Posted on

Using a prepaid debit card can also be an option for securing a payday loan

Using a prepaid debit card can also be an option for securing a payday loan

Reloadable prepaid cards address the financial needs of some consumers, and usage is more common among unbanked households, especially in lower-income households, less-educated households, younger households, and some minority households (Figure). 12 Unbanked borrowers, as the word implies, do not have a traditional bank or credit union account at all. Under­banked consumers have a bank account but also use alternative financial services, such as payday loans. When using a prepaid debit card, the amount of the loan is deposited directly on the card and the borrower gives the lender the right to electronically deduct the full amount from their prepaid card when the payment is due. Continue reading Using a prepaid debit card can also be an option for securing a payday loan