These days, its almost impossible to get along without a credit card. If you want to buy an airline ticket, make a reservation for a hotel, rent a rental car, or make any sort of online transaction from setting up a monthly internet subscription to buying a book at an online retailer you are going to find it difficult, if not downright impossible, to do any of these things without a credit card. But what does this mean for the person with poor credit who is unable to obtain a credit card? Many people get turned down for major credit cards, but they can still function in society by using a prepaid debit card.
You can open a prepaid debit card account by depositing money into an account, much the same way you would open a checking account or savings account. At that point, you will be issued a prepaid debit card which you can use anywhere like you would use a credit card. The greatest advantage of a prepaid debit card is that, unlike a credit card, there are no interest charges and no monthly bills. You simply replenish the amount in the account when you want more money to be available.
You can open a prepaid debit card, or prepaid credit card, that is not attached to a checking account, but you may need to pay a fee to set up the account. This fee varies depending on what company you are working with, but it generally falls in the range of about $5-10 per card. You may also have to pay additional fees when you deposit more cash into your prepaid debit card account. But for those who cant qualify for a traditional credit card, the benefits will far outweigh the disadvantages of having a prepaid debit card. You will be able to reserve a rental car or purchase a plane ticket, without worrying about interest or credit card payments.
