Prepaid Debit Cards: To Debit or Not to Debit
The Pros and Cons of Prepaid Debit Cards
In today’s day and age, you just can’t live without a credit card. From staying at a hotel to renting a vehicle, even renting movies, you need a credit card to do it. So how do you survive in today’s plastic-orientated world if your credit doesn’t qualify you for a credit card and a secured credit card is out of the question? Prepaid debit cards may be the answer you’ve been looking for. But what are the pros and cons to prepaid debit cards? We’re going over them for you right now.
They Make Online Purchases Possible
One of the biggest benefits of prepaid debit cards is that they enable you to make purchases online when you would otherwise not be able to. You can use prepaid debit cards just like a credit card when making online purchases, opening up the world of online shopping to you.
No Worries about Going into Debt
Another advantage of prepaid debit cards is that you can use them without worrying about going into debt. Since the prepaid debit cards are paid for in advance, there’s no big bill at the end of the month. In this aspect, prepaid debit cards are more like cash than like a credit card.
Good Credit Not Needed
Another benefit of prepaid debit cards is that you don’t need good credit in order to qualify for one. Simply pay the fee and pay for the prepaid debit card and you’re on your way.
Stricter Notification Requirements
One of the drawbacks of using prepaid debit cards is the fact that the notification requirements for reporting the debit card stolen is much, much more strict. You could be out a lot of money if you don’t report the debit card stolen in time. Another thing to consider is the dispute resolution services offered by credit card companies are not often offered by prepaid debit cards.
No Credit Privileges
Another drawback of using prepaid debit cards is the fact that you won’t be offered any credit privileges like you are with a credit card. You will be paying for everything up front and will only be able to purchase what you could afford to pay cash for, although that can be looked at as a pro as well as a con.
Hidden Fees
If you do use prepaid debit cards, make sure that there aren’t any hidden fees. Some prepaid debit cards will charge you a monthly fee each month if you don’t use the entire balance on your card. When using prepaid debit cards, it’s important to avoid excess fees and charges.