8 Awesome Reasons Why a Debit Card is Good For a Bad Credit Rating
0Are you struggling with debts and cannot get a credit card? Well, a debit card is all you need to manage your budget and rebuild your credit rating. University students will also find the prepaid cards favourable over the credit cards issued by banks with high interest rates. Using the debit cards to make payments comes with other benefits.
How to get debit cards
Applying for a debit card is easier than applying for a credit card. It is always best to get advice first, but, generally there are no long forms to fill or the possibility of being denied the card due to debts incurred. Also, there are no employment verifications, credit checks or banks accounts required.
Benefits of debit cards
Unlike the traditional credit cards, there are various benefits that come with the debit cards. You can apply the debit cards online and complete the process in seconds. You will only be required to pay a setup fee and a deposit which acts as a credit limit. Once you receive your card, you can begin using it to make purchases.
A debit card is safe to use
When carrying huge amounts of money, you are more likely to lose it. However, a debit card protects you and you can deposit any amount of money in your card. Prepaid debit card holders also enjoy the fraud monitoring services by visa to ensure the security of your card.
They are accepted everywhere
Visa debit cards are accepted everywhere around the world as long the merchants accept electronic payments. Whether you are travel for leisure or business, remember to have your debit card intact.
Control your spending habits
Where you make purchases with your debit card, you are spending your own money and you will be a good position to plan what to buy. When making payments using a credit card, you are using borrowed money and this has interest charges attached to them. In most cases, you will plunge into debts.
No overdraft fees
Using debit cards allows you to spend within your means without the fear of overspending. You only spend what you have in your debit card and this allows you to plan your expenses in advance. Also, there are no interest charges on the card unlike in a credit card.
How to improve credit rating
Unlike credit cards, Debit cards are a perfect solution for people who have a bad credit rating. The cards help card holders to plan their budgets and spend with their limits. Your spending habit is controlled since you only spend depending on how much you have in your account.
Some debit cards also come with a credit reporting feature. This feature enables people with a bad credit rating to improve their credit rating. This is achieved by reporting monthly payments to the credit reporting bureau.
Why university students need to have a debit card
The use of debit cards has risen in recent years with a reported increase in customer usage. The University students can also benefit from the convenience and flexibility of prepaid debit cards. Students can use the debit cards as a financial tool as well as a tool for accessing university buildings. The students can also make purchases using the plastic money instead of carrying cash everywhere they go. Students who lack bank accounts can also use the debit cards to receive their education aid disbursements.
