Prepaid debit cards started to take off in recent years as more credit card companies realized that a large segment of the American public was unable to qualify for any of their regular credit cards. In addition to this, even among the ones who qualified a small percentage often defaulted on their monthly payments and declared bankruptcy, causing huge losses for both issuers and cardholders. In fact, one of the most common complaints among credit card users is that they have a hard time qualifying for an appropriate credit card.
A company called Unilever started a marketing campaign around prepaid debit cards, making them an attractive alternative for people with bad credit. The cards were initially used by college students and were especially popular in Europe. These cards were quite similar to conventional credit cards, except that they had no fees attached. Many people found them appealing because they required very little initial cost.
Today, a lot of companies offer prepaid debit cards, most of which are affiliated with major brands. This means that consumers can easily get the cards from any of these issuers and can use them wherever the brand name cards are accepted.
Most prepaid cards work by charging a certain amount every month to the cardholder's bank account. They then withdraw the money from the bank at the beginning of the month. If the cardholder fails to pay off the bill, he or she must make an emergency payment. In many cases, cardholders can choose how much cash they want to withdrawal each month. The amount they are allowed to withdraw will depend on the current balance of their card.
To help make the card even easier to use, some issuers offer additional benefits, such as free rewards on purchases, travel, and gasoline. Also, some companies allow their cardholders to use their card anywhere Visa, MasterCard, and Debit MasterCard are accepted. These features make the card an extremely flexible choice for shoppers.
While prepaid debit cards might not be the ideal solution for everyone, if you're looking for a low-risk, low-cost, easy-to-use option, you might want to consider using them. for your finances. Just remember to look for reputable companies that offer good customer service and that can answer any questions you may have before you buy your card.
Before you decide to purchase your card, look for information about the company from independent review . . . . . . sites. Look at how often they update their websites with news updates and any special deals that might be available, like low rate holidays or rewards programs.
Finally, make sure to carefully read the terms and conditions of the card before you agree to make the purchase. You want to make sure that you understand everything before you apply. Don't hesitate to ask questions that you don't understand, or that you don't feel comfortable answering. – your card may just end up costing you more money in the long run.