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Cash Advances Are Still a Pain, but a Card Loan with a Credit Card Loan? Perhaps Less So

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Cash Advances Still Sting However, what about A Card Loan with a Credit Card Loan? Maybe Less So

Alternatives to borrowing from your limitdepending on whether your card provides the option to do so -- could be less expensive than using your card at an ATM to get quick cash.

by Sara Rathner Senior Writer/Spokesperson | Travel rewards, credit cards, debt payment Sara Rathner is a NerdWallet expert on credit and travel cards. She has been featured in the "Today" show as well as CNBC's "Nightly Business Report," as well as being quoted by The New York Times, The Washington Post, The Wall Street Journal, Yahoo Finance, Time, Reuters, NBC News, Business Insider and MarketWatch. Before joining NerdWallet, Sara worked at The Motley Fool for nearly 10 years. She was also an independent personal finance writer and paraplanner and has a bachelor's education in Journalism at Northwestern University.

Updated February 7, 2023 at 6:43AM PST.

Written by Kenley Young, Assigning Editor Credit scores, credit cards Kenley Young directs daily credit cards coverage for NerdWallet. Prior to that, he worked as a homepage editor and digital content producer for Fox Sports, and before that , a front page editor for Yahoo. He has decades of experience in both digital and print media. This includes periods as the chief of the copy desk, a wire editor and an editor of the metro at the McClatchy Newspaper chain.

The majority or all of the products we feature come from our partners who compensate us. This impacts the types of products we feature and where and how the product is displayed on the page. But, it doesn't influence our opinions. Our opinions are our own. Here is a list of and .

A LOT LIKE THIS

When you lack the money on your bank account to deal with an unexpected expense, a is one way to quickly access needed funds -- but there are a few major disadvantages. You'll be responsible on cash-advance and ATM charges, as well as interest that will begin accruing as soon as you receive the cash.

Then there's the interest. According to the data of the Federal Reserve of St. Louis, average APRs among credit cards with interest rates reached 20.4% in November 2022. This is already quite high, and in many cases the interest rates for cash advances are even higher than that.

That is to say, that cash advance is going to cost you.

But, you could have cheaper optionswith credit card loan programs that let you take advantage of your existing credit limit. This is basically what you get when you make a request for a conventional cash advance. But unlike a cash advance, these newer loan programs offer a number of advantages:

A fixed interest rate for the duration of the loan.

There is no separate loan application or credit checks are required.

In many cases, there are no charges, beyond your interest payments (or any late payment that you might make).

A transparent process that lets you know the choices you're eligible for , as well as what the monthly price of each one would be.

New ways to use credit to repay your loan

In the world of major lenders, they both Chase and Citi offer these types of loans to qualifying cardholders. You can find out what you could possibly qualify for through logging in to your account online, or using the Chase or Citi apps.

My Chase Loan

allows you to borrow at least 500 dollars. You'll have the choice of a variety of payment plans with different terms. For instance, you may be able to choose something like a six-month or 12-month plan, which could be with a lower APR (think single digits) than your card's ongoing variable rate for purchases. (Your rate and conditions will vary based the creditworthiness of your.) Also, you'll be able to see the amount of your monthly payments will be for every loan option. Your loan amount will add to the credit card minimum monthly payment until you've paid it off. There's no penalty for if you opt to pay off your loan in advance. Conditions apply.

Citi Flex Loan

A is similar to borrowing a minimum of $500 with a fixed rate for a predetermined period of time. You'll be able choose from loans with different amounts and lengths. You'll also see what your monthly payment will be in accordance with the terms you choose. The payment will be made with your minimum monthly credit card payment every month. Terms apply.

Beyond the scope of these loan programs offered by major companies, you might have alternative options. For example, hybrid offerings from a startup called Upgrade can be used to purchase items, just as you would do with a traditional credit card, however the bill is paid in fixed installments at the same rate similar to the personal loan. You can also borrow against your credit limit by asking for cash to be deposited in your account. APRs and terms vary, but it may still be less costly than a cash advance.

