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The Best Prepaid and Debit Cards of 2024

Updated February 10, 2024

If you need to limit spending or use an alternative to bank accounts, the best prepaid cards available can help you with your goals. You can load and reload prepaid cards with funds and then use them like a debit card, avoiding checking accounts and some bank-imposed fees in the process.

At Bankrate, our staff has reviewed and rated hundreds of today's top credit cards, with independence and transparency, so you'll have an easier time making an informed decision. When reviewing the best prepaid cards of 2024, we considered accessibility, affordability and extra benefits, among other factors, to help you decide which prepaid card is best for you.

BEST FOR BUDGETING ONLINE
Rating: 3 stars out of 5
3.0
Info
Apply now Lock
on Netspend's secure site
See Terms
Info
Recommended Credit

N/A

Regular APR

Annual fee

BEST FOR NO ACTIVATION FEE
Rating: 3 stars out of 5
3.0
Info
Apply now Lock
on Netspend's secure site
See Terms
Info
Recommended Credit

N/A

Regular APR

Annual fee

Best for no credit check
Rating: 3 stars out of 5
3.0
Info
Apply now Lock
on Netspend's secure site
See Terms
Info
Recommended Credit

N/A

Regular APR

Annual fee

Best for building credit
Rating: 3.1 stars out of 5
3.1
Info
Apply now Lock
on Self's secure site
No Credit History
Info
Recommended Credit

Regular APR

Annual fee

Compare Bankrate's top prepaid cards

Card Name Bankrate's pick for Fees Bankrate Review Score

Budgeting online

Variable Monthly Fee

3.0 / 5

Apply now Lock
on Netspend's secure site
No activation fee
Up-to $9.95 monthly*

3.0 / 5

Info
(Read card review)
Apply now Lock
on Netspend's secure site
No credit check
Variable Monthly Fee

3.0 / 5

Apply now Lock
on Netspend's secure site

Building credit

$25

3.1 / 5

Info
(Read card review)
Apply now Lock
on Self's secure site

A closer look at our top prepaid cards

Image of Blue Netspend® Visa® Prepaid Card

Blue Netspend® Visa® Prepaid Card

Best for budgeting online

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Through Netspend Payback Rewards, you can earn cash back on select qualifying purchases, something rarely seen with easy-to-attain cards. The rewards program also gives cardholders personalized offers as an extra incentive.

Someone with a less-than-stellar credit score who wants less room for doubt when applying for a new tool to spend conveniently.

If your sole focus is building your credit, the unconventional Self — Credit Builder Account’s accessibility and opportunity to graduate to a valuable card make it a practical choice for individuals just starting out.

Image of Netspend® Visa® Prepaid Card

Netspend® Visa® Prepaid Card

Best for no activation fee

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When you start your card account, you’ll get access to a high-yield savings account that offers 5 percent APY on the first $1,000 you save. Also, if you refer a friend and they load at least $40 onto the card, you’ll each receive a $20 bonus.

Those looking for a guaranteed easy way to spend or access to banking services without an activation fee to get started.

If you’re a fan of this card’s savings account option, Brink’s Armored™ Account offers a similar benefit and the ability to earn some ongoing cash back rewards.

Image of Pink Netspend® Visa® Prepaid Card

Pink Netspend® Visa® Prepaid Card

Best for no credit check

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Although it’s a no-credit-check card, you can still take advantage of select cash back and personalized offers once you’ve opened your account.

Someone who wants a convenient way to spend and save while avoiding a credit check.

If earning cash back is one of your goals, consider checking out the Brink’s Armored™ Account, which offers 1X points on signature purchase transactions, and additional points on select limited-time merchant offers.

Image of Self - Credit Builder Account with Secured Visa® Credit Card

Self - Credit Builder Account with Secured Visa® Credit Card

Best for building credit

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Different from the other options here, this account will report your payment habits to the three major credit bureaus — a surefire way to boost your credit score if you practice good financial habits. Making on-time, sufficient payments with this option can do wonders for your future financial health.

A beginner credit user who wants to establish their credit through a unique, user-friendly account.

