Green Dot Prepaid Card is a good card to consider if you’re trying to keep your spending in check or if you’re trying to get a credit card when your credit history doesn’t look too good.
You can find Green Dot cards sold at retailers like CVS, Rite-Aid and Wal-Mart. The latest version, the Green Dot Reloadable Prepaid Mastercard or Visa, has a higher monthly fee, but a lower activation fee. And compared to most Green Dot cards, this one has no free ATM access.
PROS
- Free online and mobile bill pay.
- Free mobile and direct deposit.
- Visa and MasterCard are widely accepted among merchants.
CONS
- Steep $7.95 monthly fee
- No free ATM network
- Loading cash on your card at retailers costs up to $4.95.
- Withdrawing cash through a bank teller costs $2.50.
Continue reading below to learn more about the card and its features.
(Visit the link above to learn more about Green Dot)
Prepaid Debit Cards Overview
What is a prepaid debit card?
A prepaid debit card is pre-loaded with a certain amount of cash, which can be used the same way that a credit card is use. Because you’re only spending the money you load onto the card, this won’t help you build credit.
Similarly to a debit card, a prepaid card works at any merchant that accepts Visa, Mastercard or American Express. This is a safer option and more convenient than using a cash. Most prepaid card usually has a mobile app available to deposit checks and transfer money.
And unlike checking accounts, prepaid cards doesn’t have same features as you would when you own a checking account. This includes services like free ATM or branch networks and checks! If you’re needing these services, make sure you check out best checking account or you can also see how to open a second chance checking account, if you’ve struggled with banks.
Prepaid debit card vs. debit card vs. credit card
| Prepaid Debit Cards (Pay Before) |
Debit Cards (Pay Now) |
Credit Cards (Pay Later) |
| Load money onto the card via cash, checks, direct deposit or a bank account before paying for transactions. | Use money directly from a checking account when paying for purchases or withdrawing money from an ATM. | Borrow money from a bank when you use the card and pay the money back later. |
How does FDIC insurance on prepaid cards work?
It’s good to know that prepaid debit cards nearly always have FDIC insurance, so your funds are protected in case the issuer goes bankrupt. Please note that only financial institutions can have FDIC insurance, so if a prepaid card is managed by a bank or by a prepaid card company that is partnered with a bank offers that insurance.
Make sure you register your prepaid debit card with your name and other identification information in order to be eligible for FDIC insurance and other protections.
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Bottom Line
Prepaid cards aren’t for everyone, but if you’re looking for a basic credit card that won’t give you any complications then you should consider looking into the Green Dot Prepaid Cards.
This card is best for people:
- With bad or no credit
- Wants to curb their spending
- Who wants to reload at least $1,000 monthly
- That wants to access banking features without the need for a credit check
While you’re here on HMB, you can check out other credit card offers and see other prepaid card promotions!
