![prepaid debit credit card prepaid debit credit card](https://a57.foxnews.com/static.foxbusiness.com/foxbusiness.com/content/uploads/2017/11/931/506/3c70063b-Debit-Credit-Cards-Stacked-Finance.jpg)
Also, a secured credit card can help you build credit, which won’t happen with a debit card. You never actually use the deposit money, and you can get the deposit back when you close the account or potentially even sooner. You can use that credit line, pay it off, and continue to use it over and over again. By contrast, a secured credit card requires that you make an upfront deposit, which becomes your credit line. With a prepaid debit card, you simply use the money you load onto your card. Prepaid debit cards are sometimes compared to secured credit cards, but the two are very different. While some prepaid cards offer overdraft protection, that’s not as universal as with traditional bank accounts. Also, you can only use the funds that you’ve loaded onto the card. The difference between a prepaid debit card and a regular debit card is that the former isn’t tied to a checking account with a bank or credit union. Prepaid cards are typically issued on the same payment networks as regular debit and credit cards, including Visa, Mastercard, American Express, and Discover. As with a traditional debit card, you can use a prepaid card to make purchases online and in-person wherever the card is accepted. If you’re looking for a prepaid debit card to help manage your money, here are our top options to consider.Ī prepaid debit card is a means of payment.
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Prepaid cards can also be useful in combination with the other two as a budgeting tool-after all, you can only spend what’s loaded onto the card. You might also consider one if you’re worried about going into debt with a credit card. Prepaid debit cards can be an excellent choice if you’ve been unable to get a regular bank account with a conventional debit card. But the market is growing, with Allied Marketing Research estimating a compound annual growth rate of 18.2% from 2021 through 2030. The prepaid debit card market is fragmented, meaning no single company carries enough market share to dominate it. They let you spend up to the amount of money you’ve loaded onto your card and can be reloaded repeatedly. Prepaid debit cards are an alternative to credit cards and traditional debit cards for purchases. Read our advertiser disclosure for more info. We may receive compensation if you visit partners we recommend. We recommend the best products through an independent review process, and advertisers do not influence our picks.