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Seven Important Life Lessons Prepaid Debit Taught Us | prepaid debit

A prepaid debit card is quite similar to a gift card for money. Once you acquire one or get one, it's preloaded with a set amount of money. However, unlike a gift card, you never have to use all of the money loaded on the card.

Unlike credit cards, prepaid debit cards are not backed by a credit company. So, if you don't pay the bill in full at the end of the month, you won't be charged fees. However, most banks don't provide these cards because they don't make any money on them. Instead, they simply tie the fees into the actual balance of the account.

With a pay-as-you-go prepaid debit card, the bank issues a regular card with a certain amount of money loaded on it. Whenever that amount is used, the amount is deducted from the bank account. So, if you only spend $10 dollars per week, you would only pay the bank ten dollars. If you want to add an extra number of dollars, all you do is add more money onto the prepaid debit card.

This makes the pay-as-you-go prepaid card a great tool for travelers. You can load your card with enough money so that you have instant access to some cash, but you don't have to carry around large amounts of cash when you travel. Another advantage to these types of credit cards is that you never have to reload them.

Most people find the added convenience of a pay-as-you-go prepaid debit card to be worth the fees. Even if you don't travel that much, you may still want to check out the fee structure of the cards. Some cards charge a flat fee monthly fees that cover everything – even ATM fees. Other cards charge less per transaction or annual fees for any amount that is withdrawn from your account.

There are two different types of fees that most of the credit card companies offer. The first type of fee is a service charge that is assessed each time a transaction is processed. This is charged regardless of the total amount withdrawn from the account. Another fee is a direct deposit fee that is charged for making a monthly deposit into your account. These fees are usually fairly minimal and only cost you about two or three dollars per month. Many times you can get a better deal by opting to have your direct deposit made automatically rather than paying for it manually.

Prepaid debit cards can actually help build your credit history. When you use them, they act just like a regular credit card and are reported to the major credit bureaus such as Experian, Equifax, and TransUnion. When used in conjunction with a secured credit card that contains an equivalent amount of money, you can build your credit history just like you would with a regular card. You would be able to transfer any balances to your prepaid credit cards. Because you are not spending money, you will have a poor credit history.

However, prepaid debit cards give you the security of not having your money tied up in any one place. There is no need to worry about being robbed while you are away from your place of business or home. Since there is not a limit on how much you spend or if you will spend any, there is also no need to worry about accidentally spending more than you have. Most companies will issue a chargeback to those who do exceed their spending limits and will charge you a higher fee when you attempt to make another transaction while carrying your chargeback. This means that you will get the added protection of having your money tied up with no strings attached and fewer protections from theft and fraud.

Mastercard Prepaid Just Load and Pay Safer than Cash – prepaid debit | prepaid debit

Prepaid Debit Cards Credit Cards Mastercard – prepaid debit | prepaid debit

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