How to Get a Prepaid Debit Card

A prepaid debit card is different from a typical debit card, in that you've already paid for the purchases you will make before you make them. This can be very beneficial for many people, especially those with bad credit. Below, we'll explore how to get a prepaid debit card and which kind is best for your unique needs.

For Building Credit

There are special accounts available for individuals with bad credit who wish to build their credit. These accounts provide you with a debit card that you can use just like a traditional card - to shop online, make purchases at your favorite stores, and more. You place money into the account that is to be used for debit purchases, and you're able to utilize the card in the same way as a typical card. In addition, some of these accounts allow you to take out mini loans, kind of like a payday loan. The payment history is then reported to the three major credit bureaus so that you can build credit.

Prepaid Credit Cards

Another option is to purchase a prepaid credit card. These are available through companies like MasterCard and Visa. You purchase a card for an initial fee, and then you 'load' the card with as much money as you'd like. You can then use your card to make online purchases or in any other way that you'd use a typical credit card. The downside of a prepaid credit card is the initial fee you have to spend to purchase one, and these credit cards are not good for building credit.

2nd Chance Bank Accounts

Individuals can also gain debit cards through 2nd chance bank accounts. These are usually designed for individuals who have bad credit, or a bad history with other banks. The debit card you're given is to be used to withdraw money from the account. However, some of these accounts allow you to use the card as a credit card. Checking with your preferred financial institution is important if you decide to go this route, so you can determine their rules and limitations.

A prepaid debit card is a very beneficial thing to have, for everyday use and for emergencies, especially those that help build credit. Think about why you need the card and this should help you determine which method would be best for your unique situation and needs.

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