Credit and Debit Card Ratings

Debit Cards: A Growing Threat to the Banking Industry

With ease of use and widespread availability, debit cards are becoming a growing threat to the banking industry.  Last year, prepaid debit card usage was up 18% while checking account usage plummeted from 92% to 88%.  While users avoid overdraft fees, debit cards are not cheaper than checking accounts.

Incidentally, scores of users walked away from banks and the fees associated with them, lured by big named celebrity endorsers only to wind up paying even more money.  John Ulzheimer, President of Consumer Education at SmartCredit.com, warns against being tricked into thinking there aren’t any free alternatives.  “Debit card users are lazy,” says Ulzheimer.  “Free checking isn’t gone.  With just a cursory amount of shopping around, you can find a debit card that’s not only free, but will also give you an unsecured line of credit.”

Gerri Willis of Fox Business Network’s The Willis Report fears,  “People are being robbed blind simply because they like the branding and ease of use that comes with the debit card.”  Over $82 billion was uploaded onto debit cards last year alone.  “Debit cards don’t help your credit score, there are no savings involved, and the users don’t have the opportunity to establish a relationship with a bank,” she says.  “You need access to what the banks have to offer to purchase homes, do business, and even education for your children,” said Ulzheimer.

Today, many neighborhood stores and markets offer free “cash back with purchase” options at checkout, helping alleviate some of the hits most users take to their wallets, but in the long run, a little research can go a long way.  For more research on the best options for you, visit our in-depth reviews here on bestprepaiddebitcards.com.

For more information from The Willis Report, visit:  http://video.foxbusiness.com/v/997395602001/millions-turning-to-prepaid-debit-cards?intcmp=related

or visit :  http://video.foxbusiness.com/v/1559371429001/are-prepaid-debit-cards-mistake?intcmp=related

For more from this author visit:  Tameka Riley’s Author Page

Category: Best Low Fee Prepaid Cards

Millions of people are turning to prepaid debit cards as a smart alternative to carrying cash and writing checks. Almost anyone can qualify and they don’t require a credit check or a bank account.

Though they carry credit card logos and can be used anywhere a credit card is used, unlike a credit card, they do not offer a line of credit. The user can only spend the amount that has been loaded onto the card or placed into the account associated with the card.

There are dozens of debit cards on the market, many of them issued by the same bank, but fee structures are vastly different. Bestprepaiddebitcards.com has done all the research for you and provides comprehensive reviews to help you decide which card is best for you.

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  • Debit Cards: A Growing Threat to the Banking Industry

    Debit Cards: A Growing Threat to the Banking Industry

    With ease of use and widespread availability, debit cards are becoming a growing threat to the banking industry.  Last year, prepaid debit card usage was up 18% while checking account usage plummeted from 92% to 88%.  While users avoid overdraft fees, debit cards are not cheaper than checking accounts.

    Incidentally, scores of users walked away from banks and the fees associated with them, lured by big named celebrity endorsers only to wind up paying even more money.  John Ulzheimer, President of Consumer Education at SmartCredit.com, warns against being tricked into thinking there aren’t any free alternatives.  “Debit card users are lazy,” says Ulzheimer.  “Free checking isn’t gone.  With just a cursory amount of shopping around, you can find a debit card that’s not only free, but will also give you an unsecured line of credit.”

    Gerri Willis of Fox Business Network’s The Willis Report fears,  “People are being robbed blind simply because they like the branding and ease of use that comes with the debit card.”  Over $82 billion was uploaded onto debit cards last year alone.  “Debit cards don’t help your credit score, there are no savings involved, and the users don’t have the opportunity to establish a relationship with a bank,” she says.  “You need access to what the banks have to offer to purchase homes, do business, and even education for your children,” said Ulzheimer.

    Today, many neighborhood stores and markets offer free “cash back with purchase” options at checkout, helping alleviate some of the hits most users take to their wallets, but in the long run, a little research can go a long way.  For more research on the best options for you, visit our in-depth reviews here on bestprepaiddebitcards.com.