Possible drawbacks

Both loan programs allow quick access to cash with a lesser cost than cash advances, but there can be negatives

You don't get cash in hand immediately. If you have a Chase Loan the loaned money could take one to two business days to be directly transferred into your account. Citi Flex Loans can also be accessed via direct deposits which can be as quick as a working day or a check that is mailed that takes however long the mailer takes.

Interest rates may not be as competitive as personal loans. Based on the type of loan you are eligible for, you might be eligible for lower rates on other types of loans (though for personal loan it is necessary to make an application and pass the credit screening). If you've got a bit more time to look around and compare rates, it's worthwhile to consider other ways you can access the funds you require.

You'll still pay interest. If you require cash to make a purchase in the near future you can choose other payment options that do not charge fees, although you might be subject to charges.

Other options to be considered

If you've got expensive purchase coming up There are ways you can use credit cards to hold off interest payments or split up payments:

A similar plan with an account on your credit card like My Chase Plan or Citi Flex Pay -- allows you to divide a bigger cost into monthly installments which are added onto the credit card bill. With Chase, you'll pay an annual fee that is fixed for the plan, while with Citi's you'll pay interest. Many other major issuers offer various versions that includes these types of plans. But whether you opt into an installment plan through your credit card or through a third-party buy now, pay later, you must exercise caution. A report issued in September 2022 from the Consumer Financial Protection Bureau identifies costly risks associated with these plans, which include the risk of spending more and the chance of being unable to make payments if you stack multiple loans simultaneously.

A credit card that offers a 0% interest promotion for new purchases could give you a full year according to the card, to pay down the balance on a debt-free basis. But be aware that if have any remaining debt when the promotion expires and you're charged the card's usual interest rate.

About the author: Sara Rathner is a NerdWallet travel and credit cards expert. She has appeared as a guest on "Today" program, Nasdaq and CNBC's "Nightly Business Report."

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Calculator for Auto Down Payment

The larger the on your vehicle, the better rates you can expect to get. Utilize Bankrate's auto-down payment calculator to estimate the amount you could save on your purchase by paying cash, trade-in or both. What kind of down payment do you need to make for a car? A down payment that is between 10 to 20 percent of the price of the vehicle is the standard recommendation. If you are able to afford an additional down payment, you'll save even more money on interest payments over the life of your loan. When you lower the amount you finance in the beginning, you can save some before you start the car price. For drivers with poor credit, a down payment can help in getting approval and obtaining competitive rates. It is an excellent option to prove to prospective lenders your commitment to the purchase and paying off the loan off. If you still can't get the best rate at the time you purchase with a down payment you might be able to negotiate later negotiate a better rate. In either case, . By making sure the vehicle is suitable, not only the price, you'll save in the long run. What to consider when choosing an down payment is the amount you deposit upfront to a vehicle purchase. It can comprise cash or a trade-in. The more money you can pay for, the better off you will be. Take into consideration the differentiators between the two vehicles when deciding the amount to deposit. Down payment on a new vehicle is depreciating at a much faster rate than if you buy used. A large down payment of 20 percent or more could help safeguard against that loss of value. However, the fact that you are able to pay cash in advance doesn't mean you need to sign off on a vehicle that you can't really . Be sure that your monthly payments including insurance, fuel and maintenance costs are within your monthly budget. Down payment on a used car A , however is a lower down amount. Since the value of a used vehicle is already undergoing the majority of its depreciation, the down payment should be a minimum that is 10 percent. Bankrate suggests that if not are financially stable or have an need for a new vehicle It might be worthwhile to save up for an initial down payment prior to purchasing your vehicle. Make a budget using the 10-20% amount in mind prior to setting your sights on a .

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Paying Bills Is a Grind for 43 percent of Americans, CFPB Finds

Advertiser disclosure You're our first priority. Each time. We believe everyone should be able to make sound financial decisions without hesitation. And while our site does not feature every business or financial product that is available in the marketplace We're pleased that the guidance we offer, the information we provide and the tools we develop are independent, objective, straightforward -- and completely free. How do we make money? Our partners pay us. This may influence which products we review and write about (and where they are featured on the site), but it does not affect our recommendations or advice, which are grounded in thousands of hours of research. Our partners do not promise us favorable review of their services or products. .

