Who to avoid using credit card rather use a prepaid debit card. United States, this type of cards often used by those of low income group.
With the high costs associated with a credit card, it's understandable that people do not earn enough without breaking the bank accounts that use a prepaid debit card. The market research firm Aite Group data showed that about 70 percent of the people who use prepaid cards, those who make less than $ 45,000.
This card has its advantages. On the one hand, it is easy to use, because people have access to money quickly and can use it to shop online or at electronic kiosks. Second, a user does not need to ask personal data. In addition, the owner of this card does not visit any branch of the bank. Those that do not benefit them even creditworthy. The other advantage is that users learn how to budget because they spend only the amount loaded onto the card.
This card is also useful for those who have disability, unemployment, social security, assistance to get the veterans and other public services on a regular basis. As the U.S. government is about to eliminate the use of checks in 2013, have people who receive benefits in two ways. You can open a bank account or prepaid card. The second option is best considered particularly suitable for older people.
Prepaid debit cards are often from people who do not or avoid bank accounts preferred. Today, reports say that more than 10 million households in the United States to use this type of card. It is also expected that the amount will be charged on these cards to raise 288 million in 2014 from only $ 41 billion in 2008.
Unlike using a credit card, which consists of various fees for ATM use, cash advances to pay in fees and interest rates, prepayment fees are very low. The activation fee is about $ 10 monthly fee can be $ 9, while the cost of using an ATM to withdraw money is only about $ 2.50.
Unfortunately, the latest report shows that prices of stroke, these cards are required to go next month. Thanks to the implementation of a new scheme under which companies that lower prices to retailers free of charge. Therefore, card issuers have to get their lost revenue and the only way we can recover this by increasing the fares for people to get use prepaid debit cards.
Rising prices, however, is expected to take place immediately. The authorities say there is much work to change, including the codification of debit cards to distinguish from other types of cards. Until then, the user can decide what they will continue with or to open a bank account, regardless of the cost involved.
