting credit offers. Well, prepaid card companies know the economic climate and know that more and more people must choose a prepaid option to survive. Several years ago, you couldn't find a prepaid debit card that offered any kind of cash back or rewards programs. Now, corporations like American Express and Visa are changing the rules and offering enticing incentives, just like a regular credit card.

Some of our favorite features from these companies include online bill pay, account management, mobile banking apps, and text and email alerts.

Funding Options
Yes, a prepaid debit card may not be your ideal long-term fiscal solution, but it can help you get back on a financial path that works for you. You load the money onto your card so you know exactly how much you have and how much you can spend each month. Choose a card that has several reload options, including PayPal, direct deposit, bank transfer and Green Dot MoneyPak.

Help & Support
There is a lot of fine print that you must muddle through to understand a prepaid debit card and what it can actually offer you. But you don't have to slosh through the paperwork alone. Look for a card that offers excellent customer service, including telephone and email support, as well as a well-written FAQs section.

You may be one of the millions haunted by a low credit score or poor credit history, unable to qualify for a loan or credit card. If you are in this situation, then we do believe that a prepaid debit card is a sensible solution for you, as you will have the flexibility you need to purchase everything you need with your prepaid plastic.

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