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Prepaid Visa Card For Direct Deposit

What Is A Prepaid Credit Card?

By Jacobey Larstons on March 04, 2012

A prepaid card is just like a debit bank card, when you make purchases your withdrawing from funds you have already deposited on your account. However for individuals that do not have access to a major Visa or MasterCard these offers are ideal because they do not require a credit check.

Instead of having a bank account to withdraw money from for your purchases this card is going to withdraw money from your account in which you have deposited or loaded funds to. You can load funds on this account by using direct deposit, green dot money pack, visa ready link, PayPal transfer, ACH transfer, direct deposit, or your tax returns, direct deposit with your benefits check...

This card will be issued as a major Visa or MasterCard and can be used everywhere those are accepted. You can make purchases online and over the phone using this. They can also be used to reserve a hotel room, book travel, buy gas at the pump...

Prepaid debit cards emerged as a result of two recent economic trends. The first was the credit and lending crisis in our country which caused banks to basically stop lending credit to everyone, especially individuals with a less than perfect credit report.

The other reason is because Congress passed new lending legislation that regulated what fees and interest rates the credit card companies could charge. These laws have essentially stamped out unsecured bad credit lending.

We have seen all the major banks get into the prepaid industry as well as many celebrities including: Russell Simmons, Suze Orman, Kim Kardashian... With the new government legislation and banks dramatically changing their lending requirements unless you have an excellent credit score, typically 650 or better, you are not going to be able to get approved for an unsecured credit card.

What Else Can This Prepaid Card Do

You will also be given access to an online payment center in your account interface. This will enable you to have payments sent to pay your mortgage, phone bill, cable, electric, utilities... You can also pay an individual.

To use this simply log into your account online go to the bill payment section, fill in the necessary information, and press send. Then a real check written in your name will be mailed off to pay the bill or individual. You can set up future payments, recurring payments, and of course one time only payments. This can save you money by avoiding costly check-cashing fees and time because you can do it from anywhere you can access the internet.

The one drawback to this card is it will not report to the major credit bureaus. However by simply paying your current bills on time you can still create a trail of positive payment history with the credit bureaus which will help your credit score improve. Additionally it would be in your interest to dispute and remove negative credit off your credit report as this will help to improve your payment history. It is estimated that your payment history is roughly 40% of your overall credit score and therefore a very important piece of information.

Original article published on SooperArticles.com

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