If you belong to this set of consumers, then we recommend that you read the remainder of this article. Below you will discover some basic facts as well as the advantages and disadvantages linked
with the use of this prepaid card program.
What are Prepaid Debit Cards?
A prepaid debit card is a very unique card program. The reason for this is that this card is actually a combination of a credit card and debit card.
Your prepaid debit card can also function like an ordinary credit card. You can use it as a cash alternative to pay for your groceries, restaurant bills, and even for buying items online.
Benefits and Drawbacks Associated with Prepaid Cards
This card is actually a good tool in budgeting and managing your finances. You will also realize that a prepaid debit card can actually protect you from identity theft and from losing the money you have in your bank account.
Some of the disadvantages associated with the use of this credit card for bad credit include: numerous fees and charges, no interest earned on the initial deposit, and its exclusion from the Consumer Credit Act.
Aside from the disadvantages mentioned above, consumers with poor credit ratings cannot use prepaid debit cards to repair bad credit history.This is because in these plastic card programs, cardholders will not be given credit lines that they can manage responsibly.
Still, it is important to note that the beneficial features of prepaid debit cards normally outweigh their drawbacks. So, you can still have the assurance that this card will work to your advantage.
More info: Insights You Need to Know About Prepaid Debit Cards