Prepaid debit cards are designed to give you access to the credit you need by guaranteeing payment to the credit card issuer. When you open a pre-paid debit card account, you’re required to make a deposit into a special escrow account to be used by your credit card company. Compare the debit cards below to see which is the best for your needs and then simply apply online.

Prepaid Debit Cards

Bouncing back from financial problems can be particularly difficult today; prepaid debit cards can be an effective way of shortening the journey to credit-worthiness. All prepaid debit cards aren’t the same. Here’s what they are, how they work, and some of the fees associated with them.

How Do Pre-Paid Debit cards Work?
Prepaid debit cards work just like a regular credit card. You make purchases, pay for airline tickets or buy anything else that you might buy with a regular credit card. The only difference is that your deposit gives your credit card issuer some assurances that you will live up to your end of the bargain. If you fail to make at least your minimum monthly payment and you default on your obligation, your credit card issuer can close your account and keep the money you deposited to open your account.

What Fees Are Associated With PrePaid Debit cards?
There are multiple fees associated with having prepaid debit cards, although some issuers charge more fees than others. The cost of carrying these cards can seem high, but the fees are essentially your way of “buying” a chance for a credit card issuer to take a risk by issuing you a credit card that they probably wouldn’t otherwise absent a security deposit and certain fees:

• Annual Fee
• Card Acceptance Fee
• Monthly Membership or Maintenance Dee
• Interest Charges
• Same Day Electronic Payment (depends on credit card company)
• Deposit Fee (fee charged each time you deposit funds into your security account, charged by some companies
• Other Fees and Charges (Varies by Company)

How Can a Pre-Paid Debit Card Help Me?
If you have badly bruised or even broken credit, a prepaid debit card can be the pathway back to credit worthiness. If you use your card regularly, don’t go over your credit limit, pay your bill on time and keep your balance at any given time under 80% of your credit limit, your prepaid debit card can help you to rebuild your credit. An important consideration, however, is that you must pay all of your other credit obligations on-time – or your best efforts to repair your credit will be worthless.

Bad credit doesn’t have to be a financial death sentence. Prepaid debit cards can be the lifeline that helps to restore your financial life to good health. Use prepaid debit cards as a wise investment into your financial future.