Sometimes it’s the little things that stop you from getting a chance in a financial emergency. When you’re looking for a little cash to bridge the gap between paydays, not having a valid bank account for direct deposit could avert you from getting a loan.
But that trend is changing. Today, you’ll find temporary lenders combining access to fast cash with the convenience of a prepaid debit card. These debit cards are normally branded with Visa or Mastercard, offering the flexibility to pay bills or swipe for requirements at retailers nationwide.
Here’s what to know about prepaid debit cards that can help you access your loan funds without a bank account or strong credit.
With a prepaid debit card loan, you apply for your short-term loan either online or in a store. If you’re approved, your lender transfers your approved funds into an eligible loan account. It then registers a prepaid debit card with that account, either giving it to you in person or mailing it to your home.
You’ll normally need to register the card in your name, either in person, by phone or online. Because most prepaid cards are either Visa or Mastercard, you can then begin using your card as you would any other type of credit card. Use it at stores, utilities or even ATMs to withdraw your cash
Yes. If you need a loan in the future, you’re often able to receive your moneys on the same card for a fee, from time to time even with a different lender.
And you’re not restricted to receiving only payday loans to your debit card. You can often set it up to receive direct deposits, providing quick access to your paycheck, government benefits or tax refunds.