Prepaid credit/debit cards have become prevalent in recent years have become prevalent among the 70 million Americans who do not have full access tothe mainstream banking system. Since you do not need to undergo a credit check or for that matter even have credit to get a prepaid credit/debit card, many people use them out of sheer necessity. With your prepaid credit/debit card oneenters the modern world of banking and is able to use” plastic” at stores, ATMs or for online for purchases. This all comes with a steep fee every time you reload or purchase a new prepaid card. You are literally throwing away your money.

A major downfall of prepaid credit/debit cards is their lack of consumer protections that apply to conventionalbank-issuedcredit and debit cards. Lost or stolen bank-issuedcards limityour liability to $50by federal law,as long as you report the loss within two days, andmost banks generally waive this fee. Prepaid credit/debit cards on the other hand, (with the exception of those issued by our government or some employers) don’t have this protection under law. Currently, when you use a prepaid card you have no right to dispute unauthorized charges or other types of fraud. You’re just out of luck and your money.

There is a better way to find Prepaid credit debit!

Even with no credit history or a poor credit history there are ways to get a safe, low or no fee bank- issued credit card. A bank that is issuing a secured card requires that you deposit some money into a savings account up front, which the card issuer will use as collateral in case you miss payments. It’s still your money and you can it get back. You may also be surprised to find that you may qualify for a low limit unsecured card. Most unsecured low limit cards issued by major banks get reviewed after the first 5 to 6 months, and if you have been paying as agreed they will up your credit limit. Not only do these cards protect you from fraud and high fees, but they help you build positive credit.

To find out what kind of credit card you might qualify for, I have a link to a free card matching service at my website.Click the “Special Offers” tab and click on “find a credit card”. Look over your choices carefully. Many of the smaller banks that deal only with “subprime” clients charge excessive fees even on their secured products. Try to stick with major banks like CapitalOne, Bank of America, First Interstate and Wells Fargo. Watch out as some of the high fee banks that have similar names!