Writer: Mike Randall
Editor: Lillian Guevara-Castro
Reviewer: Ashley Fricker
Key Takeaways
I have evaluated numerous types of cards to find the ones that are best for reloading. Here are my findings:
-
GO2bank™: Best for earning cash back on certain purchases.
-
Greenlight – Debit Card For Kids: Best for children.
Credit cards make it super easy to buy a variety of goods and services without the hassle of carrying cash. There’s just something incredibly convenient about swiping a small piece of plastic to pay.
However, credit cards can also cause problems if you don’t carefully monitor your spending and budget. One alternative used by people who either can’t qualify for a credit card or choose not to use credit cards is to rely on a reloadable card — also known as a prepaid card.
While they’re often called reloadable credit cards, that’s not entirely accurate. These aren’t your typical credit cards; instead, they work more like prepaid debit cards. When you use one, you’re spending money you’ve personally loaded onto the card or funds you’ve received from sources like payroll or government benefits.
Continue reading to see our list of favorite reloadable cards, or skip ahead to the benefits of choosing a prepaid card for purchases.
Favorite Reloadable Cards
- Overdraft protection up to $300 with opt-in and eligible direct deposit*
- No monthly fees with eligible direct deposit, otherwise $5 per month
- Earn up to 7% cash back when you buy eGift Cards in the app
- Get your pay up to 2 days early - Get your government benefits up to 4 days early.*
- High-yield savings account, 4.50% APY paid quarterly on savings up to $5,000.*
*Terms and conditions apply. GO2bank™ cards are issued by Green Dot Bank, Member FDIC, pursuant to a license from Visa U.S.A., Inc. Visa is a registered trademark of Visa International Service Association. Overdraft fees may apply. Click Apply Now to learn more.
- Greenlight is a debit card for kids, managed by parents
- Parents set flexible controls and receive real-time alerts while kids monitor their balances, set goals, and learn how to manage money
- Feel secure knowing Greenlight blocks unsafe spending categories
- Receive Mastercard’s Zero Liability Protection
- Upload a photo of your choice to create a unique custom card
- Debit cards are FDIC-insured up to $250,000
- Easily turn your Greenlight card on or off and receive real-time spending notifications
- Earn points on swipes: Earn up to 7x the points on card swipes at over 14,000 participating merchants, then redeem them for cash back in your account.*
- Get paid up to 2 days faster with direct deposit*
- If you qualify, you can access up to $750 before payday with a paycheck advance
- Qualifying direct deposits receive fee-free overdrafts*
- No minimum balance fees, no overdraft fees, no bank transfer fees
- Access to more than 40,000 fee-free ATMs*
- *View product disclosures here.
- Waive your monthly fee when you direct deposit $500+ in previous monthly period. Otherwise, $5.94 a month.*
- Earn 3% cash back at Walmart.com, 2% cash back at Walmart fuel stations, & 1% cash back at Walmart stores, up to $75 each year.*
- Earn 2% interest rate on up to $1,000 balance in your savings account. Plus, get chances to win cash prizes each month!*
- Get peace of mind with three coverage levels, up to $300, for purchase transactions with opt-in & eligible direct deposit.*
*Please see site for full terms and conditions.
Additional Disclosure: Walmart MoneyCard® is a debit card offer.
- Manage and control your money on one convenient reloadable prepaid card
- Get paid up to 2 days faster with direct deposit
- No-fee cash withdrawals of up to $100 at ACE with qualifying Direct Deposit
- Earn Payback Rewards on qualifying purchases
- Choose from 3 card designs
- As a cardholder, you can open a Tiered Optional Savings Account. Balances up to $1,000.00 currently earn up to 5.00% annual percentage yield. No minimum balance required.
- Great for families who wish to store money on multiple prepaid cards linked together
- No risk of debt, overdraft, or hidden fees
- Retain parental visibility and control while empowering kids of all ages
- Separate funds into multiple purpose-driven accounts
- Alert parents and children about card activity and the remaining balance in real time
- A paid FamZoo subscription entitles you to use all of the active prepaid cards in your FamZoo family for as long as your subscription remains active. Adding family members and adding cards does not impact your subscription fee.