If you’re seeking access to a physical card immediately, the Blue Netspend Visa Prepaid Card is a solid choice that offers potential rewards, albeit one that carries a series of fees.

Image of Brink’s Armored™ Account

Brink’s Armored™ Account

Best for earning rewards

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Thanks to Mastercard, you’ll get benefits to protect against fraud, including $0 liability for unauthorized purchases and a few others. Also, this card is a cousin of the Netspend options, allowing you to utilize its reload network of 130,000+ locations.

Someone who wants a prepaid option that brings points and discounts. With this card, you’ll get 1X points on select purchases and limited-time offers and the opportunity to receive up to 50 percent discounts on prescriptions with participating major pharmacies.

If earning rewards is not your main focus, the Self — Credit Builder Account offers users strong credit-building features and a unique opportunity to graduate to a secured credit card after demonstrating good financial habits.

What to know about prepaid cards

Prepaid debit cards are similar to debit cards, except prepaid cards are not connected to banking or checking accounts. Instead, funds are loaded onto the card, then reloaded when those funds run out. Prepaid card users load funds onto the cards — either online, in person at specific locations, by depositing checks or reloading with cash.

Think of them as a cross between gift cards and debit cards — they have a card number, CVV code and expiration date like debit and credit cards, but no bank account associated with them. They also don't usually impact your credit score, as prepaid card issuers typically don’t check your credit when you apply, and they won’t check your banking history (though this isn’t always the case).

However, you should keep in mind that most prepaid cards have fees associated with them, such as:

  • Reload fees
  • Monthly fees
  • ATM withdrawal fees
  • Inactivity fees
  • Transaction fees

Prepaid cards vs. debit cards

While both function similarly, there are significant differences between prepaid cards and debit cards. For both types of cards, you can only spend the amount of money linked to or loaded onto the card. Prepaid cards and debit cards also look similar: both have card numbers, CVV codes, expiration dates and are often made of plastic with a magnetic stripe on the back. They work the same when checking out at stores or online. Neither has credit limits or revolving credit lines since the issuer or bank is not loaning the cardholder any money. 

Where prepaid and debit cards differ is where those funds are stored. Debit cards are linked to a checking account with a bank or credit union where you can add more money to your checking accounts via mobile deposit, direct deposit, ATM cash deposit or bank-to-bank transfers. That money is then available to spend with your debit card. 

Prepaid cards aren’t linked to a checking account, and customers load and reload money on the card directly, much like a gift card — bypassing the need for bank accounts altogether.

Pros and cons of prepaid cards

Make sure to read the fine print before you apply for a prepaid debit card. Some cards have activation fees and monthly maintenance charges, which can eat into your spending cash.

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Bankrate Insight

You can use Bankrate's Compare Credit Cards tool to help shop for the best prepaid card with as few fees as possible.

Pros

  • Checkmark

    No credit check needed — People with low or no credit can practice responsible credit habits without taking a hit to their credit scores.

  • Checkmark

    Budgeting tool — Because you’re limited to spending your deposit amount, prepaid cards make it easier to stay within your budget and cut back on monthly spending.

Cons

  • More fees than debit cards — Debit cards typically charge overdraft, monthly and sometimes ATM fees. But prepaid cards can charge those fees on top of transaction fees, reload fees, inactivity fees and more.

  • Can’t build credit — Prepaid card issuers don’t report to credit bureaus, meaning users won’t improve their credit scores over time with this card type. Secured credit cards are a better option for people with no credit or low credit to increase their scores.

Tips on choosing the best prepaid card for you

Prepaid cards are an excellent option for anyone with difficulty accessing traditional banking services, but not all prepaid cards are created equal. Here are some things you should keep in mind while shopping for a prepaid card.

  • Take a look at the fees. One of the reasons many people have a difficult time accessing traditional banking services is because of the costs. If your prepaid card charges a litany of fees, such as ATM fees, monthly service fees or reload fees, you should consider if the card is worth it.
  • Know your loading options. How difficult or easy will it be to reload your prepaid card? Are fees attached? Some prepaid cards will allow you to reload your card with ACH transfers, but you’ll often reload manually at an ATM. It’s important that you have access to several ATMs in your area.
  • Make sure the card offers mobile access. Mobile banking is becoming increasingly popular, and for good reason. It’s convenient, safe and can give you peace of mind. The best prepaid cards will offer you the option to use the cards online and access to a mobile app.
  • Consider if you’re banked or underbanked. Prepaid cards provide several benefits to people who don’t have access to traditional bank accounts (unbanked people) or access to banking services is inconvenient or too expensive (underbanked people). 

