In addition to credit cards, the financial services company Visa also offers prepaid cards. These prepaid cards function somewhat like a debit card linked to a checking account. A person is allowed to place money on the card and then make purchases with it at any place that Visa cards are accepted. However, unlike a credit card, a person cannot loan money with a prepaid card.
Prepaid Cards
A person is allowed to place money on his prepaid Visa card in a number of ways, including by depositing cash at select locations or transferring money from another account. However, unlike a checking account, a person cannot write checks against this account, nor can he deposit checks to it. He also cannot borrow money using the card, as as he could do with a credit card.
Loans
The only way that a person could theoretically use his prepaid Visa card to get a money loan is if he offered the card as collateral to a lender who was willing to lend him money based on the promise that it would be paid back in the future. However, few companies are willing to do this. Most payday loan companies, for example, require a person to have a checking account to borrow money.
Direct Deposit
A person is allowed to deposit money directly onto his prepaid Visa card, such as the wages from a job or from benefits provided by the government. Although providing proof that you are receiving a direct deposit may help convince a lender to loan you money -- this shows that you have a consistent source of it income -- it will not enable you to make loans against the card itself.
Other Types of Cards
While a person cannot loan money using a prepaid Visa, he may be able to apply and receive a Visa credit card through a bank or other financial institution. A Visa credit card allows a person access to a line of credit from which he draws money in the form of loans. The amount of money and the rate of interest he will pay on it typically do not depend on whether the person receives direct deposit.
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