What Is A Prepaid Card And How Does It Work?

This guide covers how to get a prepaid card, why you might want one and the fees you’ll want to know about. Although it’s a no-credit-check card, you can still take advantage of select cash back and personalized offers once you’ve opened your account. Because they don’t require a contract, prepaid phones are fast and easy to buy. They also are available at many locations, ready to use immediately and even disposable. Talking more one month and less the next makes no difference, and leftover minutes roll over from one month to the next. Plus, if you want to change to a different type of plan, a prepaid phone gives you the freedom to switch whenever you want.

• A prepaid card forces you to stick to a budget by declining purchases that exceed the balance in your account.
• If you’re looking for a payment option that allows you to earn rewards on every purchase, you may want to consider a Capital One credit card.
• Alltel Wireless — Monthly or per-day plans may be a deal for frequent talkers; phones include Motorola Razr and Kyocera Slider Remix.
• In order to get a debit card, you’ll need to open a checking account.

When you use a prepaid card, you’re only using the money that you’ve loaded onto it. You aren’t borrowing any money, and the card doesn’t draw from any other financial accounts you may have. To give you an idea of what to look out for in your card’s terms and conditions, here are some of the key fees you’ll pay with one popular option — the Western Union prepaid card. Once you have a balance, you can often view and manage your transactions through an app — and you can spend your money just as you would with any other debit card. Just tap or swipe with merchants, add to mobile wallets, or make withdrawals. By clicking “Agree and See Results” you acknowledge receipt of our Privacy Notice, Privacy Policy and agree to our Terms of Use.

Unlimited talk, text & data.

Alltel Wireless — Monthly or per-day plans may be a deal for frequent talkers; phones include Motorola Razr and Kyocera Slider Remix. Some plans offer unlimited text messaging and unlimited nights and weekends. Boost Mobile — Targeted at youthful users; strong on in-demand features like push-to-talk (PTT) walkie-talkie capabilities and a camera phone with MP3 player and video recorders. For the tech conscious, T-Mobile offers the Motorola RAZR V3 phone at $99.99 with quad band world phone, Bluetooth wireless, camera, video, voice recorder, phone book, clock and calculator.

• This credit can be used for making calls, sending messages, and accessing data services.
• The main disadvantage of using a prepaid card is that you can only complete transactions up to the amount you have loaded onto it.
• Prepaid cards are issued by banks and financial service companies.
• Make sure to read the fine print before you apply for a prepaid debit card.
• However, credit score alone does not guarantee or imply approval for any financial product.

That’s why it’s important to research credit cards ahead of time and only apply for the card that will best meet your financial needs. If you think you’re not likely to qualify for a credit card, a prepaid card is probably the way to go because you don’t have to worry about qualifying for a specific card. The prepaid card issuer grants you access to the card without checking your credit history. Boost Mobile has a few how to change your tax filing status enticing plans at 5GB or less, particularly if you’re a new customer. The carrier offers a $14 a month plan that offers 5GB of high-speed data per month with the ability to use that allotment for mobile hotspot. You’ll need to prepay for 12 months of service to get this offer ($168), but it’s better bang for your buck than the $15 per month for 5GB of data Mint Mobile offers new customers who prepay for a year.

When you should get a prepaid card

A key factor that differentiates prepaid cards is that they aren’t linked to a bank account like a debit card is, and they aren’t linked to a line of credit like a credit card is. Whether used as a budgeting tool or as an alternative way to bank, prepaid debit cards can help you store and spend money. At Bankrate, our staff has reviewed and rated hundreds of today’s top credit cards, with independence and transparency, so you’ll have an easier time making an informed decision. When reviewing the best prepaid cards of 2024, we considered accessibility, affordability and extra benefits, among other factors, to help you decide which prepaid card is best for you.

What’s a prepaid card?

With Stateside International, make unlimited calls from the US, Mexico, or Canada to landlines in 70+ countries and mobile lines in 30+ countries. By following these tips, you can ensure that you choose the right prepaid SIM card that meets your needs and enhances your mobile experience. Take the time to research and compare different options to make an informed decision. Now that you’re familiar with the different types of prepaid SIM cards available, you can choose the one that best suits your needs and budget.

Where can you buy prepaid cards?

Secured credit cards help build credit, and if you can’t get a regular checking account, try second chance checking. These accounts provide another shot at mainstream banking and its perks. You can buy a prepaid debit card from a retailer, bank, credit card company or other financial services provider. When you purchase a prepaid debit card and add funds to it, those funds are usually held by a bank or credit union. Note that they can also be called stored-value cards, pay-as-you-go cards or, more formally, general-purpose reloadable prepaid cards.

What’s your mailing address?

Before committing to a prepaid card, be aware of any fees that come with it. Some prepaid cards may charge cardholders fees for withdrawing cash, reloading a card, checking the balance or even making purchases. Boost Mobile has added an unlimited plan that offers unlimited talk, text and data to new users for $25 a month with taxes and fees included. Unlike Mint Mobile’s 12-month plan, our previous pick in this slot, Boost’s plan isn’t tied to 12-month increments. You do, however, need to be a new Boost customer to get the offer.

Prepaid debit cards can be used much like regular debit and credit cards, to spend in person and online, and make cash withdrawals. However, prepaid debit cards are usually linked to a particular account you’ll need to top up — which doesn’t have to be your primary checking account. When you start looking at prepaid cell phone plans, you’ll find a lot of variations. You can, for example, buy a phone with basic service and then just add minutes as you need them. You can select a more high-tech phone with added features and services, and you can buy larger bundles of minutes to get them more cheaply. You also can choose a prepaid phone contract that’s almost a hybrid of a prepaid plan and a traditional monthly plan.