Paying Bills Is a Grind for 43% of Americans, CFPB Finds

by Jeanne Lee Jeanne is a former NerdWallet writer focusing on debt, credit and loans. She has covered financial topics for more than 20 years, and has also worked at Fortune as well as Money magazines.

Published Sep 27, 2017 2:26PM PDT

Written by Des Toups Lead Assigning Editor | Student loans, repaying college debt, and paying for college Des Toups is a former lead assigning editor who supported both the auto loans and automobile loans teams. He has years of experience in personal finance journalism, exploring everything from car insurance to bankruptcy to couponing and side hustles.

A majority of the items featured on this page are provided by our partners who pay us. This impacts the types of products we feature as well as the place and way the product is featured on the page. However, this doesn't affect our assessments. Our views are entirely ours. Here is a list of and .

More than 40 percent of U.S. adults struggle to survive According to a recent report by the Consumer Financial Protection Bureau.

It discovered that the financial wellbeing that of U.S. adults varies widely in the form of savings, which is the best indicator of wellness, even more than education or income. People who had the ability to manage emergencies were in good health.

The agency used a large national survey to measure the financial health of its citizens, which that it defines as

feeling in control over finances

being capable of taking the financial shocks

getting on track to meet financial goals,

having the freedom to make choices that make life enjoyable

Keep track of your spending categories

Check out what you've put into your accounts, upcoming bills and see how much you're on track to save.

The survey, which was conducted in the latter half of 2016, was conducted in the latter half of 2016, and asked Americans about their earnings, savings and attitudes toward money. The results, according to the Financial Well-Being in America report which shows that 43 percent of respondents struggled to pay bills and 34% have experienced issues with money in the past year, including being unable to eat or not being able to pay for medical care.

A score for the financial health of consumers

The survey respondents also received the "financial wellbeing score" between 0 and 100. The median scores was 55.

The report noted that around 1/3 of those were between 51 and sixty, another third scored higher than that range, and the rest were lower than it.

Scores of 50 or less were more likely to be being in financial hardship, whereas those with scores of over 61 are more likely to be able to meet their financial needs.

Age-related disparities have been found. Seniors ages 65 and older had the highest scores approximately 10 points better than the young adults of the 18-34 age range which scored the lowest.

>>MORE:

A safety net is vital.

The CFPB findings highlight the fact that a safety net made of savings has a strong impact on the stability of financial markets. Adults with less than $250 savings had average scores of 41. Those with savings of at least $5,000 scored well above average.

The amount of the respondent's financial cushion, as the CFPB noted was the most reliable indicator of well-being, even more than education or income.

For the majority of people, the cushion for financial security begins by establishing these fundamentals:

Even as little as $250 at the bank could prevent you from entering in debt for each unexpected cost.

It's easier to fill your emergency fund if are aware of how much money is coming in and you have an idea of where it'll go.

Pick a strategy that will assist you in making a dent in the amount you owe. When you pay less creditors, you will be able to put more money into creating an investment plan for your future financial security.

After you've completed those three tasks, you'll be capable of setting long-term goals, like saving for retirement.

Factors that affect financial wellbeing

Here are a few factors which significantly enhanced the financial health for the general population The CFPB found:

Having a savings cushion

Knowing the financial aspects

Confident about your money

Saving money regularly

(image: https://i.pinimg.com/736x/bb/1e/20/bb1e2091ee132cfe941c72e5ef417a14--payday-advance-loans-cash-advance-online.jpg)However, these experiences had strong negative associations for financial health:

Having been denied credit

Having used payday loans, pawn loans or auto title loans

Being contacted by an unidentified debt collector

The survey found no differences in financial wellbeing due to gender or location. There were minor differences due to belonging to a certain racial or ethnic group, with non-Hispanic whites reporting greater levels of financial well-being than the other groups.

More from NerdWallet

The author's bio: Jeanne Lee is former personal finance writer for NerdWallet. She has also written for Fortune and Money magazines.

