Universal Prepaid Debit Cards

Universal prepaid debit cards are a very attractive alternative for people with few other credit options. These accounts allow individuals to deposit an amount of money, usually through check or payroll deposit, and spend the money electronically through a debit card. Consumers can also attach a card to an existing savings account and make withdrawals without having to set up separate accounts. With the electronic nature of our society, people with poor credit who are unable to qualify for other sources of credit feel very limited. Universal prepaid debit cards give them the freedom to make purchases anywhere at any time without carrying around too much cash.

Since universal prepaid debit cards carry a Visa insignia on them, people can use them any place that accepts Visa or MasterCard credit cards. Cash can with be withdrawn any time through ATMs. Consumers can purchase gas, clothing, groceries, or any other product or service in stores all over the world and even online. As long as money is still in the account, it can be used for any purpose 24 hours a day, 7 days a week. Many people prefer to give them as gifts over gift certificates, which are often linked to a specific provider. Businesses who haven't established credit yet, can use them as an effective way to pay vendors or employees. Parents also prefer the prepaid option for teenage children or college student over providing a credit card that could easily get out of hand. . By using universal prepaid debit cards, they can deposit only what they want the student to use and therefore monitor spending habits. The Bible tells us to teach our children healthy habits. "Train up a child in the way he should go: and when he is old, he will not depart from it." (Proverbs 22:6) This is includes how manage money effectively.

For many adult consumers who have been plagued with bad credit, overwhelming debt or bankruptcy, pre-paid credit can actual help them manage their own finances and budget more effectively. Millions of people in the United States don't keep bank accounts or don't have the credit history to be approved for standard credit cards. Carrying large amounts of money is dangerous. Electronic cards are a much safer alternative. Universal prepaid debit cards are a convenient and easy way for these individuals to transfer funds for products or services. Card providers don't usually check financial history or employment, so opening an account is easy for individuals no matter what their credit score. Plus, those with bad credit can request prepaid debit companies to report spending habits to the three major credit bureaus, and therefore increase financial credit scores. This practice enables these individuals to built credit worthiness and eligibility for other credit options in the future.

This unique financial option can also be very affordable. Providers of universal prepaid debit cards generally don't charge interest. They simply take money and give it back to the consumer in a form he or she can readily use. There is virtually no risk involved. Since consumers can only spend what they have in the account, there is no risk of overspending and incurring costly overdrafts fees. However, providers do charge fees for various services. These fees are billed through the consumer's prepaid card and can be costly. It is important to shop around and compare what fees different providers charge. Some charge a simple monthly service fee while others charge for each debit or deposit transaction. Other charges can include an activation fee or a replacement fee if the card is lost. Some allow consumers to reload the card once the funds have been completed while others require individuals to reapply. Most universal prepaid debit card providers do not report transactions to credit bureaus unless requested and, of course, another monthly fee is paid. But they do offer anonymity and convenience for those who need it and an account to schedule a direct deposit from an employer.

Critics argue that universal prepaid debit cards are too easy to get. Careless providers who didn't check proper individual identification have approved illegal immigrants, who use prepaid cards as a form of legal I.D. This option is very appealing to immigrants after being at the mercy of once popular check cashing companies that are very pricy and inconvenient. Financial advisors also warn consumers not to be sucked in by radio or television advertisements that offer flashy attractive cards carrying higher fees. Sometimes, smaller banks and providers who are trying to build up their deposit assets will offer the best deals on prepaid debit cards. Searching the Internet is a great place for consumers to start comparing fees and plans.

Universal prepaid debit cards can offer consumers greater freedom than other credit options at a much lower rate. By providing the funds up front, individuals can better manage their finances and build a more appealing credit file that will be beneficial in the future. It can also provide a vehicle to purchase items otherwise unavailable to those who are unable to qualify for credit lines or cards through a traditional bank or financial institution. As in any form of financial management, consumers must use wisdom in finding the best provider to partner with. Some will prey on individuals desperate for financial alternatives, charging outrageous fees for convenience and simplicity. But consumers who find a legitimate prepaid provider with manageable fees, have much great flexibility with their finances.

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