If you are looking for information regarding prepaid debit cards, then you have surely stumbled upon an excellent article. Below we will discuss some of the basic features and characteristics of prepaid debit card programs.

Basic Facts About Prepaid Debit Cards

1.Prepaid debit cards have unique characteristics. A prepaid debit card is actually a combination of a regular credit card and a traditional debit card program. How is this possible?

As we all know, debit cards are designed in such a way that they require cardholders to load money onto them, before they can be used in making purchases as well as in paying bills and other expenses. This is also true about prepaid debit cards. Before they can be used in card transactions, both offline and online, they need to contain first adequate funds that will serve as the balance that cardholders can use in paying for the items and services they need.

Also, prepaid debit cards function just like regular credit cards. In what way? Well, they are normally accepted as great substitutes for credit cards in commercial establishments that rely on card transactions. Prepaid debit cards are even accepted in stores and online shops which recognize and accept credit cards but not debit card programs.

2.Prepaid debit cards are also known as credit cards for bad credit. Since issuers of prepaid debit cards do not run credit checks on their prospective cardholders, consumers can receive the plastic cards they need, regardless of their credit scores. So, even if a consumer may possess poor credit ratings, he can still be granted the prepaid card he intends to use in making purchases and in paying his bills and expenses. This is the reason why prepaid card accounts are also considered as credit cards for bad credit.

3.Prepaid cards cannot help consumers repair bad credit. Despite their many beneficial features, prepaid card accounts cannot help consumers repair bad credit history. This is because in these card programs, cardholders do not receive credit lines from lenders and credit firms. Instead, the consumers themselves are the ones loading money onto their prepaid card accounts. So even if a consumer will resolve to responsibly manage his credit card for bad credit he will soon discover that his efforts did not have any impact on his credit profile and that they did not even help him repair his bad credit standing.

We hope that this short discussion helped you learn some basic facts about prepaid debit cards.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

If you plan to use your debit card for purchasing online, what important steps should you remember?  Check out the following reminders on how to safely use your debit card for online shopping:

Check the security of the website. Make sure that the website address begins with “https” (Hypertext Transfer Protocol Secure), indicating a secured server.  When filling out forms or providing personal details, you should always check the https.

Check the credibility of the merchant. Remember that not all online shops are legitimate.  There are hundreds of merchants that set up fake websites to victimize unsuspecting customers.  Before making a purchase, check the background and reputation of the seller.

Even if the website shows a BBB (Better Business Bureau) logo, it is better to check from the BBB if the merchant is truly registered and that there are no cases of fraud filed against the company.

Check the merchant’s policy. Read the seller’s policy particularly with regards to purchases and returns.  In case your items are shipped in an unsatisfactory condition, you’ll know your options.  Does the seller offer warranty protection?  Will the product be replaced or can you refund your payment if the item is defective?

You must also check the seller’s Privacy Policy as to how they use customer information that they collect to process an order.  Will your information be stored in the company’s database?  Make sure that the seller will not sell your information to other merchants or third parties.

Submit a minimal amount of cash in your debit account. Do not deposit a large amount of money in your debit account.  To be safe, submit only a sufficient amount of cash that you need to make the purchase.

Monitor your debit account. Regularly monitor your debit account especially after your purchase.  Take note that the moment you checked out and paid with your debit card, the bill will be automatically deducted from your account.

In case you are billed incorrectly, notify the merchant immediately.  Debit cardholders only have 2 days to report erroneous or fraudulent charges. If you report within two days, you’ll only be liable to pay $50.  However, if you fail to inform your issuer about unauthorized charges within two days, you will be liable to pay up to $500.  After 60 days, you may be forced to pay the complete charges.

Protect your computer system. Is your computer protected with a reliable antivirus and anti-spyware software?  Don’t forget to check if your antivirus is updated.  Purchasing an antivirus program is definitely a wise and important investment even when you do not make online purchases.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Many people who cannot get approved for a regular credit card because bad credit may opt to use a prepaid debit card instead.  While there are many advantages in using a debit card such as not having to pay interest rates and having more control with your spending, consumers need to be aware of the risks associated with debit card payments.

