A prepaid debit card is linked to an account funded by your own money. When the card is used, the cost of a purchase is debited from the account. Rather than using the cash in the account to pay for the items directly, the debit card is used to improve credit rating.
This is a convenient alternative to carrying cash.
Even children can be provided with a prepaid debit card. Parents can load the card with the amount of money they deem suitable. The child can then use the card to make purchases up to that amount. By using this card, there are no worries of children amassing huge credit card bills that their parents must pay.
This debit card is an easy way to teach children financial responsibility.
Unlike a regular credit card, this prepaid card does not have transaction or interest charges. Due to credit cards and loans debt has become a way of life for many people. If not managed properly, this debt can lead to huge financial problems.
Credit cards also make it easy to get cash advances, which can sink people further into debt.
People take control of their spending when they use a prepaid debit card. They determine the account balance, which then dictates how much money can be spent using the card. Since the money comes directly out of the account, there are no worries of late or missed payments.
The charges are paid in full each month.
This card is not difficult for most people to get because the application process does not involve a credit check. This means that even a person with bad credit can obtain a card. People can use it to make purchases in stores or online or to pay their bills.
Through this smart financing, they can help repair their credit.