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Car buying online vs. at a dealership Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by providing you with interactive financial calculators and tools that provide objective and original content. This allows you to conduct your own research and compare information for free to help you make financial decisions with confidence. Bankrate has agreements with issuers such as, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The products that are featured on this site come from companies who pay us. This compensation could affect how and when products are featured on the site, such as, for example, the sequence in which they appear within the listing categories, except where prohibited by law. Our mortgage home equity, mortgage and other products for home loans. But this compensation does have no impact on the information we provide, or the reviews that you see on this site. We do not contain the universe of companies or financial deals that could be open to you.

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6 min read Published October 28, 2022

Written by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ways and pitfalls of using loans to buy a car.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since late 2021. They are dedicated to helping readers gain the confidence to manage their finances by providing concise, well-studied and well-researched content that breaks down otherwise complex topics into digestible chunks.

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At Bankrate we aim to help you make smarter financial decisions. We adhere to the highest standards of ethical standards ,

this post may contain the mention of products made by our partners. Here's how we earn our money .

The promise of the Bankrate promise

Founded in 1976, Bankrate has a proven track experience of helping customers make informed financial decisions.

We've earned this name for more than 40 years by simplifying the process of financial decision-making

process and giving people confidence in which actions to follow next. process that is rigorous and precise.

so you can trust you can trust us to put your needs first. All of our content is authored with and edited

They ensure that what we write ensures that everything we publish is accurate, objective and reliable. We have a team of loans reporter and editor are focused on the things that consumers care about the most -- the various kinds of lending options, the best rates, the most reliable lenders, the best ways to pay off debt and many more, so you can feel confident when making a decision about your money.

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Bankrate has a strict policy and rigorous policy, so you can rest assured that we'll put your needs first. Our award-winning editors and journalists provide honest and trustworthy information to aid you in making the best financial decisions. The key principles We respect your confidence. Our mission is to offer readers reliable and honest information. We have established editorial standards to ensure that happens. Our editors and reporters rigorously verify the truthfulness of content in order to make sure that the information you're reading is correct. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive compensation directly from our advertisers. Editorial Independence Bankrate's editorial staff writes in the name of YOU - the reader. Our goal is to give you the most accurate advice to assist you in making smart financial decisions for your personal finances. We follow strict guidelines to ensure that our editorial content is not affected by advertisements. Our editorial team is not paid direct compensation from advertisers, and our content is fact-checked to ensure accuracy. So, whether you're looking at an article or review, you can trust that you're getting reliable and reliable information.

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You have money questions. Bankrate has answers. Our experts have been helping you manage your finances for more than four years. We strive to continuously provide our readers with the professional advice and tools required to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our information is trustworthy and precise. Our award-winning editors and reporters provide honest and trustworthy content that will help you make the right financial decisions. Our content produced by our editorial staff is factual, objective and is not influenced by our advertisers. We're honest regarding how we're able to bring quality information, competitive rates and useful tools for you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for placement of sponsored products and, services, or by you clicking on certain hyperlinks on our website. This compensation could influence the manner, place and in what order items appear within listing categories in the event that they are not permitted by law. This is the case for our mortgage, home equity and other home loan products. Other elements, such as our own website rules and whether a product is available in your area or at your own personal credit score can also impact how and where products appear on this website. Although we try to offer the most diverse selection of products, Bankrate does not include specific information on every credit or financial product or service.

Should I buy my next car online or at an auto dealer?

It depends on the type of experience you like. If you enjoy personal communication, dealerships are the preferred option. If you prefer to make purchases at your own convenience, stick to shopping online.

Before, purchasing a car required a trip to your local dealership to pick your next set of wheels from what was available on the lot. Today, drivers can purchase cars from the comfort of home -- and in some cases even get them delivered. Both options have benefits and drawbacks. Shopping online is convenient, while dealerships allow for negotiations. Think about which one is the best fit for your requirements prior to beginning your search. Buying a car online is different from. dealerships online

Traditional dealership

Benefits

* More vehicle options Easy to compare cars Fast and responsive customer service

* Prices that are more flexible * Manufacturer incentives * Expert guidance

Disadvantages

* No test drive * No negotiation * Potential extra fees

* Longer commitment to time More difficult to leave Fewer vehicle options

Bravo...

