What are some pros and cons of the BancorpSouth prepaid debit card?


Quick Answer

A prepaid debit card from BancorpSouth and other institutions controls spending in the sense that an individual only spends money that is loaded on the card, states Credit.com. On the other hand, a prepaid debit card may have expensive subscriptions for opening and retaining the account.

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Full Answer

Controlling spending helps save for long-term goals such as retirement or managing debt, explains Bankrate. Money is kept safe while travelling because the debit cards can be used overseas. A prepaid debit card also has an easy approval process, since there is no credit required. It can be used for online or phone purchases as well as accessing cash from ATM machines. It may be less expensive than check-cashing services.

BancorpSouth and other prepaid debit cards do not report payment history to the credit bureaus. Therefore, this type of card does not help an individual improve his credit. Prepaid cards cannot be used in situations where a deposit is needed, such as reserving hotel rooms and car rental agencies. Most prepaid debit cards have fees for loading money on the account or when using the card for purchases. A prepaid card tends to have fewer fraud and billing protections than credit cards. However, losses are limited with prepaid debit cards if a card is lost or stolen, states Bankrate.

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