It is practically hard to survive in the modern world without using a credit card of some kind. A credit card comes in handy in all of those circumstances, from booking a hotel room to buying something online to filling up your car with petrol. So what precisely should you do if your credit isn’t the best and you’re not currently in a position to apply for a secured credit card? You might be in need of a prepaid debit card. What exactly are the advantages and disadvantages of getting a prepaid debit card?
Prepaid debit cards have the benefit of allowing use without concern for accruing debt. There is no large charge at the end of the month because the prepaid debit cards are paid for in advance. Prepaid debit cards are more like cash than credit cards in this regard.
Prepaid debit cards have several advantages, but the one that appeals most to those with poor credit is certainly the fact that you may use them without worrying about going into debt. You do not need to be concerned about receiving a huge bill at the end of the month because you must load money onto the card in order to use it.
Prepaid debit cards offer the enormous advantage of not requiring good credit in order to be obtained. You are ready to shop as soon as you pay the activation cost and make a deposit.
Being denied credit privileges is something that might be seen as both a pro and a con of having a prepaid debit card. This means that you can only spend up to the amount that has been deposited on your card.
One drawback of using a prepaid debit card is that there are considerably stronger reporting requirements than there would be with a regular credit card in the event that it is stolen. If you don’t report things in a timely manner, you could lose a lot of money. On many prepaid debit cards, there are also monthly maintenance fees that you need to be aware of. You don’t want to end up shelling out a lot of extra charges.