4 Tips to obtaining a prepaid debit card
Whatever your reasons are for getting a prepaid debit card, it’s always a wise decision that you are fully informed with how it works before getting one. A prepaid debit card is a great alternative for those who don’t have a checking account or a credit card. It works almost like the same way with a credit card and a checking account, but the difference is that money is loaded into the prepaid debit card and you can only spend the amount loaded on your card. It’s a great way to allocate a budget for spending as it is not directly connected to your bank. It can help improve your finances. If you are interested in getting one, here are four tips to obtaining a prepaid debit card.
Only apply for a prepaid debit card from a trusted provider.
You need to make sure that you are applying for a prepaid debit card from a trusted provider. A lot of banks around the world now provide this option so you can have a separate prepaid account from your savings account. You can also get one from this website. Just like you would when doing any legal transactions, you will have to make sure that you are getting your prepaid debit card from a trusted provider to avoid any problems in the future.
Always read the fine print.
There’s a reason why you are required to read those terms and conditions before you sign up. Some prepaid debit card charges a monthly or annual fee and it could easily eat away all the balance in your account if you are not careful. Moreover, there may be renewal fees annually or a fee if you withdraw cash from an ATM. Depending on where you are getting your prepaid debit card, you need to make sure that you know exactly what fees you will be facing once you use it. So before signing up, always read the fine print.
Monitor your card activity.
Unlike credit or debit cards, prepaid debit cards do not usually automatically issue statements so you may not be able to easily track the cash in and out of your account. So in order to keep track of your purchases as well as your balance, you will need to make sure you are registered to the provider or issuer’s website so you can check the activity online. You need to be vigilant in this matter so you will be able to control your finances.
Only get one if you really need it.
Considering how easy it is to get a prepaid debit card today, one can be easily tempted to get one. It is totally up to you if you want to get multiple prepaid debit cards but if you want to improve your budgeting habits and finances in general, it would be best to only get it if you really need it. Moreover, this will also prevent you from losing cards and may cause problems with your privacy.