The driver who enjoys the convenience of shopping at home and would prefer to avoid any sales representatives.

A driver who excels in negotiations , and would prefer the personal connection to work in a dealership.

What to look out for

If you buy a car sight-unseen, it can be an the risk of a higher risk. Do some research on models to ensure you're getting a good vehicle.

and marked-up financing can undo all of your hard negotiation. Additional pressure can also push you into a vehicle that doesn't meet your needs.

Buying a car online In the midst of the pandemic, many local dealers began to offer options. It gave customers the chance to see the cars available within the region before heading out for the dealership. While this remains a great option to shop on the internet, it does necessitate a visit to a dealer. Alternatively, other ways to shop that are more seamless have gained popularity since local dealerships have shifted to online shopping due to the sheer need. Online sellers like , CarMax, Shift and -to name some allow customers to shop and even arrange delivery or pickup all from home. Benefits of buying a car online The main benefits of buying the next vehicle online come in the form of ease of buying and the direct support online. There are more options for vehicles at local dealerships. are restricted to what is available in the area as well as with supply chain problems, the selection is even more limited. The online marketplace gives you a greater selection of cars to shop from. You can also search for specific models, makes and prices -- without the stress of a salesperson who is constantly over your shoulder. Easier to compare vehicles With more vehicles available and a greater variety of options, comparison is the way to . Whatever notes you keep, it is hard to really compare two vehicles on a dealer lot one-to-one. On the internet, you can evaluate the features and accompanying prices of the various vehicles you have your eye on. Customer service that is attentive when shopping at home eliminates the need for face-to-face assistance, shopping online still allows for great customer service, based on the company you work with. Many online sellers, like Carvana such as Carvana, offer a chat function which allows drivers to ask questions specific to the buying process. The disadvantages of buying cars online Although buying online a car has the convenience and ease of shopping from your home, there are significant negatives to take into consideration. No test drive When shopping online, you will not be able to see the car in person until after you've signed on the line. In the absence of a test drive, you could buy a car that doesn't fit your needs. If you're shopping online for a car be sure to look for dealers that have a return option -- like seven-day return time -- so you don't have to buy an unsuitable car. No negotiations Most online vehicle platforms will not negotiate price quotes. If you're tired of , this can be an advantage. But it also means that you'll not have any flexibility on price. When shopping at a traditional dealer it is likely that you will be able to cut the price through negotiation, but when you shop on the internet, the advertised price represents the cost you will pay. There are a variety of fees to consider. While some fees are unavoidable when it comes to car buying, shopping online tends to carry a few additional costs. If you choose to have your car delivered, for example, you will have to pay an additional cost, upwards of 1,000 or more, for online marketplaces such as Vroom as well as other handling fees which are usually avoided when working with an agent. If you are buying a vehicle at an auto dealership. Going to your local dealer is the best choice when it comes time to buy a brand new or used vehicle. Dealerships specialize in certain vehicle price, brands, and models. But these establishments can carry bad reputations, so it is wise to research before making a decision. Buying a car today also requires some due to the current price of new cars due to supply chain issues as well as . Which, unfortunately, aren't likely to return to normal prices until the spring of 2023. However it is important to be prepared to spend some more when you buy an entirely new vehicle directly from dealers. Benefits of buying a vehicle from a dealer Choosing the traditional route provides drivers with the excitement of getting the best deal and the expertise of a salesperson. Flexible prices. If the price different from what you see advertised on the vehicle window, it's possible that if you negotiate well, you can cut down the sticker price. This isn't a benefit for those who shop at home. Manufacturer incentives Dealerships sometimes offer buyers promotional finance options or rebates additional to those offered by the manufacturer to enhance the deal of buying from them. Although not all options are identical, many of them can be used to boost the amount of your down payment or even provide you . Expert advice Nothing compares to the personal guidance that an expert salesperson with experience in the market can offer. This is particularly true when you're looking into different options for your vehicle like . With all the bells and whistles that vehicles now come with, it could be beneficial to have someone who can guide through the procedure. Disadvantages to buying a car at a dealership The time required to purchase the car could be an enormous time commitment and cause headaches for cautious buyers Consider the disadvantages of buying from a dealership. More time commitment when purchasing online, you can close your computer and get your car delivered in the next day, but purchasing from dealerships isn't always effortless. It is necessary to carve some time to drive to the dealership for a walk-through, look around at vehicle options and then sit down with an agent. The entire process is stressful and often leave you without the car you've always wanted. It is more difficult to leave the dealership salespeople are available to help you in your car-buying journey and having someone at your side during the whole process isn't easy when you're in a dilemma. It also makes the decision to walk away from a bargain especially hard. If you're not a strict shopper who is prepared to not say no, you should consider the ease of the ability to shut down the website and "walk away" whenever you shop online. A smaller selection of vehicles dealerships offer much fewer vehicles than online sellers. Commonly, dealerships sell one specific vehicle brand. For instance, if you've got your eyes at an Nissan but only have an Ford dealer nearby buying online is the best way to explore more possibilities. What can you do to get the most bargain no matter where you shop. Regardless of where you intend to purchase your next car there are some fundamental guidelines to remember when it comes to driving to the most affordable price you can get. Stick to your budget. Cost should be your top priority when you shop, and take advantage of a car loan to get a better understanding of your monthly expenses. In addition, you should take into consideration the total cost of ownershipmaintenance, and other costs. Apply to be eligible for loan prequalification. Find lenders who offer , this is an excellent method to secure your monthly payments. Also, make sure that you're able to afford your vehicle prior to signing. Shop for the entire amount, not just the monthly installment. The , the lower your monthly installment may be, but this is not always the best choice because you might be paying more in the end. Understand your credit score. Your score is the most important factor in your ability to pay back your loan. Understanding it can put you in better position to determine if you are getting fair rates. Take a look. Shopping around is not only essential when it comes to vehicles but also key in obtaining the ideal loan. It is advised to do this prior to signing a contract. Utilize cars buying apps. Make the most of technology by using , on and off the lot of the dealer. These apps can enable you to evaluate vehicles and get real-time price estimates. Tips for Bankrate