    For more information from The Willis Report, visit:  http://video.foxbusiness.com/v/997395602001/millions-turning-to-prepaid-debit-cards?intcmp=related

    or visit :  http://video.foxbusiness.com/v/1559371429001/are-prepaid-debit-cards-mistake?intcmp=related

    For more from this author visit:  Tameka Riley’s Author Page

  • 5 Reasons Parents Should Get Prepaid Cards For Teens

    5 Reasons Parents Should Get Prepaid Cards For Teens

    Along with a driver’s license, a prepaid debit card can be one of the most important pieces of plastic a young adult can get

    Amid all the job losses and bankruptcies, our recent economic downturn has been especially difficult on young people. With a persistently dreadful job market, many college graduates are leaving school with degrees, but few prospects. Thanks to the Credit CARD Act of 2009, those under 21 are also not likely to be entering the adult world with a few years of credit history under the belt; the law prohibits anyone under 21 from getting a credit card unless a parent co-signs or they can prove sufficient income to qualify.

    There are plenty of reasons to cheer this legislation. It’s hard to argue that handing out credit cards to teenagers with no income and no restraint was a good idea. Still, credit cards used responsibly could be a real benefit to young people, ensuring them access to financial resources far from home and (hopefully) teaching vital money management skills.

    Into the void created by the elimination of credit cards for most young people have come prepaid debit cards, which offer many of the benefits of credit without some of the more distressing pitfalls. Designed to work much like a gift card from a supermarket or bookstore, prepaid debit cards allow a parent to fund the card with as much or little money as they choose, and then the teen can spend that amount when and where she likes. Along the way, hopefully, she can learn something about managing finances. Sending a child out into the adult world with a mountain of debt is obviously bad, but so too is letting them loose without any experience with plastic. Getting a prepaid card may be the answer you’ve been looking for – and it doesn’t even require a bank account.

    With all due apologies to David Letterman’s top 10 list, here are 5 reasons parents should hand their teens a prepaid debit card:

    1. It can save money. As in, it can save you money. Have you ever handed your kid a $50 bill for a $30 event and asked for the change, only to be told later that there wasn’t any money left? Once you give your son a prepaid card, he has exactly what you put on his card, nothing more.

    2. It teaches budgeting skills. Think about it. Let’s say your kid is off at college, or even in high school and still under your roof. If you want to teach them that spending decisions have consequences, simply fund a prepaid debit card with an amount you decide is reasonable for a month and step out of the way. Sure, your teen can go out and blow the entire amount in a night. But if you stay strong and don’t replenish the card’s account, they’ll probably do better the next month. Weeks of eating nothing but Ramen noodles can provide invaluable focus.

    3. It also teaches priorities. Ultimately, how we spend our money says a lot about what matters to us in life. And the same is true with teens. By handing over a prepaid debit card and giving them the freedom to choose how to spend it, you are helping them figure out the experiences and material things that really add value to their lives.

    4. Training wheels for credit cards. Unless things go terribly wrong, your teen will eventually get a credit card. Having used a prepaid debit card for a few years beforehand should give them the chops to handle credit. “Prepaid debit cards do offer a safe environment for young people to learn how to transact using plastic. Most young people will eventually use credit cards, and learning about financial responsibility in a controlled environment offered by a prepaid card will likely benefit future credit card users,” says John Ulzheimer, president of consumer education at SmartCredit.com.

    5. It can prevent a financial emergency. Adults of a certain age can probably still remember how we convinced our parents that it was a good idea to get a credit card when we were young. You know, by scaring the heck out of them with tales of losing cash and being penniless in a faraway city. Well, like it or not, the tables are turned and the same story ought to work on you now as a parent when it comes to prepaid cards. But guess what, you were right then and they are right now. Prepaid debit cards, like credit cards, can be cancelled and reissued when lost or stolen in a way that cash simply can’t.

    Of course, there are fees associated with prepaid cards — though the money you lose when your teen forgets to give you change might well exceed those fees. So go ahead and get your teen a prepaid debit card and begin them on their journey towards becoming a financially responsible adult.

Credit and Debit Card Ratings