The article is devoted to The Pros and Cons of Prepaid Debit Cards. Most people are under the impression that prepaid debit cards are only for people who can’t get credit cards. While this is still the majority of users there are plenty of reasons that people with credit cards may want to consider having one. Like most things there are pros and cons to these types of cards and you should be aware of what they are so that you can make a good choice about them.
The main advantage that prepaid debit cards offer is that they allow you to make payments in places where you would need a credit card without actually requiring you to have one. These days it is hard to get by without a credit card because of all the places that you need to have one. Unfortunately there are lots of people who because of credit issues are not able to one. This used to present a major problem but it is really no longer an issue since everybody can qualify for a prepaid card.
The other big advantage that a prepaid debit card offers is that it doesn’t require you to go into debt. When you use a credit card you are borrowing money which means that you have to pay interest on it. Not only can this get to be very expensive it also puts you at risk of getting into debt trouble. A lot of people have managed to run into issues with credit card debt and when this happens it can be hard to get out from under it. By using a prepaid card instead of a credit card you can avoid this problem.
While there are some major advantages to debit cards there are also some negatives that you need to be aware of. The most important is that they do nothing to help your credit rating. It is important that you build a good credit rating so that you can do things like buy a house; this requires that you prove that you are responsible with debt. Unfortunately when you use a prepaid debit card instead of a credit card you are missing out on one of the best chances you will have to build your credit. Responsible use of a credit card can really help you in this regard.
The other big negative of debit cards is that they can’t be used everywhere that a credit card can be used. While they are great for things like online shopping there will be situations where you still need to have an actual credit card. This is a fairly minor issue most of the time but when one of those situations where you need a credit card does come up you are going to wish you had one. This is why it is a good idea to keep a credit card even if you hardly ever use it.