A prepaid cash card is good to have if you want to have cash with you anytime but do not want the bulk of bills in your pocket. It is akin to a debit card only that it is not tied up with any bank account. You may use ATM machines to withdraw cash from it but your card will be debited for withdrawal fees. It is becoming very popular today because many actual and online stores accept cash card as payment, making it very convenient to just a carry a card around with you wherever you go.
If you were denied your credit card application, a prepaid cash card is a good alternative. It has many advantages too over a credit card. You can better control your spending with a cash card because you can only use it for as long as the balance is not yet used up. Whereas with a credit card, the spending limit is virtually your credit limit. The billing statement will arrive too late for you to find out that you cannot pay for it in full. If this goes on, you will find yourself trapped in financial debt.
There are hardly any requirements to qualify for a cash card. Many nonbanking companies offer it. Just load it up with any amount you feel is reasonable for you and you can use it immediately. This is convenient especially when travelling to different states or other countries. You do not have to worry about snatchers grabbing your purse or bag. They could not take any cash from you. If they do manage to steal your prepaid card, they will not be able to use it because they do not know your security code.
Another advantage is that you get to know immediately your expenses. Whatever amount is deducted from your card is your actual expense. There are no future payments to worry about or take care of because once you swipe your card, it is as good as cash payment already. This is a big help to many people setting a budget every month. They will only deposit to the card an amount that they could afford to spend for a month.
Although these cards are not covered by the Federal Deposit Insurance Corporation (FDIC), there are many reputable prepaid cards out there are many stores recognize and accept. Just look for logos in the card that certify it is legitimate. Popular online auction sites also accept prepaid cards as payment.
Just like any card though, you need to control your own spending habits. Even if you do not go overboard your prepaid balance, be more conscious to spend only on what is necessary.