If you're looking to get the most desirable of both think about contacting your local dealership over email ahead of time. Mention what you're interested in, your purchase timeline and inquire about any incentives that are available.

The bottom line is a satisfying, stress-free experience, so the choice between an online store or dealership is based on the best fit for your requirements. If you prefer the guidance from a trusted sales rep, then take the traditional route. But if the thought of dealerships creates more anxiety than excitement, think about the seamless online process.

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Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers with the ways and pitfalls of taking out loans to purchase the car they want.

Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are dedicated to helping their readers feel confident to manage their finances through providing clear, well-researched data that is broken down complex subjects into digestible pieces.

Auto loans editor

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Debt Management Plans: Choose the Right One for You

Advertiser disclosure You're our first priority. Every time. We believe that everyone should be able to make sound financial decisions with confidence. And while our site doesn't feature every company or financial product in the marketplace, we're proud of the guidance we provide and the information we offer and the tools we develop are impartial, independent easy to use and cost-free. So how do we earn money? Our partners pay us. This may influence which products we write about (and where those products appear on our website) however it doesn't affect our advice or suggestions which are based on thousands of hours of study. Our partners cannot pay us to guarantee favorable ratings of their goods or services. .

Debt Management Plans: Choose the Right One for You

Find out about different debt management plans' services and costs to determine the best fit.

by Sean Pyles Senior Writer | Personal financial and debt Sean Pyles leads podcasting at NerdWallet as the host and producer of the NerdWallet's "Smart Money" podcast. In "Smart Money" Sean talks with Nerds from NerdWallet's NerdWallet Content team to answer the questions of listeners about their personal finances. With a focus on shrewd and practical money tips, Sean provides real-world guidance that will help consumers improve the financial situation of their lives. In addition to answering listeners' financial concerns on "Smart Money," Sean also interviews guests outside of NerdWallet and produces special segments on topics such as the racial gap in wealth as well as how to get started investing and the history of college loans.

