If you are the type of person who tends to routinely overspend on purchases or if you’re someone who wants to take control of your spending habits immediately, then a reloadable debit card may just be the ideal solution for your situation.
Reloadable debit cards allow you to have a prepaid amount of cash available anytime in the form of plastic, such as a MasterCard or Visa. You don’t have to have a bank account, you don’t have to have a good credit rating to get one, and you can only spend up to the amount that you have loaded. Banks or issuers normally guarantee approval if you can provide sufficient identification information, such as your driver’s license, birth certificate, or social security number.
The major advantage to Visa prepaid debit is that you avoid having to pay interest charges, which can be a major savings over time. You also avoid paying any type of late fees, non-sufficient funds (NSF) fees, annual fees or overdraft fees. Be sure to review the terms of your agreement though, as some issuers may charge any (or all) of the following fees:
o Overdraft Fee: If you accidentally charge more than the available balance, you will be charged an overdraft fee. This could be as high as $30 or more and you will still have to pay the balance of the amount you overspent as well, so be sure to keep a close eye on your spending!