Apparently, there is a greater risk involved in paying with a debit card than there is in using a credit card.  In this article, let’s discuss what these possible risks are along with some tips on how to safely use a debit card.

Limited liability protection. Credit cardholders usually enjoy a $50 liability protection on fraudulent transactions and there are some credit cards that even provide zero liability.  With a debit card, you can get the $50 liability protection on unauthorized charges but only if you will report it within 2 days after the transaction was made.  Beyond that time period, a debit cardholder may be required to pay up to $500 or pay the entire charge, whether it was made with or without the account owner’s consent.

More difficult to get refunds. In case there’s a problem with the purchase you made, it will be completely up to the seller if you will be given a refund or not.  Remember that unlike credit cards that are paid at a later time, debit card purchases are instantly paid the moment you made the purchase.  That means, the amount of purchase will be automatically deducted from your funds as the merchant ships out your order.

The problem with this arrangement is that the customer may receive a defective item or may not receive the item at all.  Of course, customers can always dispute but since payment has been made, but if the merchant refuses to recognize your complaint, then you just lost your money.

To avoid being ripped-off, consumers are strongly advised to purchase only from reputable merchants, especially when purchasing online.  Check the seller’s rating and track record of sales.  What do past customers say about this seller?  More importantly, understand the merchant’s policy on purchases, returns, refunds, warranty, etc.

Your funds can be placed on “hold”.  Some establishments like hotels and car rental companies may place a “hold” on your funds aside from your bill. That means, your available cash in your debit account will be inaccessible to you for a specific time period.  For instance, the hold may last until the last day of your stay or until you return the rented car.

While the amount on ”hold” will be returned to you, such “holds” may lead to overdraft charges, especially there is insufficient funds in your account.  Therefore, be sure to inquire about the merchant’s policy on “holds” before using your debit card for payment.

The danger of identity theft. Technically, it is much easier to obtain debit card information and use them on unauthorized transactions without the cardholder’s knowledge.  This is why debit cardholders need to be cautious.

To avoid serious damage, consumers are advised not to link their debit cards to their savings accounts.  Therefore, in case identity thieves manage to steal their information, their bank accounts will not be drained.  In addition, see to it that you are using a secured website and that your computer has an updated antivirus protection before paying with your debit card online.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

With many credit options available in the world of finance, a lot of people think that debit cards and credit cards are essentially the same. Whether these plastic cards are prepaid or secured does not matter at all. What is important is that these cards provide the convenience of shopping without the use of cash.

But in reality, the differences between a prepaid debit card and a secured credit card are of great importance. How come? By knowing the distinction between these two card programs, you can be guided in choosing the right plastic card that will work best with your financial status. This way, you can avoid falling into debt traps and paying for large financial obligations.

Now, let us discuss how these two card options differ from one another.

Differences between the Two Card Options

Let us use several criteria that will point out how a secured credit card differs from a prepaid debit card. These criteria are:

1.The purpose of the initial deposit – Both secured credit cards and prepaid debit cards require the submission of cash deposit to make up for the applicant’s bad credit. However, issuers of secured credit cards usually ask for a minimum of $200 security deposit to open an account.  The deposit will serve as the credit limit at the same time.

On the other hand, debit cardholders are not provided with a credit line.  Once a debit card is used, payment is automatically deducted from the debit account.  Hence, a debit cardholder can only use his/her card while there is existing funds available.  When the balance runs out, he/she must make a new deposit before the debit card can be used for new transactions.

2.Bearing of the card transactions – The payments made on a secured credit card is often submitted to credit bureaus. This way people with bad credit can monitor the progress of their credit ratings. On the other hand, the transactions made using a prepaid debit card are not notified to credit authorities. They do not have bearing on your credit report, because you are actually using your own money.

3.Rates and Charges – When a secured credit cardholder fails to pay back the balance on time, he/she will be incur interest rate charges.  On the other hand, interest rates do not apply to debit card transactions because the charges are automatically paid using the money deposited in the debit account.  However, additional charges may apply for each transaction made, depending on the debit card issuer’s terms.

