Prepaid Debit Cards
Your guide to all Prepaid Cards
Prepaid Cards are suitable for people with any type of credit score and are useful in times when you need a debit card but you do not have a bank account.
Consumers with bad credit have got a paypal: New debit card adds new twist to the prepaid card market
Consumers with bad credit have been flocking to the e-commerce company PayPal, whose prepaid credit card is going the extra mile when compared to similar services.
Like other prepaid card services, people have the opportunity to obtain a service similar to that of a credit card without strenuous credit checks and an analysis of credit history. Contrary to that, all that is required is a PayPal account – which can be obtained in minutes without any details on a financial situation.
It has been reported that some cash-strapped consumers are beginning to benefit greatly from the service that is being offered. Potential customers would probably include people who would do not want high rate bad credit loans.
PayPal is a subsidiary of eBay, with any profits made from sales on eBay being directed into a seller’s PayPal account. The prepaid card doubles up as a debit card and allows a balance in a PayPal account to be used wherever Visa is accepted.
The benefit of this includes a reduction in the waiting time that is enlisted with transferring funds from PayPal into a bank account, which usually takes between three to five business days. Some consumers who are suffering with bad credit and are having difficulty making ends meet are beginning to benefit from the convenience of instantly having access to funds in a PayPal account for purposes like Internet shopping and cash withdrawals.
However, such convenience comes at a price. Even though there is no transaction fee should you choose to make purchases with a PayPal debit card, there are cash withdrawal fees of £2 a pop to be considered too, which can become expensive if the cash machine charges for cash withdrawals also.
In addition, with PayPal deducting fees for incoming funds into an account and topping up via PayPoint and Post Office both costing £1 per top-up respectively, it can seem impossible to avoid fees which may be costly if a card is used frequently.
Even though the card can seem like the ideal option for somebody with bad credit who is looking for the freedom of a credit card, the convenience can prove to be costly. PayPal’s profit margins on this card are a lot higher than prepaid cards which have similar offerings - which is not very recession friendly. There are some consumers who are looking for other options and prefer to look elsewhere for a prepaid card; for those who remain however, the convenience justifies the cost.