Before Sean took over podcasting for NerdWallet the company, he also wrote about topics concerning consumer debt. His work has appeared in USA Today, The New York Times as well as other publications. When when he's not writing about personal finances, Sean can be found working in his garden, taking walks, or taking his dog on long walks. Sean is located within Ocean Shores, Washington.

Updated Aug 17, 2021 9:47PM PDT

Edited by Kathy Hinson Lead Assigning Editor Personal financial, credit scoring, debt and money management Kathy Hinson leads the Core Personal Finance team at NerdWallet. Previously, she spent 18 years at The Oregonian in Portland in roles including copy desk chief and team editor and designer. Prior experience includes news and copy editing for a variety of Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in journalism and mass communications in Iowa's University of Iowa.

A majority of the products featured here are from our partners, who pay us. This influences which products we review as well as the place and way the product appears on a page. But, it doesn't affect our assessments. Our opinions are our own. Here's a list of and .

Feeling overwhelmed by your debt? A debt management program could be the answer.

The debt payoff tool will put you in a position to pay off debts -- typically from credit cards in the course of three or five years. With the help of a DMP the debts of several creditors are put into one payment and creditors reduce the interest rate. In exchange, you agree to a payment plan that usually lasts between three and five years. Be aware that interest rate reductions are standardized across credit counseling agencies that are based on your creditors' guidelines and your budget.

Here's a review of debt management plans at some major non-profit .

Agency / availability

Average fees

It is available in all 50 US states.

$31 startup fee

$20 monthly fee

Available in all states except Minnesota

A start-up cost of $42

$30 monthly fee

It is available in all 50 US states as well as Puerto Rico

$24 startup fee

$28 monthly fee

It is available in all 50 US states.

$35 startup fee

$29 monthly fee

In 50 States

$35 startup fee

$24 monthly fee

Debt management plans: Pros and pros and

Pros:

Can cut your interest rate by more than half.

Aids in paying off debt faster instead of making it your own.

Consolidates several debts into one installment.

Cons:

This is typically used to pay intended for debts incurred through credit cards; is not suitable to pay for student loans as well as medical debts or tax obligations.

The plan lasts between three and five years and you're generally unable to make use of credit cards or obtain new credit lines while on the plan.

In the event of a missed payment, it could derail the plan and end your interest rate reductions.

It's debt-crushing time

Join the link to sign up and track everything from cards to mortgages all in one location.

Is a debt management plan suitable for you?

DMPs aren't for everyone. Depending on the agency, just 10 20 up to 20 percent of customers are able to avail this option for debt relief. Of those who choose to, approximately 50% to 70% complete the plan, depending on the year and the way the agency records the completions.

It is possible to think about an DMP If:

Your unsecured debt like credit cards, ranges from 15% and 39% of your annual income.

You have a steady income and think you could repay your debt in five years, if you had an interest rate that was lower.

It is possible to live without opening up new credit lines when you're using the plan.

Alternatives to a debt management strategy

DMPs may not be the best option for you . Troublesome debts from student loans and medical expenses are not covered by these plans. Other optionsinclude:

If your debt problem is less than 15 percent of your income, you could take the DIY method using the method.

A , if you've got sufficient credit to qualify, can also gather the debts of several creditors into one with an interest rate that is lower. You have control over how long the loan is and retain your ability to open additional credit lines.

may be better should your debt amount be more than 40 percent of your income, and you have no option to pay the debt off in five years. The debt-relief tool can rapidly give you a new start, and consumers are able to start to improve in as little as six months.

What you need to know

If you think that a DMP may be your most effective option for debt relief, you should start by . Consider:

Accreditation and certification: Search for an agency which is a member of the or the . They require agencies to be accredited by an independent organization as well as both require certification as well as an established standard of professionalism among counselors.

Access: Consider how you'd prefer to receive services: via telephone, in person or online.

Cost: Fees vary by agency and state that you reside in, as well as your financial situation. Before you sign up, verify how much you'll have to pay each month towards your debt and fees.

The author's bio: Sean Pyles is the executive producer and host of NerdWallet's Smart Money podcast. His writing has been featured on The New York Times, USA Today and elsewhere.

