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Prepaid Debit Cards and Other Banking Alternatives

Prepaid Debit Cards and Other Banking Alternatives

By blowing the whistle on Bank of America/Countrywide, I got blacklisted from the banking and insurance industries. Surviving outside the financial grid isn’t all that difficult though. Your financial options depend on your personal financial situation, needs, and resourcefulness. Some services run credit checks, and others hit you with fees.

Here’s a breakdown of your alternative banking options:

Cashing a Check

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Money Versability Lifehack

    If you need to cash a check, but you don’t have a bank account, you’re going to pay a fee. Places like Walmart and your local grocery store will cash a check for the lowest fees, but they do run background checks. If you owe money to a bank, you will be denied. Check cashing, Pay Day Loan, Title Advance, and other such places can be your only option if you need to cash the check in a pinch. The fees are hefty, though, so avoid these at all costs.

    Your best long term option is to re-enroll in school. Even if it’s just for one class, you can apply for financial aid. Also, your ability to get a student deposit account is much easier because schools partner with smaller lending institutions who are willing to pick up the tab for college students. Yes, you may pick up student loan debt, but it’s better that this money go toward your education than to a loan shark. These deposit accounts tend to have MasterCard and Visa branding. Often, these companies grow into banks and grandfather you into an account.

    If you’re lucky enough to be employed by a company that offers financial options, get an account open through them. Even if you’re blacklisted, you may be able to get an account this way. If you know someone who works at a bank, they’ll often be able to push your account application through, but rules change all the time. You can cash a check through a friend with a bank account, as long as they have enough money in their account to cover it.

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    Securing Direct Deposit

    If you need direct deposit, the above methods of obtaining a backend bank account are great options, but you’re not limited to these. Prepaid debit cards often have routing numbers to allow for deposits. Student loan deposit accounts have these, as well.

    Using Plastic

    money-and-case Versability Lifehack

      These days, a plastic card is easier to get than cash. Aside from the prepaid debit options listed above, you can also purchase prepaid debit cards branded with Visa, Mastercard, American Express, and more. Each has advantages and disadvantages, and it’s recommended to only use them for temporary purposes. If you have it longer than a month, you may be charged fees. There are also purchase fees you must worry about. Traveling internationally only compounds the fees. These cards are easy to use, however.

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      If you’re looking for a simple way to budget, gift cards are a great option. Look for gift cards to places you shop at regularly, and for a variety of needs (i.e Target, any grocery store or gas station, Amazon, etc). This way you can control your budget by loading the cards with specific amounts. Also, by keeping only the cards you need with you, you control impulse spending.

      Shopping Online

      If you’re tech-savvy, there are even more alternative banking options. Bitcoin and Litecoin have emerged as a digital alternative to currency. Both Amazon and PayPal have expanding deposit and spending options (PayPal’s options include a plastic card). Even Fiverr is getting in the game with their branded MasterCard deposit account.

      Google has their own Wallet program, and Facebook is looking for more ways to keep you on their web portal. It’s only a matter of time before both become robust banking alternatives. Apple and Microsoft won’t be far behind. By the time each of these companies rolls out a banking option, it’ll be obvious the “too big to fail” banking industry should have collapsed decades ago.

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      Paying Your Rent or Mortgage

      In order to feel comfortable with alternative banking solutions, you need to be sure it’ll pay your rent. Your landlord or lending institution may require a specific form of payment, so it’s best to familiarize yourself with all of the options above.

      Personally, I use PayPal, Amazon, Google, prepaid debit cards, and I have a student deposit account. Each has a use. You can still store money like a boss without a bank.

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      Last Updated on March 4, 2019

      How to Use Credit Cards While Staying Out of Debt

      How to Use Credit Cards While Staying Out of Debt

      Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

      I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

      Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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      Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

      Do Not Treat Credit Cards as Your Funding Sources

      Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

      I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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      I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

      If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

      Make Sure to Always Pay Off Balances in Full Each Month

      The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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      Using Credit Cards with Rewards

      Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

      You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

      I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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      So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

      What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

      Featured photo credit: Artem Bali via unsplash.com

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