Technology has changed the banking landscape so dramatically that some stores no longer accept cash. For many of us, direct deposit has become the default way to receive paychecks. Not to mention that some purchases can only be made with a credit or debit card. While having a debit card is at least becoming a necessity, many people don’t yet have a checking account or line of credit. This is where the RushCard comes in.
Fortunately, prepaid debit cards offer a way to use the card for transactions without linking the card to a bank account. Here, we’ll examine everything you need to know about RushCard, one of the most durable prepaid debit card options on the market, and how it sets it apart from the competition.
RushCard: What Is?
RushCard is a prepaid debit card; as you might expect by now, it’s also linked to a mobile app. As a Visa card, RushCard is widely accepted as a payment method. Although RushCards are not tied to a traditional bank account, they have some very powerful features that allow you to use them just like a bank-linked debit card. Convenience factors aside, RushCards are a safe bet; these prepaid cards are FDIC-insured against losses—Visa’s protections provide a safety net against potential fraud.
Like most prepaid cards, RushCards incur fees. For starters, it costs $9.95 to buy one, and once you make your first purchase, you’ll pay an additional $3.95. But that’s not all, the fees are over; you can choose between two different RushCard plans depending on your needs.
For $5.95 per month, you can use the card as many times as you want, or you can pay $1.00 per use of the card. For RushCard users who do not use the direct deposit feature, the monthly flat fee increases to $7.95 per month. Of course, these fees only cover the cost of using RushCard. Withdrawals and deposits have their own fees; a one-time withdrawal and deposit fee is never more than $5.95.
The RushCard app allows you to get funds on a check by taking a photo of the check. Instead of depositing money into a bank account, this process adds the value of the check to your RushCard balance. Another great benefit of the app? You can set up direct deposit to add your paycheck to your RushCard. Just like traditional credit cards, RushCards can also be used to pay bills automatically.
How to apply for RushCard
Apply for a RushCard? The process is simple and completely online. The site will ask for basic contact information, including your name, address, phone number and email address. You must also provide your date of birth and Social Security number when you first apply for a RushCard.
To reiterate, RushCard is a fee-based prepaid debit card; RushCard doesn’t lend money, so when people sign up or use their RushCards, companies make money. All of this means that no credit checks are required, and RushCard is less likely to reject applications from paying customers.
How to use RushCard
After applying for the card, order online. Next, choose a flat-rate plan or a pay-as-you-go plan. Before using the card, add value by cashing a check or paying cash at an ATM, convenience store, or other top-up location.
Once you’re all set up, just use the card like any traditional debit or credit card. Curious about your first deal? Check and top up your purchases with the RushCard mobile app. You can also view your account information, set up direct deposit, and use automatic bill pay through the product’s mobile app.
Advantages and disadvantages
RushCard enables you to access funds, deposit checks, receive direct deposit, and set up automatic bill payments, and provides most of the features associated with checking accounts or debit cards. It even claims to be more efficient, saying that direct-deposit funds arrive two days earlier than traditional checking accounts. This is a huge benefit for people whose credit or banking records do not allow them to have a traditional bank account.
For prepaid debit cards, RushCards are relatively easy to load and withdraw. Cards can be reloaded at checkouts at many major retailers, including Walmart, 7-Eleven and Dollar Tree. Additionally, you can withdraw and add money to any ATM in the RushCard network; some banks even offer RushCard withdrawals. Best of all, RushCard’s mobile app makes it easier to monitor transactions and cash checks.
What is the biggest disadvantage of using one of these cards? various fees. For almost every aspect of the card — top-ups, withdrawals, purchases — the fees can be a bit high, but compared to some banks, RushCard’s fees are still lower than the monthly fee for maintaining a checking account.
However, RushCards are great for people with bad credit or a banking history that limits their options. While the card has the powerful features these individuals need to manage their finances, the card does nothing to improve their banking or credit history. Because it’s not a loan, RushCard doesn’t report to credit bureaus, and since it’s not tied to a bank account, it doesn’t affect bank history.
What Makes Prepaid Debit Cards Different?
While credit cards allow you to spend money you don’t currently have, RushCards work like debit cards in this regard. That said, RushCard users must already have money before they can spend it. The main difference between a prepaid debit card and a traditional debit card is the source of funds for the card. Not sure if it’s right for you? You might want to compare the functionality of the RushCard to a traditional debit card.
