What Is a Prepaid Card?
Prepaid cards are commonly referred to as prepaid credit cards, but they function more like debit cards than credit cards. Credit cards extend lines of credit to cardholders, whereas a prepaid card only uses money loaded on the card.
Prepaid debit cards are an excellent alternative if you do not have a checking account or credit card due to ChexSystems or bad credit. They are safer than carrying cash, and you can use them to make purchases anywhere Visa or MasterCard is accepted. You can also use prepaid cards for online payments, and you can withdraw your funds at ATMs.
With a prepaid card, you simply deposit money into your prepaid card account and then draw on those funds as you use the card. As the funds become depleted, you load more money onto your card to continue using it. At any time, it's easy to find out how much money is left on your card, because most cards come with online account access and/or SMS text messaging. So you simply go online to see where your account balance stands at the moment, or have your balance sent by text message to your text-enabled cell phone. Many of the cards featured on Prepaid101 also offer extra features such as direct deposit and bill pay that will save you money on check cashing fees and money orders.
Is a prepaid card right for you?
If you've been using expensive check cashing services or you have credit difficulties, or you have trouble controlling your spending, a prepaid debit card may be very useful to you. Prepaid debit cards offer many advantages. There is no debt involved and so there are never any finance charges. A prepaid card encourages you to budget and spend carefully, while offering you the convenience of a credit card. Most cards also offer an abundance of services similar to those offered by banks, such as online bill payment, loans, credit building services, and savings accounts. Prepaid101 was designed to help you find the right card for you. Find the best card for me.
Here are some of the basics that apply to most prepaid card accounts:
Can anyone obtain a prepaid card?
If, for some reason, you are unable to obtain a credit card or a checking account, a prepaid card may be ideal for you. There is no credit check involved, no ChexSystems verification, and you don't have to have a bank account. Even if you have not had past credit issues, but would prefer to avoid over-spending and finance changes, a prepaid card may be the answer for you as well.
Federal law requires financial institutions to verify your identity. You will be required, in most cases, to supply your date of birth and social security number. In addition, other identifying information such as your driver’s license may be required. To apply for a prepaid card, select Apply Now button for the card of your choice.
Adding money to your prepaid card
There are two easy ways to load more funds onto your card. One is by making direct deposits from your paycheck or benefits check. This is the best option because it is free and once you set it up it becomes automatic. Many employers and benefit providers provide this service so you may wish to ask if yours does. You will be able to choose how much of your check you wish to deposit regularly, and you will be able to change that amount when you want to.
The second way to add more money onto 
your card is by going to many of the large chain retail stores (i.e., Walmart, Safeway, etc.) where you probably already shop. Money service providers such as Western Union, Money Gram, and Green Dot are offered in many of these stores, so they are very convenient locations to add funds to your prepaid card. Depending on the retail location you go to, the provider usually charges a fee. However, look for special promotions where the fees are often reduced or waived.
Finally, some prepaid card accounts permit you to purchase additional cards for family members so you can transfer available funds from one card to another for free. This is a convenient and inexpensive way to send money to a child in college or a family member that lives far away.
To compare prepaid cards side by side, click Prepaid101 and select the cards you’d like to compare.