After this discussion, we hope that you can now point out the distinction between these two plastic card options. This way, you can decide which of these two card programs you should take.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

To rebuild bad credit history, you need to open a new credit account. By responsibly managing this account you can show lenders that you can be entrusted with new credit lines once again.

But, what type of credit account should you take to start re-establishing your credit worthiness? Well, you can always get a prepaid debit card. What is this debit card all about? How does it function? And how can you use a prepaid debit card wisely? Let us find out the answers to these queries.

What are Prepaid Debit Cards

Prepaid debit cards are card programs usually offered to those who have bad credit history and to those who are yet to establish credit. This is because some prepaid debit card issuers do not perform credit check on their applicants. Since they are usually offered to people with bad credit, these cards are also known as bad credit credit cards.

Still there are basic requirements for this program. An applicant should be at least 18 years old and with a stable source of income. The applicant should also provide some identification papers and a filled out application form. After filing these documents, the individual can instantly get approved for the card. He would just need to wait for the card to arrive via mail.

How Prepaid Debit Cards Function

Bad credit credit cards actually function like standard credit cards. A person can use his prepaid debit card to make hotel reservations, shop online, book flights and even rent cars! A bad credit credit card holder can also use his card wherever credit cards are accepted. He can use it to make purchases and even to pay monthly bills.

However, before you can use a prepaid debit card, you have to load money onto it first. The money you load on your credit card for bad credit will serve as your credit limit. But what if you go beyond your credit limit? If this happens, you can no longer use the card. Your future transactions using the card will be declined until you are able to re-load cash onto your card again.

Tips on Using the Card Wisely

1.Always check your account balances. Before using your debit card, check your account and make sure that you have available funds.  This will allow you to enjoy the continuous usage of your prepaid debit card. This will also help you avoid paying declined transaction penalties.

2.Allow the card to teach you basic budgeting. The premise of using a bad credit-credit card is to teach you to spend only within your means. Avoid loading a large sum of cash in your debit account as it can tempt you to spend on unnecessary items.

Instead, consider your monthly budget before deciding how much you can load onto your prepaid debit card. You may decide to use your card to pay for your groceries and bills. So you might as well put the funds allocated for these expenses onto your bad credit credit card. This way you can learn how you should manage your finances and card the right way.

We hope that this short overview about prepaid debit cards allowed you to appreciate what these cards can do. We also hope that the two tips we have listed above can help you see ways by which you can manage a prepaid debit card wisely.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Would you like to rent a car using your prepaid debit cards?  Generally, many car rental companies only accept credit card for payment.  But as more and more consumers prefer to pay with their debit cards, some car rental companies are willing to accept this method of payment.  Nevertheless, you need to be smart about it.

Below are practical tips and how to use a debit card for renting a car:

1. Check the car rental company’s policy. You can check the policy of different rent-a-car companies by checking out their website or calling the customer service number.  While some companies may strictly require a credit card, some companies may have more relaxed policies with regards to payments.

2. Be prepared to wait in line. Paying with a credit card gives you the option to pay online.  However, if you want to pay with a debit card, the car rental company may require more proof to verify your credibility.

3. Ask if you can pay with your credit card. Despite what is stipulated in the policy, some car rental companies may also accept debit card payment, if you make request.  Thus, it is always worth the effort to ask if you can use your debit card.

4. Be aware of “holds” and “blocks”. A lot of merchant impose a “hold” or a “block” to the cardholder’s checking or savings account to ensure payment.  Thus, aside from the cost of the rental service, you may need to reserve extra funds in your account which will be “frozen” or put on “hold” for 1 day to 14 days, depending on the company.

5. Make sure your debit card is compatible. Some merchants only accept debit cards with Visa or MasterCard logos.  If your debit card has different logo, you may want to check first with your prospective rent-a-car company if they accept such type of debit card.

6. See to it that you have good credit. Some people may not get approved for a regular credit card because of a poor credit history.  For this reason, rental-a-car companies do a credit check before accepting a transaction.  Take note that each time an inquiry is made in your credit report, it will also show up in your file.  Too many inquiries can send out a negative impression to prospective creditors.   Hence, if you are aware that you have bad credit, you may choose to pay in cash instead of using your debit card.

