Prepaid debit cards are relatively new on the financial scene but they’re making a big splash. Several companies now make and market these little darlings and even the big banks are trying to get in on the action. The reason they’re becoming more and more popular is very simple – they work.

As a financial tool, reloadable prepaid debit cards were first created for people who had little or no relationship with a bank. Either these folks simply had no desire to do business with a bank or they had enough credit blemishes on their records for banks to steer clear of them. Either way, this “underbanked” population was forced to conduct their business on a cash-and-carry basis with no access to any real financial tools like credit cards or checking accounts. Reloadable debit cards helped fill that void.

But the biggest selling point – the one that really got prepaid cards off the mark – was their easy access. You see, unlike credit cards, prepaid debit cards require absolutely no credit checks. That’s right, no long forms to fill out and no credit scores or reports to check. All you basically have to have is proper identification and you can have a card. It’s extremely easy; almost everyone qualifies for a prepaid debit card.

The cards themselves can be used everywhere credit cards are accepted – in stores, on the Internet, over the phone, and at ATMs. That means people who never had access to plastic before, now have a whole new set of payment options. And they’re safer options too.

You see, prepaid debit cards help you protect your money much better than credit cards; that’s because prepaid cards don’t run on credit. Your general, run-of-the-mill credit card allows you to spend money you haven’t even earned yet. That’s a financially dangerous proposition which many people have fallen prey to. How many people do you know who’ve run up huge balances on their cards and pay fat minimum payments each month? Probably more than a few – you might even be one of them. That’s because credit cards let you spend more than you actually have.

Prepaid debit cards on the other hand run on money you do have – not money you’ve yet to earn. That means you can never over-spend with them and never dig yourself into a financial hole. So, in the long run you’ll actually save money because you’ll never pay a dime of interest.

So there you have it. Prepaid debit cards fill a need for a lot of people who’ve never had access to many of the mainstream payment options. They also are extremely easy to get. Then, when you top it off with the fact that they help you spend and manage your money better than credit cards, you have a total winning combination. That’s why prepaid debit cards are ending up in so many people’s wallets.