There is an enormous amount of difference between a bad debit card and a prepaid card. Prepaid debit cards are only as good as the company that issues them. I have seen some really cheap debit cards that charge only a buck or two to load them and give customers access to regular banking services. Those are the only prepaid cards that I like because they do their job and do it well.
The other types of debit cards that I have seen are money pits. They charge twenty bucks or more just to activate them and then are really expensive to load with cash. They even charge fees to use them which is the purpose of a debit card. These cards are being sold by celebrities and entertainers who are using these cards to rip off the public and get even richer. Skip these bad cards and stick with ones you can trust.
The truth is there is not much difference between a quality credit card and a debit card. The best prepaid debit cards serve many of the same functions as credit cards do. They provide customers with access to electronic services that they normally would not be able to get. Let’s say you wanted to rent a car for example. Renting a car can cost a fortune if you do not have a card to guarantee the rental with. Rental car agencies will place huge holds that can be as high as $500 or more for people that do not have debit cards. Renting a hotel is even worse since companies will charge you for the whole stay if you do not have a card. You will have to put down a massive cash deposit that will cover all of your hotel related expenses. A prepaid debit card will allow you to avoid plunking down extra cash and leave you with more of your own money.
