Pre-Paid & Debit Cards
This category may be part of a list of credit cards, but Pre-Paid and Debit Cards are not really credit cards. This becomes even more confusing when you realize that Pre-Paid and Debit Cards look exactly like credit cards. They will even bear the names of the biggest credit card companies, like Visa, MasterCard, or Discover. The only way you could really tell the difference between a credit card and a debit card is if you already know the graphic or card's program name (like "Black Diamond," "NetSpend," or "Vision Preferred").
On the inside-or so to speak-a debit card can't be called a credit card. Credit cards are called credit cards because their credit balance represents the money banks and other organizations feel they can loan to you, based on your credit score. Your credit score can go up, increasing the amount of money you can be lent on credit, or it can go down, obviously making the opposite happen. A credit card's balance will reflect all of these changes. You always need to have a credit check to get a new credit card, but not with debit cards. Debit cards have nothing to do with credit whatsoever, they just carry the appearance of credit cards.
Pre-Paid and Debit Cards act as a way for you to carry around money and spend it like a credit card, without paying interest, since it is already your money, and you aren't borrowing it from anyone. It would be better to think of these kinds of cards as gift cards that you continuously load and can spend anywhere you want. The following will be a list of debit card perks to look forward to. Very few cards will have all of these benefits, but they are sure to have one or two. Knowing these perks will help you decide which card you will want to get for yourself.
Direct Deposit: Debit cards will either have accounts you can load money onto, or will link to a bank checking account. The fastest and most efficient way to get money is to set up your card program's direct deposit for both employer's checks and government benefit money. Most debit cards advertise that setting up direct deposit for your debit account gives you your money up to two days earlier than any other way you can get your money.
Cash Back Rewards: There are a few cards out there, that, like credit cards, will offer cash back, or rewards points programs to incentivize your purchasing. For example, the NetSpend family of cards is built for people who make online purchases frequently. On this kind of program, you can get rewards for buying things online, and some other benefits that aren't clearly defined on their site for some reason. Now, a good rewards program may not make up for hidden fees and other problems that may make a card more costly than beneficial.
Low Fees: Because you can't exactly fail to make money payments with a debit card, you are a smaller risk on the company, so Pre-Paid and Debit Cards charge smaller and fewer fees. If they did charge as much, it would cost too much to actually have the card. But be careful, even a low and rare $1.94 monthly rate is still more expensive than a Credit Card's regular $89 dollar annual fee. Almost no card pulls its weight if it has a monthly fee. Some rare and great cards, the best available, will charge no regular fees.