Prepaid Debit Card - Very Convenient & A Good way To Build Credit

A prepaid debit card is a great investment because it can help with building a good credit rating and in managing spending.

With a prepaid debit card, the cardholder will load funds onto the card in a variety of different ways. Most prepaid debit cards allow you to load funds onto the card by direct deposit, online bank transfers, wire transfer and Paypal.

Prepaid debit cards hold Visa or MasterCard logos and can be used the same as a regular debit cards; you can use a prepaid debit card for purchases and at ATMs.

Some issuers of prepaid debit cards have special programs that can let someone with bad or no credit to build a good credit history. Generally, you will have to pay a monthly fee to be apart of these programs.

When you make a monthly payment for enlistment in these credit-building programs, the card issuer will report your payments to the major credit bureaus. If you have bad or no credit, this is perfect because you do not have to worry about paying a credit card balance that will accumulate interest. This feature is called Credit Builder.

List of prepaid debit cards with the Credit Builder feature:

Eufora Prepaid Mastercard®
Vue Visa® Card
VIP Visa® Card
The Sterling VIP Prepaid Visa® Debit Card,
AccountNow™ Vantage Debit MasterCard®
Credit Builder Card

These prepaid debit cards all have different fees but can be used the same as a regular debit card. Although the Credit Builder card is a prepaid debit card, it does not carry a Visa or Mastercard logo. Therefore, the credit builder card cannot be used in many locations.

Prepaid card issuers general make income in a variety of ways. Prepaid debit card issuers will charge different fees for the privilege of using the different features associated with the prepaid card. With prepaid credit cards you typically have to pay an annual fee, loading fees, and enrollment fees for special programs.

The annual fee is for the general use of the card and its features and is basically a membership fee. Some prepaid debit cards offer the same features as regular debit and credit cards like reward points and travel assurance. Loading fees are generally charged at different rates depending on how you load funds to your prepaid debit card.

Some prepaid debit cards will charge a small fee ($1) for loading funds by means of Paypal, bank transfer or wire transfer. In addition, some prepaid debit card issuers will have free loading options like direct deposit.

Loading fees will differ depending on the prepaid card issuer. Enrollment fees in special programs are another fee prepaid cardholders will pay.

To enroll in special programs, like Credit Builder, the prepaid cardholder will have to pay monthly fees. These monthly fees are used to build the cardholder’s credit by reporting the monthly payment to major credit bureaus. Fees charged by prepaid card issuers are taken from the funds already loaded to the prepaid debit card.

Prepaid debit cards are a useful tool for many people. Here are several reasons why you should get a prepaid debit card:

Building credit. Some prepaid debit cards allow the cardholder to enroll in programs like Credit Builder. Credit builder is a program that allows a person with bad or no credit to build a good credit rating. Monthly payments are taken from the funds on the prepaid debit card for this service. The payments are then reported to major credit bureaus, which will help increase the cardholder’s credit score.
Debt reduction. A prepaid debit card allow you to spend money you already have, as opposed to spending borrowed money from a credit card. Credit cards encourage many people to spend borrowed money that will then accumulate interest. Instead of spending money you already have, you will be paying back a larger sum of money than you initially borrowed with a credit card.
Money management. Prepaid debit cards help to control your spending habits. With a prepaid debit card, you cannot spend more money than what you have loaded on to the card. Prepaid debit cards are also a great alternative for teenagers. They allow you to give your teen money, while monitoring and managing their own spending.
Easy approval. Prepaid debit cards are easier to apply for than regular credit cards. To get a prepaid debit card you do not need a bank account, employment verification or credit check.
Payment. You can use a prepaid debit card to issue funds to employees or independent contractors. If you have a small business, you can simply load funds to the prepaid debit card as opposed to issuing checks that can get stolen.
Wiring money. You can easily send money to loved ones around the globe with a prepaid debit card. You can load money onto a loved ones prepaid debit card by online bank transfer. Money wired to a prepaid card is available instantly. This is a less expensive alternative to using money wiring services.


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