- Take your kid’s spending freedom to the next level with a BusyKid VISA® Prepaid Card. Eliminate concerns over having on-hand cash. It's easy to use, secure, and it teaches your kids how to manage money they can't see.
- Every family subscription comes with up to five cards (one per child).
- Cards are backed by the Visa® Zero liability policy and can be locked temporarily if misplaced.
- Given it’s backed by the trusted name of Visa®, the BusyKid Spend Card is widely accepted in stores and online
- BusyPay™ is an easy way for family or friends to instantly send money to a child’s BusyKid account
- Choose from a variety of card designs to find which fits your busy kid best
Reasons to Choose Prepaid Over Credit
There are many reasons people choose a reloadable prepaid card over a credit card. First, a prepaid card requires no credit check or other qualification.
Second, a prepaid card charges no interest and no late payment fees. Third, and perhaps most importantly, a prepaid card can function in many of the same ways as a bank account. This is an extremely appealing attribute for many.
So, are these cards really worth looking into? And more to the point, can they save people money?
It all depends on how you plan to use your reloadable or prepaid card. Some cards charge ATM fees, which can make them more expensive if you frequently withdraw cash. Others have no ATM fees but may charge monthly or deposit fees.
Still, others can be free of most fees altogether if you choose to direct deposit your payroll or benefits checks. A rare few of them may even pay you interest on the money you deposit in the card account, just like a savings account.
But if you’re interested in avoiding credit card interest fees, saving money on check-cashing fees, and still enjoying the benefits and convenience of a card, then a prepaid card may be right for you.
What to Keep In Mind When Evaluating Credit and Prepaid Cards
The main thing to keep in mind when considering a reloadable prepaid card is that these cards don’t appear on your credit report like a standard credit card does, which means they won’t help you build or rebuild your credit. So if that’s a priority for you, then a prepaid card may not be the best choice.
You can alternatively consider a secured credit card that functions similarly to a prepaid card in that you must deposit money to use the card. But the difference is that with a secured card, your cash deposit is the collateral necessary to open the line of credit — not what you get to spend. But you’ll receive your deposit back when you either close the account or are upgraded to an unsecured credit card.
Secured cards are generally reserved for people who have no credit or bad credit, which is why cash collateral is required. The card issuer will keep your deposit if you fail to make payments on the card.
Prepaid cards are not reported to the credit bureaus like credit cards are. A secured card will report your card activity to each credit bureau, which will then appear on your credit reports. With on-time payments and a low credit utilization ratio, you’ll be on your way to an improved credit score.
You can’t set up direct deposit with secured cards, though, so if you’re looking for more of a credit union or bank account alternative and just need the card to make purchases, a prepaid card can be a good choice.
Curb Overspending with a Reloadable Prepaid Card
Having a reloadable card that you can use just like a credit card can be a great way for many folks to manage their money. Reloadable cards can be a viable alternative to a checking account, helping to avoid check-cashing charges and other fees. Some of these cards even allow you to receive your payroll check a day or two early.
Prepaid cards offer the convenience of swipe-and-go purchasing, but won’t get you into debt like a credit card might. Many prepaid cards let you track your activity on a smartphone app, so you always know where your finances stand.
In that way, using a prepaid card can actually help you keep an eye on your spending patterns, and make you carefully consider your purchases. All good things when it comes to building positive financial habits.
Editorial Note: Our site content is not provided or commissioned by any credit card issuer(s). Opinions expressed on CardRates.com are the author's alone, not those of any credit card issuer, and have not been reviewed, approved, or otherwise endorsed by credit card issuers. Every reasonable effort has been made to maintain accurate information; however, all credit card offer details, including information about rewards, signup bonuses, introductory offers, and other terms and conditions, is presented without warranty. Clicking on any offer on CardRates.com will direct you to the issuer's website, where you can review the current terms and conditions of the offer.
About the Author
