Reloadable gift cards are becoming increasingly popular as an alternative to traditional credit cards and debit cards. What's nice about these is that you don't have to set up an account with the bank. Instead, you use your reloadable gift card(s) like any other credit card. This article will discuss the advantages and disadvantages of these types of prepaid cards.
First of all, what is a no fee prepaid debit card? Basically, it is a credit card without the requirement to maintain a checking account. These cards are usually issued by banks, to provide their customers with an alternative to traditional debit cards. A lot of people prefer to use these instead of traditional debit cards because they usually offer a 0% interest rate on purchases for a certain period of time. The best thing about these cards is that if you want to use the card abroad, you don't need to open a local bank account.
Many people wonder why these credit cards usually offer such low interest rates. Basically, this is because you're spending your money on goods or services, so you can get a lower interest rate on those purchases. Keep in mind, though, that you're still getting charged regular interest on any money you withdraw from your account. So, do be careful with how much you spend!
Another advantage to these prepaid cards is that many companies also make a direct deposit to your account. Now, you might wonder why they do this. Basically, these companies use your direct deposit information to generate payroll taxes. When you have this type of direct deposit, you automatically receive a paycheck. This makes it easier for you to put money away in a savings or checking account. After all, you can only deposit your paycheck when you have access to a bank in your area.
It is best to go with a bank that has been in business for a while. That way, you can be assured of their security features and dependability. A plus factor however, is the fact that most of these banks also allow you to make direct deposits to your PayPal prepaid Mastercard. This is especially beneficial if you regularly make purchases online.
It can also be advantageous to you if you travel a lot since most of these cards enable you to send money to your loved ones overseas. In fact, many banks allow you to set up direct deposit to help you take care of bills while you are away. In this manner, you do not need to wait to have money transferred to your checking account. All you need is your gift cards, which you can either send over the phone or online. Plus, you also eliminate the need to use your credit card for overseas transactions since they will automatically convert to cash once you sign up for a bank account.
Moreover, you can use them to help you save some money. Most ATM machines only give out cash when you swipe your debit card. This means that you have to put up large amounts of cash to prevent it from getting drained if ever there is an emergency. As you may know, ATM fees are quite expensive. In addition to that, you need to carry your debit card wherever you go since you cannot take it with you in most establishments.
Reloadable gift cards with no fees can help you save both money and time. If you travel often, you can have all the convenience of these cards without incurring huge expenses. You can either use direct deposit or a prepaid debit card. If you prefer to stay at home, you can always make use of your savings and invest in gold, stocks, bonds, or mutual funds. With both options, you will be able to enjoy higher returns without much effort.