Prepaid and Debit Cards

A prepaid debit card is a good tool for those starting out, or who have bad credit history and cannot be approved for a credit card. Prepaid cards allow you to make purchases in the same way you would with either an ATM debit card or a regular credit card. The only difference is that instead of the purchase price contributing to a loan balance, it is deducted from money you have previously deposited. A key benefit of a prepaid card is that it helps you track your spending, as purchases appear itemized on your monthly statement. Some also offer online cashflow and bill payment management tools. These skills can help to build an improved credit history, so that in the future you may be approved for a regular credit card.

Make sure to read all the details and features of a prepaid card offer, as many may have fees and rules hidden in the fine print. Overall, prepaid debit cards have very low fees, and you should be able to find one that suits your needs.