7. Prepare proofs of ID. Some rental car companies may ask to see proofs of identification such as auto insurance documents or recent utility bills.  The name that appears on these documentations must be the exact name that appears on your debit card as well.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

What’s great about debit cards is that you can use them like a credit card without the risk of debt build-up.  Nevertheless, using a debit card indiscreetly can still get you into trouble.  In this article, let’s talk about ten best tips on how you can use your debit card in the most advantageous way:

1. Put your personal spending in check. Although you can only use your debit card if you have an available balance, there is still the tendency to spend your funds on unimportant purchases.  If you’re having trouble controlling your spending, avoid saving a large amount of cash in your debit account.

2. Monitor your purchases. To keep track of your spending, make it a habit to write down each purchase or each transaction you pay with your debit card.  Keeping a record of your transactions can help you manage your debit account more effectively.

3. Avoid overdraft fees. Although exceeding your limit is not allowed, there may be instances when your purchase is accepted even it exceeds your available balance.  However, you will be charged with an overdraft fee which can cost $30 or more.  Avoid such fees by checking your account first before making a purchase.

4. Look out for “holds”. Some hotels and rent-a-car companies may hold some of your available funds in exchange for a reservation.  In this case, you want to make sure that you understand the exact “hold” amount and how long it would be held by the merchant.  Better yet, you may consider using a credit card or paying the bill in full with your debit card.

5. Choose a strong PIN code. A recommended PIN code is a random combination of digits that has nothing to do with your personal information such as your birthday or anyone in your family’s birthday or your wedding date.

6. Check your account often. Be sure to check your debit account online regularly especially after making a purchase.  Check the exact fees that you incurred from the transaction.  The Federal Law protects debit cardholders from fraudulent transactions but only up to $50 and you need to inform your bank within two days after the transaction was made.

7. Do not link to your savings accounts. To be safe from fraud, it’s best not to link your debit account to your savings account.

8. Do not use your debit card for large purchases. If you plan to make a large purchase online, don’t charge it on your debit card.  Keep in mind that debit cards offer only a limited protection so you may not get much help in case there is a problem with your purchase.  Instead, use a credit card that offers a Fraud Liability Protection so you can have the option to dispute charges should you need to.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

For a long time, credit cards have overshadowed debit cards but now, consumers are starting to appreciate the value of debit plastic cards.  In fact, you can find debit cards that offer different reward programs which certainly add up to their popularity.  And as consumers try to steer clear of bad credit, the use of debit cards seems to be favoured today, more than ever.

Let’s take a closer look at the reward programs associated with debit cards:

Debit Cards with Cash Back Rewards

Just as cash back credit cards are a popular choice among consumers, debit cards with cash back rewards are an obvious favorite as well.  Usually, debit card issuers give 1% cash back or 1 point for every dollar worth of purchase.

For example, the debit cash by PerkStreet Financial offers1% Cash Back Rewards on Non PIN-Based Transactions. Pay Pal Debit Card also offers 1% cash back for every purchase as long as the cardholder is enrolled in the PayPal Preferred Rewards Program.

Merchant-Affiliated Debit Rewards

Some debit card issuers partner with merchants to offer more exciting rewards.  For instance, Chase has its own version of a cash back debit card called the Real Cash Rewards Debit Card which offers up to 3% cash back, depending on your monthly spending.  Chase debit cardholders can also earn up to 30% cash back on purchases made from more than 600 retailers that are included in the Chase Real Cash Mall.

MasterCard has also introduced the MasterCard Marketplace for both debit and credit cardholders.  The MasterCard Marketplace features different retailers that sell various products and services.  Mastercard debit cardholders are entitled to cash back bonuses by purchasing from affiliate merchants online.

Visa Debit card offers 3 cash back points for every dollar spent on partner retailers such as Staples, Expedia, BestBuy, Linens n’ Things and up to 20 cash back points on purchases made at selected stores like 1-800-Flowers, SmartBargains, and more.

Special Program Debit Reward Cards

Then there are debit cards that offer special reward programs that appeal to specific niches.  For instance, Citizens Bank has come up with the Green$ense cashback debit card which are sure to attract environmentalists. This debit card offers to give 10 cents for every paperless payment charged to the card.  Green$ense cardholders can earn up $120 each year, plus a monthly newsletter that includes tips for green living.

