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March 24 2015

Prepaid Debit Cards: Are They Just for the Underbanked?

Prepaid atm cards have grown in popularity over the past few years, especially as more and more Americans feel the sting of the recession. In fact, prepaid bank card usage has climbed by 20 % since 2011, and it is expected to increase a lot more by the end of 2013.

Prepaid Visa Card

While people who have traditional bank accounts might have regarded prepaid debit cards as a product restricted to consumers with a bad credit score and the underbanked (people who do not use traditional financial services such as checking accounts), experts agree that prepaid atm cards are ideal for the "already banked" also.

Some of the biggest names in banking are starting to tap this largely untapped segment of people. But what's the point in the event you already have a credit or debit card with your standard bank?

Prepaid Debit Cards Are Valuable for all

One of the many advantages of pre-pay credit cards over debit and bank cards is they don't allow consumers to rack up thousands of dollars of debt. A prepaid card operates just like a bank account. The only funds available are the ones that are already about the card so the likelihood of overspending is virtually eliminated. A prepaid bank card is essentially a consumer's means to fix the growing debt issue in the United States.

More Advantages of Prepaid Debit Cards

Pre-pay credit cards offer several other benefits which go beyond just preventing from falling deeper into debt. Advantages when compared with traditional debit and credit cards include:

� Prepaid cards make it easy and safe to cover purchases in-store and online, pay bills, withdraw cash, and receive direct deposit of wages.

� Protecting you during your the road. Your prepaid bank card isn't linked to your bank account, so you don't have to concern yourself with someone stealing your card and draining your account-or charging 1000s of dollars in your name. Prepaid Debit Cards

� Teaching teens the way to spend responsibly prior to being given access to their particular traditional bank account and credit card. Since a prepaid debit card is not linked to a financial institution account, they can't overspend and learn how to better manage their funds.

� Protecting college students while at school. Prepaid campus cards allow you to directly deposit your college student's funds and have financial aid automatically deposited onto their card. Waters unmanned . your college student from needing to walk around with large sums of cash or manage a large amount of money in a bank account.

More "already banked" consumers continuously switch to prepaid debit cards to avoid excessive debt, curb spending, minimizing the amount of money they lose in fees each month. Since the average consumer pays over Fifteen percent on credit card interest, avoiding using credit cards altogether can significantly reduce their credit burden and even improve their credit score as they pay down debts and spend cash smarter.

Don't be the product, buy the product!