If you’re a person who has struggled to gain access to traditional banking services because of upfront costs (such as deposit minimums or initiation fees), a prepaid card might be the answer.

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Bankrate Insight

Although prepaid debit cards are often associated with younger shoppers, recent Experian data shows that the trend might be slowing. Gen Z have been opening credit card accounts at a quicker pace as of late. This change in credit card ownership and consumer behavior is attributed to the fact that more Gen Z are now old enough to be eligible for credit cards.

Expert advice on prepaid cards

To make the most of your prepaid card and ensure a seamless financial experience, follow these expert tips.

When to use a prepaid card

Prepaid debit cards let you use plastic when shopping online or in stores without the need for a traditional checking account. It’s ideal to use a prepaid debit card in the following scenarios:

  • You’re a parent or guardian who wants to give your teenager a card that isn’t linked to your personal checking or credit card account to make purchases online or in person. With a monthly spending limit, prepaid cards can teach teenagers budgeting and responsible card use early in life before they open their own account.
  • You’re cutting back on spending and need hard limits, which prepaid cards provide. You can reign in your spending every month by only using a prepaid card — once the money is spent, you can force yourself to wait until the new month to reload the card before swiping again.

How to maximize a prepaid card

When it comes to managing your spending and avoiding debt, a prepaid card can be valuable. With the right features and responsible usage, you can maximize the benefits of a prepaid card while staying in control of your finances.

Research and compare cards. Each prepaid card may come with its own set of features, fees and limitations. By conducting thorough research, you can find a card that aligns with your specific needs and financial goals. Look for cards with low or no activation fees, reasonable transaction fees and useful benefits tailored to your requirements.

Set a budget. One of the key advantages of using a prepaid card is that it allows you to set a budget and stick to it. By loading only the amount you plan to spend onto the card, you can avoid overspending and accumulating debt, so it's essential to do so with a strategic approach. 

Strategize your reloads. Consider your spending patterns and avoid reloading large sums of money unnecessarily, as it might tie up your funds or expose you to additional fees. Plan your reloads effectively. Strike a balance between having enough funds and not maintaining an excessive balance on the card.

How to avoid pitfalls with a prepaid card 

When it comes to managing finances, prepaid cards have gained popularity. They are convenient, widely accepted and can be used for online purchases, bill payments and foreign transactions. It can also help as you try to tighten your budget.

However, there are some drawbacks to consider: 

  1. Excessive fees

    Some providers may charge fees for activation, monthly maintenance, ATM withdrawals or balance inquiries. It's essential to compare fee structures before choosing a prepaid card that suits your needs since fees can add up and cut into your available spending. 

  2. Little to no protection

    Prepaid cards may not offer the same consumer protections as credit or debit cards in case of fraud or unauthorized transactions. It's crucial to review the terms and conditions provided by the card issuer regarding liability protection and dispute resolution processes.

  3. Won't impact credit score

    Activity on prepaid cards isn't reported to the credit agencies since it's not a loan. If you are looking to raise or rebuild your credit, prepaid cards won't do the job.

Whether prepaid cards are worth it depends on your individual financial goals and preferences. If convenience and budgeting outweigh potential fees and limited consumer protections, then opting for a prepaid card can be a beneficial choice. However, thorough research is necessary before making an informed decision about using prepaid cards as part of your financial management strategy.

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.

How we assess the best prepaid cards

When evaluating the best prepaid cards, we take into account several factors, including how cards score in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from low fees to wide acceptance to earning rewards. 

We analyzed the most popular prepaid card options and  scored each card based on its fee structure, rewards rate and earnings, perks and more to determine whether it belonged in this month’s roundup. 

Here are some of the key factors that we considered: 

Frequently asked questions