Five Major Advantages of Prepaid Debit Cards

Today, more and more consumers prefer to use prepaid debit cards in paying bills and purchasing rather than use credit cards or checks. Prepaid debit cards may look the same as plastic credit cards but there is some differences to their features and functions. In this article, let’s take a look at the five major advantages of using prepaid debit cards for payment.

Accepted at Many Locations
Prepaid debit cards are accepted by many retailers, shops and establishments worldwide. If your debit card bears the Master Card, Visa, or American Express logo, you can be sure that it will be recognized almost everywhere.

They can be used when purchasing from the shop or ordering online. What’s great about shopping with a debit card is that there is no need to carry cash in your wallet. It is also quicker and more convenient when paying at the cashier.

Not Linked to Your Bank Account
A prepaid debit card account does not need to be linked to your savings account so it is a safer way to shop both online and offline. Many consumers are aware of the fact that is real threat. When you purchase online with a debit card, there is no need to reveal your personal bank information.

Get a Prepaid Debit Card Even with Bad credit
When you apply for a regular credit card, most issuers require a good or excellent credit rating in order to get approved. If you have bad credit, you may need to get a secured credit card but this would require a security cash deposit.

On the other hand, anyone can easily acquire a prepaid debit card regardless of personal credit standing. Whether you have bad credit or no credit history, you can easily obtain a debit card without having to maintain a balance.

Limit Your Spending
Some people may view it as a disadvantage but not having a credit line can actually be a positive thing especially for people who are having problem putting their spending in control. A prepaid debit cardholder can use it for purchasing as long as there is an available balance in the account. When the funds run out however, the cardholder must make a new deposit to continue using the debit card for payment.

[Article: Prepaid Credit Card Tips for the Smart User]

Establish or Rebuild Credit
Yes, there are issuers of prepaid debit cards that provide credit reporting to the major credit bureaus so that they can now be used for establishing credit history or for rebuilding bad credit. Just make sure that your chosen debit card will report your payments to Experian, Equifax or TransUnion.

About the AuthorTara Tiemann is a credit analyst for 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!

About Liz Roberts

Liz Roberts is the new credit specialist for Go-Prepaid. If you are on a budget, we can get you discounted cell phone service from Sprint, Verizon and T-Mobile! NO CREDIT CHECK ! Using a prepaid services can save you a TON of money! Follow our blog to find out how!

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