Every once in a while, most of us need a solution that will help cover some urgent expenses before the next payday. This solution can come in many forms, but in most cases, we turn to online loans to save the day.
One such loan is a payday loan. So it is not surprising that you want to know of loans that accept prepaid accounts. In this article, we will tell you all you need to know about payday loans.
Do Payday Loans Accept Prepaid Cards?
Yes. Some payday loan lenders do accept prepaid cards.
Most traditional lenders will only consider you for a loan if you have a checking bank account. Also, some online payday loan lenders will not offer you payday loans with debit cards. But what do you do if you only have a prepaid card?
Typically, a prepaid card is a cash-backed card, and, unlike a checking bank account, it hardly provides much information about your income. The card works much like a traditional credit or debit card, but you have to load money into it in order to use it. This is why most lenders do not rely on it to prove your income.
Thankfully, there are a good number of payday loans that accept prepaid debit cards. Even a quick search on google will give you a variety of online payday loan lenders willing to listen to you and offer you a solution when you are stuck.
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How Do Payday Loans That Accept Prepaid Cards Work?
To register for a payday loan using a prepaid card, you first need to identify a lender who accepts a prepaid card.
Once you find a lender, provide them with the required information — including your prepaid debit card. The lender will then use this information to check your loan eligibility before registering your information.
Each lender has its own criteria for evaluating your eligibility — they have different terms and conditions thanks ensure that they do not lose their money. These include security checks to ensure that the borrower is a law-abiding citizen and has the ability to pay back the money.
Sometimes your credit score does not affect your eligibility. However, other times lenders base their eligibility criteria on your credit score — they set a specific credit score limit, after which you will be disqualified.
Typically, you can register the card in your name and use it just like any other credit card, e.g., to make purchases in stores, withdraw cash from ATMs, etc.
Is It Possible to Use the Same Card for Another Loan?
Prepaid card loans come with great flexibility for customers. For example, if you need another loan, you don’t have to apply for a new card. You can use the same card for the new loan. This is even if you borrow for the second time, third time, or even the tenth time. You can use the same card for all the next loans.
However, keep in mind that you might need to pay some additional charges to do that. Just check with your lender to determine their terms and conditions for using the same card to access additional loans.
Also, payday loans deposited on prepaid debit cards can also be used for other purposes such as receiving government benefits, tax refunds, or more.
Payday Loans With Prepaid Debit Cards
Prepaid debit cards are predominantly designed for people who do not hold any checking accounts. As such, these cards are made flexible enough to accommodate different types of financing models.
But like other types of financing options, payday loans with a prepaid debit card also have their pros and cons. Depending on your financial situation, this loan option might be beneficial or not. Therefore, it is essential to think carefully and weigh all your options before making the final decision.
Like a bank account, payday loans with prepaid cards can give you:
- PIN and other standard security controls to protect your money
- Online and digital portal for you to manage your account and balance
When shopping for loans for prepaid cards, ensure the lender offers an online private portal to enable you to manage your account and as this will substantially simplify the process of paying your loan and managing your account.
It is essential to always have your ID with you when using your prepaid card. Also, first, check with your lender if you plan to use your card to settle another outstanding debt. Some lenders do not approve of this, as it is pointless to use a loan to settle another loan if you are not capable of servicing the interest charged on the new loan.
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Benefits of Prepaid Debit Card Accounts
Prepaid debit cards come with many benefits. But to reap these benefits, you need to use your card with utmost care. The benefits of a prepaid debit card include:
- It allows easy access to a cash advance when you most need it — great for emergency expenses.
- You can use it for both online and offline purchases.
- Prepaid debit cards lower your risk of overspending as they have a set limit.
- They allow you to streamline your transactions and seamlessly access online marketplaces.
- A prepaid debit card is a powerful money management tool as it allows you to monitor your transaction history in real-time.
- It is perfect when traveling because you won’t need to carry bundles of cash with you.
- It is an excellent option for people who are not eligible to open a checking bank account.
- Prepaid debit cards enable digital payments, obviating the need for manual processing.
While there are many advantages associated with prepaid debit cards, it is crucial to keep in mind that fees are charged for using the card. Therefore, although they can help meet emergency expenses, ensure you use them wisely. In addition, choose a card with low fees and charges and ensure you pay back your debt on time.
What Is the Difference Between a Credit Card That Is Prepaid and a Credit Card?
Typically, prepaid card loans are not linked to any traditional financial account. Rather you spend the money that you pre-loaded onto the prepaid card account — occasionally referred to as "putting money into the card."
If you enroll for a non-prepaid debit card, you will be given the option of applying for an account with a financial institution. It's comparable to creating an account at a financial institution, except that your debit card information will be saved in order to connect your traditional debit card to the prepaid card.
If you need to make a withdrawal from your checking account, you can easily do it at an ATM that is linked to the account's number. However, there will be no overdraft fees because the transactions are charged straight to the credit card.
Apply Now for Payday Loans That Accept Prepaid Accounts at WeLoans
Payday loans that accept prepaid accounts can be a lifesaver when you have a financial fix. Thankfully, many payday loan lenders accept prepaid debit cards as long as you pass specific eligibility criteria.
At WeLoans, we have already done most of the work for you. We have partnered with a long list of payday loans that accept prepaid debit cards to help find your lender as soon as possible.
Visit our site to compare and find a payday lender near you. Before settling on a single lender, you must carefully consider every lender's rates, policies, transparency, security, and confidentiality.