Debit Bank Cards Versus Prepaid Cards

As credit is harder to get, debit cards and prepaid visas become more popular. If you don’t know what each card is, let’s take a moment to describe them.

Debit Card – This is an ATM card that can be used like a visa or a direct purchase from your checking account. You will be asked at the time of purchase if you want to use the visa or the debit function. The visa function will require a signature, the transaction is processed through the visa system, but the money comes from your checking. The debit process is straight forward; it comes right out of your checking account immediately.

Prepaid Visas – This card is really a visa credit card without the credit line. You’ve to deposit cash into an account which is connected to your prepaid visa card. You make purchases anywhere a merchant accepts visa, when your money runs out you require to reload the account to keep utilizing the credit card.

Advantages of a Debit Credit card

In a world of plastic money you have to know the rules, so let’s look at a few advantages of this type of card:

1. Most locations accept each visa and debit, but there are still some locations that do not. Having the flexibility of both makes it convenient to use.

2. You don’t have to carry cash.

3. You qualify no matter what your credit score score is.

4. You can only spend what you’ve in your account.

5. Theft/Stolen protection plan.

6. Records – You’ve a record of every purchase. This is handy if you’re budgeting and need records for tax purposes.

People have gotten into deep financial troubles using credit cards, using a debit card is one way of controlling your finances. You only spend what you have.

Prepaid Visas – Uses and Benefits

These are also know as secured credit cards. As mentioned above, the convenience of not having to carry cash is one advantage. A person with bad credit can get a card like this. There is no interest or late fees due to the fact you can only charge what you have deposited.

If you do have bad credit, these types of cards are used to rebuild your credit. There are lenders that will issue these visas to customers rebuilding credit, then in a year or so the lender will issue a low limit unsecured card.

One other factor is these cards make fantastic gifts. For occasions, for children, they could be compared to gift credit card, but much much more flexible.


These are good, safe products to use. These are tools to help you spend what you can afford, give them a try.

If you enjoyed this debit article, you should take a look at these other financial posts that I have written.

Related Blogs

Leave a Reply