The Top Prepaid Cards for 2021
Prepaid cards are the kind of card that allows you to access the money you’ve loaded onto the account of a prepaid card.
They can be referred to as “prepaid credit cards” or “prepaid debit cards”; however, like credit cards, these cards do not require any borrowing, that’s why they don’t need a credit check. In contrast to debit cards, prepaid cards don’t have any connection to bank accounts.
Instead, you deposit funds directly into the account of your prepaid card. When you buy something with this card, make use of the cash you have loaded.
A prepaid credit card is an option to replace a credit line if you’re looking to stay clear of the temptation of accruing debt. Also, it can provide the convenience of plastic when you don’t meet the requirements for or have an account with a bank.
This is our opinion on the best-prepaid cards to be used in 2021. We also have some alternatives to look at.
The best option for no monthly fees: Bluebird American Express Prepaid Debit Account
The reason is that many prepaid cards charge different charges. However, if you’re not fond of fees and don’t want to be a victim of options, the Bluebird(r) American Express(r) Prepaid Debit Account might be an excellent option for you.
It includes the following features:
- Zero cost per month
- No activation cost
- There is no fee for ATM withdrawals for MoneyPass ATMs ($2.50 fee at all other ATMs, in addition to the ATM operator’s price should there be there is one)
- No charge for cash or debit card refills in Walmart (but it is up to $3.95 in other stores)
Also the option to deposit money into your card for no cost through direct deposit or mobile check deposit.
The only disadvantage for mobile deposit accounts that are free is the waiting time of 10 days. If you’d like your money faster, you’ll have to pay the equivalent of 1 percent or five percent of the amount on your check, depending on the kind of check. There’s a minimum of $5.
The best option for limit: MOVO Digital Prepaid Visa Card
The reason is: MOVO Digital Prepaid Visa Card comes with high limits: a maximum of $10,000 credit on the card and a daily $5,500 limit on withdrawals.
Additional limits like the amount you can add to your card for a particular period, regardless of your withdrawal amount. If you are planning to move a significant amount of money, you should look over the terms and conditions of your card to understand the comprehensive limitations.
MOVO Digital Prepaid Visa Card MOVO digital prepaid Visa Card comes with.
- No cost per month
- There is no activation cost. However, the physical card costs $5.95
- A $3 ATM cost is charged for withdrawals from the US (plus fees for ATM operators)
- A $4.95 each month cost If your account is inactive for more than 90 days
You can transfer funds to your credit card at no cost via direct deposit or directly from a statement at your bank. If you’d like to transfer with cash, do it at merchants that are participating — however, there might be a cost, and you’ll need to have a physical credit card.
A most effective way to save cash: Mango Prepaid Mastercard
There’s a reason: While other prepaid cards let you save money in an account for savings, however, it’s challenging to find one that will give you more rewards in return than this Mango Prepaid Mastercard.
The savings account has high annual yields, known as APR, up to 6 percent for balances up to $2,500. You’ll earn an 0.10 percent APY for balances more significant than that.
To qualify for the APY rate of 6 to qualify, you’ll have to spend at least $1,500 of “signature purchases” each month and maintain a minimum of $25 at the close each month. “Signature” transactions are purchases where you don’t need any PIN to authorize the purchase.
There are a few costs that you should be mindful of.
- fee of $5 per month, and the card issuer will waive if you make a minimum of $800 in direct deposits every month.
- There’s no fee for activation.
- Charge of $3 for ATM withdrawals in the United States (plus any additional fee that the ATM operator may charge).
- Cost to load money onto the card. However, it’s contingent upon the method you use and the location. However, you transfer money to the card.
The best cashback reward points: American Express Serve Cash Back
This is why rewards are among the essential advantages you’ll miss in the absence of credit cards. With this card, the American Express Serve(r) Cash Back program, you’ll earn 1 percent cashback. The cash can be credited into your bank account. It applied to future purchases for each purchase.
Although it’s not as competitive as the top cash-back credit cards, it’s still better than nothing.
Here are a few changes that the American Express Serve Cash Back(r) can charge.
- A monthly charge of $7.95 for the month, unless you reside or work in New York, Texas, or Vermont
- There is no activation charge.
- There is no fee for withdrawals at the MoneyPass ATMs (up to the $2.50 cost per transaction) ATMs outside of the network in addition to any fees the ATM operator could charge)
- Reloading cash at retail stores could cost up to $3.95, subject to the retailer.
Alternatives to Prepaid cards
Here is some alternative prepay cards that you should take into consideration.
Free checking account
Suppose you’re considering prepaid cards for your budgeting needs due to the costs associated with accounts at banks (like overdraft charges). In that case, You might be interested in a no-cost checking account with the credit union or bank instead.
Secured credit card
They can’t aid you with building credit the way secured credit cards can. Check out the offers on secure credit cards through Credit Karma to learn more about the options available to you. Certain secured credit cards don’t require credit checks or even banks to be able to apply for. Remember, however, that they require a security deposit. Therefore, you’ll need to pay a down payment to get this kind of credit card.
How can I obtain a prepaid card?
Based on the card you’d like to apply for, There are options to use.
- In-store -Some retailers such as Walmart allow customers to buy and transfer money to an existing credit card.
- Online – Many credit cards that are prepaid allow you to make an application on their websites.
- A Certain branch bank, such as Chase, offers prepaid cards you can apply to at your branch.
Are prepaid cards harmful to your credit score?
Prepaid cards don’t hurt your credit. As opposed to credit cards, don’t borrow any funds from the card’s issuer -instead, you’re accessing the funds that you’ve deposited to the card’s account.
This is because prepaid cards don’t need a credit report and can harm your credit score.
However, prepaid cards do not have any effect on your credit score. If you have a credit card that has a report to three major credit bureaus that deal with consumers by making your payments on time and in total, keeping your balance at a minimum can help establish credit scores. Prepaid cards do not make any activity available to the bureaus, which means they don’t aid in building credit.
Are prepaid cards a bad idea?
Prepaid cards are a good option in certain circumstances, such as when you don’t have an account with a bank or do not want to be enticed by the idea of making use of credit.
However, there are downsides for the prepaid cards. One major downside? The fees are pretty high for loading, holding, or withdrawing money on the card. Also, you can’t build credit using a prepaid credit card. If you have an account with a bank or want to open one, think about your options instead.
How did we pick these cards?
The most reliable credit cards for prepaid are not just excellent budgeting tools. They also come with numerous other options and are reasonably priced. We considered several aspects when we made our selection, including fees, additional benefits, free reloads, and methods of getting cashback.
Also, we wanted to emphasize cards that go over and above average. These cards come with unique features, such as an account with a high savings rate and compatibility with most the most popular digital wallets or an extensive no-cost ATM network.