5 Tips for Choosing a Free Prepaid Debit Card

Many families and individuals are looking for ways to save money and manage their finances. But with everything that seems to be necessary, this can be difficult to do. And this is where a free prepaid debit card can help take the hassle out of money management and keep some change in their pockets.

1. Easy to use

When you first decide to look for a free prepaid debit card, you’ll want to be sure that you understand the way that it works. While some consumers will find that a free prepaid debit card is just like a credit card, you may still want to go over the fine print of the agreement that you will be signing.

Many free prepaid debit card companies are more than willing to discuss the way the system works either by phone or via email. Go to the free prepaid debit card company’s website and read the various informational articles to see where your needs are met and where they might not be.

2. Tracking tools

In order to be able to manage the balance on your free prepaid debit card, you will want to receive some sort of statement or be able to watch transactions as they occur.

Or you might feel that an online tracking service works better for you. A free prepaid debit card that allows you to manage and observe your balance constantly is the best choice for using the free prepaid debit card wisely.

3. Acceptable anywhere

While most free prepaid debit cards are accepted anywhere the Visa or Mastercard logo is taken, you need to be sure that there aren’t other stipulations that you might have to understand.

Try to find a list of retailers that accept the free prepaid debit card that you are looking into before signing up. You wouldn’t want to get a card that you can not use.

4. Moderate fee system

While the point of a free prepaid debit card is to have no fees at all, you must understand that in order for the free prepaid debit card company to make money, there are fees for general use. Check to see if these fees are in line with what you can afford and are willing to pay.

5. FDIC insured

And lastly, be sure to look for a free prepaid debit card that is insured. This feature will make sure that your money stays on the card and is able to be used by you at any time.

A free prepaid debit card can be just the tool that you’ve been looking for to manage your finances, but be sure to follow this advice to ensure that you’ve chosen the card that fits you.

Debit Card vs Credit Card - Pros and Cons

Ever wonder what is "check visa card", "master money card", "check card" etc? They are simply debit card. And what is debit card? In case you do not know it yet, transaction using debit card works almost in the same manner as credit card except there's a huge different:

Let's say you have $1000 checking account in your favorite bank, and then you spend $200 for a sophisticated gadget, jewels, car rental, etc.. You name it. And if you pay:

1. Using credit card, you are purchasing now pay later. You have the goods in your hand and your $1000 intact. It will remain that way until you get your billing statement and pay the debt.

2. Using debit card, by the time the transaction is authorized your $1000 now is $800. This is purchase now pay now scheme but without bringing your cash with you

And if you go to ATM and withdraw cash:

1. Using credit card you'll be charged for a high interest fee.
2. Using debit card there will be no interest fee.

And if you swipe your card:

1. Using credit card you'll be asked for your signature
2. Using debit you'll have to enter your PIN or your signature.

Another major different between debit vs credit card, using debit you are saved from debt. Obviously you can't spend anything if you have noting to spend while using credit although you are running out of cash, as long as you haven't reach your credit limit you still can shop something. You just have to worry when the next financial month comes and you get your billing statement.

At this point, does debit card sound more convenient? Maybe, but you may interest to know that against fraud debit card has a higher risk. Credit card has what it called "credit limit", maximum amount you can spend using your credit card. Say your credit limit is $10,000 then if your card is fraud the thief won't be able to steal more than $10,000.

But debit card knows no limit except minimum low balance account. Say you have $700 in your checking account with minimum balance is $10, if your debit card is fraud the thief can pull out all $690 and leave the $10 for you. Some of you may argue "hey at least I still have 10 bucks" but $10 against $690? I prefer i keep the $690. You may report to bank which then investigates it but the process can take days, weeks or months while you need to live. You have children to feed, debt to pay, food to buy but you are without your money. If it is your credit card, though you still have to fight with your bank, you still have your money with you.

When you are considering getting a credit card you should be fully aware of all the consequences that could come with the responsibility of having and using one. Some people prefer to make use of a debit card instead of a credit card to keep them out of financial peril. This is all a matter of personal opinion and needs, wants, and desires. When you use a credit card, if you are not careful you could end up in a deep financial hole that is extremely difficult to get out of. Using a credit card takes a mature responsibility of resisting temptation, setting and sticking to a budget, and having the ability to pay off the charges at the end of each month.

A debit card is a form of “Credit Card” that generally comes with the Visa or MasterCard logo upon and works just like a credit card would with a few exceptions. These debit cards; if they have the major credit card logo upon it, can be used to any retailer that accepts those specific cards and for any purchases such as items, hotel reservations, and car rentals. The exceptions and differences between a credit card and a debit card is that a credit card is linked directly to your savings or checking account. Unlike a credit card, a debit card has a limit that is based upon the amount of personal money you have within these accounts. You cannot go over your limit, so there are no fees; however, you will want to be extremely careful, because as stated it goes by the amount of money you have within the account.

Additionally, because a debit card is linked to your savings or checking account you can use the card at any ATM without having fees applied (Unless you use an ATM of a non-accepting bank, then you may be charged $1.00 - $1.50 for using that ATM). By using a debit card you will avoid the fees typically associated with a credit card, such as interest charges on balances, cash advance fees, and it will not affect your credit rating at all. By using a debit card, you will be able to better control your spending because the charges will come directly out of the money within your account, this will help you (if you stick to a budget as mentioned before) refrain from over spending and keeping financial stability.