Prepaid Debit Card
Prepaid debit card works exactly in the same way as a debit card does. The only difference is that it is not linked with any bank account and it is very safe also. They work like credit card without the drawbacks of a credit card because here you are not using bank's money instead you are using your own money. Prepaid debit cards are gaining huge popularity because they are much safer and they also avoid many fees and penalties which you pay when you use a credit card. People are fed up of using paying in genuine penalty and interest rate.
There are some pros and cons of using a prepaid debit card. Few of them are mentioned here.
Pros
Prepaid card is very safe as they are not linked to checking account
They can be used everywhere where VISA and Master cards are used
They help in budgeting and keep your spending within the limit
These cards are easy to load. You can get them loaded with balance once they are out of balance directly from counter or electronically
If stolen or lost, you can get them very easily
Cons
Banks and institutions charge an initial setup fee and some fee when you load balance onto the card. NEXCEL does not charge any such fee and no monthly maintenance fee
Prepaid debit card doesn't help in improving your credit score in any way
Since they are not linked to any checking account you can pull only the amount which is loaded on it
So you must check all the terms before applying for a prepaid card