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 2023, we considered accessibility, affordability and extra benefits, among other factors, to help you decide which prepaid card is best for you.
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| Card Name | Bankrate's pick for | Fees |
|---|---|---|
| Visa Prepaid Card | Budgeting online | Variable monthly fee |
| Netspend Visa Prepaid Card | No activation fee | Up to $9.95 monthly fee |
| Pink Netspend Visa Prepaid Card | No credit check | Variable monthly fee |
| Self — Credit Builder Account | Building credit | One-time $9 to $15 account fee (varies by product) |
| Brink’s Money Prepaid Mastercard | Rewards | Variable monthly fee |
Read our Netspend Visa Prepaid Card review.
Read our Self — Credit Builder Account review.
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. 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.
Similar to debit or checking accounts, prepaid cards allow users to spend up to the amount of money associated with the card. Prepaid card users load funds onto the cards — either online, in person at specific locations, by depositing checks or reloading with cash. Once the money is loaded onto the card, you can spend up to that amount online, in physical stores and to pay bills online before depositing more money onto the card again.
Keep in mind that most prepaid cards have fees associated with them, such as:
What are the differences between prepaid cards and debit cards? Well, prepaid and debit cards function similarly — you can only spend the amount of money associated with the card. Prepaid cards and debit cards look similar, and both have card numbers, CVV codes, expiration dates and are often made of plastic with a magnetic stripe on the back.
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. Compare cards thoroughly and shop for the best prepaid card with as few fees as possible.
No credit check needed — People with low or no credit can establish responsible credit habits without taking a hit to their credit scores.
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.
More fees than debit cards — Debit cards typically charge overdraft, monthly and sometimes ATM fees. On the other hand, 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.
Prepaid cards provide several benefits to people who, for whatever reason, don’t have access to traditional bank accounts (unbanked people) or whose banking institutions don’t meet all of their banking needs (underbanked people). They’re safer to carry than cash and pose less risk of overspending than credit cards.
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:
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While Bankrate editors and writers evaluate a broad range of criteria to determine the best prepaid credit cards, weighted emphasis is placed on factors including:
