It wouldn't be out of the question to use a prepaid debit card if you want to help your financial standing in the long term. This type of card is easy to carry around and it seems like it can be used in various stores across the board. Even still, if you want to make the most out of this card, there are a couple of things that you should watch out for. As Bob Jain, as well as other names in finance, will tell you, these are 3 of the cons associated with prepaid debit options.
According to financial names the likes of Jain, it is important to note that these cards have their limits to keep in mind. Many stores will be able to accept them, yes, but the problem is that you are limited to the amount of money loaded on the card to begin with. Adding more money can be done through a process but, at that point, it's easier to just go with a standard debit card. Bob Jain can tell you that this particular option may be a bit more restrictive than you would like.
For those who are looking to build upon their credit history, you may be better off not going with prepaid debit. There are many reasons but the most prominent, if you ask me, is the fact that cards like these are not meant to be credit-building options. They serve as cash in card form, for lack of better terms, so it's not like they are not going to influence your credit score positively or negatively. If you are focused on the former, though, there are other options to consider.
It's also important to note that, depending on the card you want to use, there might be hidden fees attached to it. For example, if you want to add a few hundred dollars to your card, chances are that you will have to pay what is called a loading fee. This doesn't even cover the potential interest rates that will probably have to be accounted for as well. For those who are concerned about having to pay tremendous fees, you might be better off consulting your bank about this.
These tips shouldn't totally deter you from the idea of prepaid debit options, since there are benefits to consider. They are easy to carry around, especially when compared to large amounts of cash, and the fact that they can be used at a number of locations should not go unrecognized. In my view, though, the ideas listed above serve as precautions before you decide to commit to this idea. If these aren't deal-breakers for you, they may be some of the most effective options available.
According to financial names the likes of Jain, it is important to note that these cards have their limits to keep in mind. Many stores will be able to accept them, yes, but the problem is that you are limited to the amount of money loaded on the card to begin with. Adding more money can be done through a process but, at that point, it's easier to just go with a standard debit card. Bob Jain can tell you that this particular option may be a bit more restrictive than you would like.
For those who are looking to build upon their credit history, you may be better off not going with prepaid debit. There are many reasons but the most prominent, if you ask me, is the fact that cards like these are not meant to be credit-building options. They serve as cash in card form, for lack of better terms, so it's not like they are not going to influence your credit score positively or negatively. If you are focused on the former, though, there are other options to consider.
It's also important to note that, depending on the card you want to use, there might be hidden fees attached to it. For example, if you want to add a few hundred dollars to your card, chances are that you will have to pay what is called a loading fee. This doesn't even cover the potential interest rates that will probably have to be accounted for as well. For those who are concerned about having to pay tremendous fees, you might be better off consulting your bank about this.
These tips shouldn't totally deter you from the idea of prepaid debit options, since there are benefits to consider. They are easy to carry around, especially when compared to large amounts of cash, and the fact that they can be used at a number of locations should not go unrecognized. In my view, though, the ideas listed above serve as precautions before you decide to commit to this idea. If these aren't deal-breakers for you, they may be some of the most effective options available.
About the Author:
If you would care for extra information about the services of Bob Jain, please contact Bobby Jain today.
No comments:
Post a Comment