Choosing Your Cash Back Reward Debit Card

We have discussed the three major types of reward programs offered on debit cards.  Before applying for a debit card, make sure that the reward program matches with your personal lifestyle.  Understand the specific rules of the reward system.  More importantly, check the fees involved in using your chosen debit card to avoid unexpected charges.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

There is an observed trend among cardholders of switching to the use of prepaid debit cards and pre paid credit cards. What could be the reason behind this switch? And what exactly could this card provide? We will discuss the answers to these questions and other related information regarding prepaid cards.

Pre paid credit cards, and their debit card counterparts, revolutionize the way people spend. Through these cards, people are able to spend only within their means. How is that possible? Well, by using these cards, cardholders are required to load cash first onto a prepaid debit card or credit card before they could use their prepaid cards for purchases, cash withdrawals and even reservations for hotel accommodations and car rental services. Once the fund loaded onto the prepaid card runs low, all future purchases and payments will be declined, and this will prompt the cardholder to load cash again to his credit or debit card.

Though some prepaid cards are known to have fees and charges, a lot of people recognize the value of switching to these cards. As we all know, a credit card holder is prone to overspending because of impulse buying and lavish shopping sprees. In the end this individual may find himself with lots of debts, which, most of the time, is very difficult to pay completely. By using a prepaid debit card, an individual could easily control and monitor his expenses on purchases and ensure that he does not fall into a debt trap.

A lot of parents are also acknowledging the importance of these prepaid cards. A growing number of parents apply for these cards and provide their teen agers prepaid debit or credit cards. In so doing, these parents are able to provide their growing kids access to plastic cards while also retaining control over the way their children spend the funds loaded onto the prepaid cards they hold on to.

But is it difficult to apply for these prepaid cards?

Well, applying for these cards is very much similar to the method used in opening bank accounts. You need to provide important documents like proof of residence, contact information and identification cards. Then you could choose any of the three platforms for applying for these prepaid cards. You could choose to apply over the phone, online or through a personal application. After applying, you will be asked to wait for the prepaid cards to arrive via mail, and once activated and loaded with cash; you could soon enjoy the benefits of your own prepaid debit or credit card.

So we hope that you have gained much insights and information regarding prepaid debit cards and prepaid credit cards.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

A lot of people have the tendency to get and buy products on impulse. Eventually, they find themselves regretting their sudden decision to buy or get the products offered to them. This also applies in choosing and getting prepaid debit cards and pre paid credit cards. If you want to get the right prepaid card suitable to your personal needs, you must be rational, inquisitive and diligent enough to shop around for the different prepaid card programs. But, how could you choose the right prepaid cards? To help you in this quest, this article will be providing tips in choosing and getting the right prepaid credit cards or debit cards.

Tip 1: Avoid the Costliest and Most Frequently Incurred fees. – This requires an individual to look closely at the fees and common charges imposed on prepaid debit cards. To get the right prepaid card, you need to look for cards which do not require transaction fees, charge less than $5 for maintenance fees, and charge at most $5 for loading fees. By taking these fees and charges into consideration, for sure you will be able to find a prepaid debit card or credit card that will not devoid you of much of your savings and income.

Tip 2: Look for a prepaid card program that provides an online feature of managing your credit and purchases. – A lot of credit companies and banks provide online platforms for checking and monitoring your prepaid cards. So, make sure that the card you are applying for provides this special feature so that you could be assured of knowing how you spend the money you load onto your prepaid cards and determine the status of your prepaid account.

Tip 3: Make sure that the prepaid debit card you will get is accepted everywhere. -  Make certain that the prepaid card that you select is backed by major card networks such as Visa and Mastercard. It is important so that you could be assured of having your prepaid card accepted in most Automated Teller Machines (ATM’s) and commercials stores and shops worldwide.

Use these helpful tips and soon you will be able to locate the right prepaid card that will suit your needs and provide you much convenience. By then you will realize the significance of being diligent, inquisitive and rational enough in choosing for yourself the right prepaid credit card or prepaid debit card.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!