Should You Get A Pre Paid Debit Card?

2007-05-02 10:04:19

( Financial )



Pre paid debit cards, also known as stored value cards, are cards you can use for your financial transactions. Pre paid debit cards is similar to credit cards in a number of ways. Pre paid debit cards are usually accepted where credit cards are, including major retail stores and online shops. It can also be used for purchasing items or withdrawing money at ATMs.

The main difference between a pre paid debit card and a credit card is that instead of extending credit, a pre paid debit card requires you to deposit money into the card before you can use it. There are various ways to load money into your debit card, such as depositing cash or via wire transfers.

Why should you get a pre paid debit card? A pre paid debit card allow you to keep track and limit the amount of money you spend. This allows you to stay within your budget and not accumulate debt. Debit cards are also easier to acquire, since these cards do not require you to create a new bank account or establish your credit. Debit cards also free you from high interest rates that credit cards usually have, while giving you similar security features. Also, carrying a debit card is safer than carrying the same amount of cash around.

On the downside, instead of interest, pre paid debit cards typically require you to pay more fees than other cards, such as applications fees and annual fees. Some cards charge you with a regular monthly fee for additional services, such as helplines. Some cards also require you to pay fees upon depositing money into the card.

It is thus important to compare various pre paid debit cards before selecting one. When choosing, pick one that has low fees but still offer good service.


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