Prepaid debit cards were created for individuals with a damaged or no credit history. There is no credit check or chexsystems verification.

The only requirement is that you comply with the US. Patriot Act, which basically says that your identity will be checked. So as long as you are who you say you are, then you will be approved.

These are not traditional unsecured cards. Instead you must first deposit funds into your account and then you can make purchases. However you will not be charged any interest fees, late payment fees, overdraft fees, or over the limit fees instead you can only spend the money in your account.

Where will it be accepted?

It will be accepted over the phone and online. Additionally you can use it world-wide and make purchases such as reserving hotel accommodations, buying gas at the pump, renting a car…

How to deposit money

Direct deposit is the most common form and usually it is free. You can also purchase a money pak and load funds at thousands of retail locations (grocery stores, gas stations, money stores…). You can also transfer funds from a bank account or pay pal account.

Bill Payment

You will be given access to an online bill payment center. This will allow you to pay your bills and manage your money. You can set up one time payment, recurring payments, and future payments. The fees for this will vary we have seen it cost upwards of a $1 and we have also seen it for free.

Fees

Each offer will vary with fees. This is incredibly important feature to research for obvious reasons. You should expect to pay roughly $10 a month; however you should also have the option of no monthly charges if you deposit enough money (we have seen roughly $3,000 a month) or make so many purchases every month. We have seen some cards charge up to $19.99 a month which is simply too much!

Security & Fraud Protection

Your card will be issued as either a Visa or a MasterCard. These cards will be covered by a Zero Liability Policy. This means that should you ever lose your card or have it stolen you will not be responsible for unauthorized purchases. In other words you will not have to pay for purchases that you did not make.

Need Cash

When you need cash, you will have access to millions of ATM locations. Additionally you can also ask for ‘cash back’ at the grocery store.

In sum, prepaid debit cards are a great alternative if you have made some financial mistakes in the past or just don’t have credit. They can save you a bundle of money on check cashing fees and purchasing money orders.

For more about a Pre Paid Card created for individuals with a Bad Credit or no credit rating visit us.