Data suggests that more than forty million Americans don’t have a bank account. The reasons can vary, but this has opened an innovative avenue in the US financial market. Prepaid debit cards have taken the market by storm, and have ensured that there’s always a convenient method of performing transaction. Upon activation, you can use the card anywhere.
Not only does this save time, but it can also help you streamline your finance. There’s a recent upward trend in the number of prepaid card users. Here’s how it all started.
The Rise Of No Fee Prepaid Debit Cards
As the name suggests, you can reload these debit cards at your convenience. You don’t need a bank account to use this facility. That’s why prepaid debit cards are an easy way to perform transactions.
Being a popular non-cash medium for transaction these days, prepaid cards help a lot of people.
These include daily wage workers and those who don’t trust the banking system.
Prepaid debit cards let the user control their money according to their needs. But, since this concept is new, banks sneak in hidden charges when the card is used.
So it’s important to do some proper research when you’re choosing a prepaid card provider. The aspects that you should take into consideration are duration, no-fee period, and minimum balance you can have on the card. Look around and see if there are any other features that are attractive to you.
Why Are Prepaid Debit Cards So Popular?
Using a prepaid debit card is more of a matter of convenience. The user can deposit a certain amount with the number of retailers at the same time. After that, the card works like a regular debit card, where you can swipe it to make a transaction.
Retailers provide a lot of benefits if you’re a prepaid debit card user. These offers increase if you already have a bank account. You can get cash back offers, free ATM transactions, easy payments utility bills etc. Online shopping becomes easier as well.
Considering the advantages, consumers prefer to have the ease of prepaid debit cards.
What Are The Drawbacks Of Using Prepaid Debit Cards?
As easy as using a prepaid debit card might seem, there are some downsides. It can be somewhat expensive since there are fees and charges that you’ll have to pay. Since the prepaid card industry is at a nascent stage, bankers tend to charge ridiculous amounts. There are charges on minimum balance, calls to customer care, and even activation fees.
These charges can range anywhere from $2 to $20.
What You Should Keep In Mind When Using A Prepaid Debit Card
There are popular prepaid debit card providers who don’t charge any fees. American Express, Bluebird, Kaiku, Visa etc. don’t charge their consumers for activation. Many of them also don’t charge fees for monthly maintenance.
You can do some research on these service providers. Then you can choose which prepaid card would serve you best. When you don’t have a bank account, this kind of research is even more important.
Once you’ve decided what your priorities are, a prepaid debit card can ease the burden by a lot.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.