The pre-paid debit card was an innovation introduced by credit card companies in the 1990s to facilitate people in the US who could not qualify to hold a credit card. A pre-paid debit card is just a secured credit card which offered an expenditure limit to the extent of cash that was held in deposit by the credit card company.
As a rule to begin with a pre-paid debit card holder is given a credit limit equivalent to the sum help as collateral. Once a solid credit history is established many card companies extend the credit limit to as much as 200% of the amount held in deposit. Furthermore, as the money is utilized further deposits can be made online, at ATMs, or over the phone.
Among the several advantages of pre-paid cards are the following:
1. Pre-paid debit cards have a wide merchant acceptance and so can be safely carried world wide.
2. Since you are charging transactions to money in deposit you will not have any worries about unpaid bills, debt, or bad credit scores.
3. A pre-paid debit card is issued to everyone and there is no credit check involved. The only criterion is that you need to be over 18 years old.
4. Using a pre-paid card to meet expenses means you save money that the bank charges you when you issue checks.
5. The balance on a pre-paid card can be topped up or enhanced from anywhere in the world. You can do the needful from an ATM, online, or even using a phone.
6. Using a pre-paid debit card means you never have to worry about ruining your credit report or rating. When you use the card you are not using an advance offered by the credit card company but the money you have deposited with them.
7. A pre-paid debit card can be safely used for recharging funds on your mobile phone, to buy groceries or petrol, on the net to pay for purchases, for making travel arrangements including tickets and hotel reservations, to transfer funds to family members or friends, and to withdraw cash from ATMs worldwide.
8. Pre-paid debit cards are ideal for children and employees as it limits the amounts they spend and you will receive detailed statements for the card use.
9. It is a convenience available for people who don’t have a bank account.
10. A pre-paid debit card can help rebuild your credit.
11. Pre-paid debit cards are risk free and even if they are stolen they will not run up a bill as they are protected by a pin number.
12. A pre-paid debit card can be carried safely all over the world even places where credit card theft is common. The pre-paid debit card gives you peace of mind while traveling.
The pre-paid debit card is a credit card that carries no debt and does not cause tensions. It enables you to get all the advantages of carrying a credit card and yet ensures that you live within your means. By using a pre-paid debit card you will never have to deal with interest payments, living beyond your means, or filing for bankruptcy.
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