Prepaid Debit Cards to Bank Debit Cards

By Albert
In Financial Tips
06/02/10 at 21:10
3 Comments

Prepaid Debit Cards to Bank Debit Cards

Knowing how your money regulates nowadays is very important if you are the type who would like to cut back on as many fees as you possibly can. Simply because for the savvy type person, prepaid debit cards or regular bank debit cards each has its own edge. And by understanding them and the fees that come along side it, you can be saving much more than you may have imagined. A prepaid debit card although often time is regarded as the card with the highest fees, it is not true to say that it is not the way to go because like I said, each type of card has its benefits and its flaws, and by learning them will you better your self in making cheaper, wiser money decisions, but more productive ones. First lets slowly dismantle what a prepaid debit card is and what its uses are for.

Benefits of Prepaid Debit Cards

Prepaid debit cards are most often used by college students. Reason being is because it doesn’t require parental consent. Meaning, unlike the regular bank debit card — a college student lets say, doesn’t need a parent’s approval for him/her to open their very own prepaid debit card. Also, another reason why most students go with the prepaid debt card first is because they don’t have to risk going deep into debt, high interest payments, or late fees, with the additional convenience of not having to drag around real cash where ever they go. Second, another nice aspect of the prepaid debit card is that no matter how bad their credit score is, they cannot be turned down when wanting a card. However, like with most cards, there are some flaws that come along side it. But first, lets sum up all the benefits of the prepaid debit card all in one neat list.

Safety: Prepaid cards are a good option for people who are not able to open a bank account and don’t want to carry cash with them all the time.
Shop on the web: Without any sort of card, you are not able to purchase anything online that is looked upon as equal currency. Having a prepaid debit card can change this.
Educates: The prepaid debit card is equipped with a bit more fees, however most of times, there are ways to work around the fees which can in turn teach you to become more financially responsible. Requires more maintenance generally.
Applicable with rentals: In most places, a prepaid debit card can be just as good as a regular debit card when wanting to rent out a car and any other form of service (which can come in handy).
No parental consent needed – Parents don’t need a say to get a prepaid debit card.

Flaws of Prepaid Debit Cards

More rules: More rules meaning more possibilities to getting dinged and fee’d. Although more rules can work both ways because it can educate you to become more financially responsible, it can sometimes be a bugger when paying out of your pockets when you are dinged.
Does not improve credit score: If you are stuck with a prepaid debit card because you have a low credit score, using the prepaid debit card won’t do you any good in terms of raising your credit score. There is a reason why it is called credit score — it requires you using a credit card.
Money holds on car rentals & hotel stays: Some car rental companies and hotels may require a credit card to make a reservation. At check-in, hotels will put a “hold” on the estimated amount of your stay, making those funds unavailable for purchase for a period of time. But like I said, there is generally a work around to this. You can avoid a ‘hold’ being placed on your card by first checking with your credit card, and then using the prepaid debit card for final payment when you return the car or at the end of your hotel stay.

Comparing prepaid debit cards to bank debit cards in general is sort of like comparing apples to oranges. It all depends. There are some offers on prepaid debit cards that I’ve found to be astonishing better than most bank debit cards, and some not so great. The key to really benefiting from this is to find a plan that works for you that has all the features you need at your disposal. If you are the type who is really disciplined and who doesn’t withdraw from the ATM much or transfer funds, the general fee per action plan may be for you, however, for me it is not possible. That is why I currently use the Silver Prepaid MasterCard because I know I am the type of person who would check on funds often and withdraw from ATM machines that other prepaid debit cards may charge for. In turn, the Silver Prepaid MasterCard is saving me a lot more since I have made the proper switch that matched my needs.

If you are obsessed with the ATM machine and with the funds on your debit card as much as me, I am happy to tell you that the Silver Prepaid MasterCard comes equipped with:

FREE Direct Deposit.
No more check cashing fees!
No credit check.
100% Approval.†
Use everywhere Debit MasterCard is accepted!
FREE unlimited purchase transactions.
FREE account alerts – email and SMS text messages.
Pay any bill: rent, insurance, phone, utilities.
Load cash at more than 100,000 retail locations.
Take control – no overdraft fees or interest charges.
Withdraw cash at millions of ATMs.
Low monthly fee – $3.95.

All the features you could ever want at one low price of $3.95 with no hidden fees.

After getting the Paypal student account and really benefiting from it because I usually do a lot of transactions through Paypal, and now with the addition of the Silver Prepaid MasterCard, I am dodging a lot more fees and not to say, saving a lot more than I used to.

What prepaid debit cards do you use and recommend and particularly why?