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Five Things You Should Know About Varo Credit Card Varo Credit Card

Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able make financial decisions without hesitation. And while our site doesn't include every financial or company product that is available, we're proud that the guidance we offer as well as the advice we provide and the tools we create are independent, objective, straightforward -- and cost-free. How do we earn money? Our partners pay us. This can influence the products we write about (and the places they are featured on our site), but it in no way affects our suggestions or recommendations that are based on hundreds of hours of research. Our partners do not be paid to ensure positive ratings of their goods or services. .

5 Things You Need to Know About Varo's Credit Card Varo Credit Card

It promotes responsible credit usage and also keeps the penalties light should you make a mistake down the road, that's very difficult to do.

By Jae Bratton Credit cards Jae Bratton works as a journalist for the credit cards department at NerdWallet. She holds a bachelor's degree in English from Wake Forest University and a master's in English from University of North Carolina at Greensboro. Before she began writing for NerdWallet, Jae spent 13 years in teaching English and journalism. Her writing has appeared in newspapers, blogs and an academic magazine. Jae is from North Carolina.

Updated February 10, 2023, 10:19 AM PST

Written by Kenley Young, Assigning Editor Credit score, credit cards Kenley Young oversees the daily coverage of credit cards for NerdWallet. Previously, he was a homepage editor and digital content producer for Fox Sports, and before that , a front page editor for Yahoo. He has a wealth of experience in both digital and print media, with stints as the chief of the copy desk as well as a wire editor as well as a metro editor of McClatchy. McClatchy newspaper chain.

The majority or all of the items featured on this page come from our partners who pay us. This influences which products we write about and where and how the product is featured on a page. However, this does not influence our evaluations. Our opinions are entirely our own. Here is a list of and .

A LOT LIKE THIS

The Varo Believe Secured Credit Card is issued by the internet-based bank Varo It shares many of the same characteristics to other cards designed for those who wish to improve or build their credit. The closest cousin could be the . Like that card -- designed for beginners -- the Varo credit card doesn't have an annual percent rate or APR, and has no annual fee , or minimum security deposit, It also does not perform an invasive credit screening when you apply. These features could help you save money and keep the possibility of losing points from your credit score, which usually occurs following a .

Varo Believe Secured Credit Card Varo Believe Secured Credit Card is designed to guard against overspending and missed or late payments, and it's even possible to earn rewards. However, the security measures built into the card may appear limiting and too much for certain.

There are 5 things you need to be aware of about the Varo credit card.

>> MORE:

1. You need a Varo bank account to get the Varo credit card

There's no charge for setting the Varo bank account, but it's still a hurdle you'll need to cross. There's no security deposit needed to be used for the Varo credit card, you're only eligible to receive one when your Varo account has had direct deposits that are at least $500 in the last 90 days. Deposits from an employer or from the government count; transfers from peer-to-peer apps such as Venmo don't.

If your Varo bank account meets these specifications, you'll receive an invitation to sign up for the Varo Believe Secured Credit Card on the Varo Bank app.

>> MORE:

2. You can set yourself your personal credit limit to a point

In order to use this Varo Believe Secured Credit Card You'll need transfer money out of your Varo bank account to your Varo Believe secured account, which can only be done in your Varo app. The balance in the secured account becomes the limit of your credit.

In contrast to a typical credit card however, the Varo credit card imposes spending limits. You'll be restricted to $2,500 per day for purchases, and $1,000 per month for cash advances. The total of purchases and cash advances can't exceed $10,000 per billing cycle.

One big purchase, such as new furniture, can increase your limit of spending and force you to use another payment method if you needed to buy something else the same day.

3. Credit card transactions are almost foolproof

The balance of the Varo Believe secured account is your credit limit, but it's also the funding source for credit card payments. To ensure that you always have enough cash to cover your monthly bills in full, Varo automatically deducts the amount of any credit card transactions from the balance of the secure account. This way, it's not possible to overspend with the Varo credit card. Varo also locks your card if you miss an installment and will not allow access until the balance is paid off.

To ensure timely payments, Varo offers a "SafePay" option. When SafePay disabled, the balances are instantly paid in full at end of the billing cycle.

Varo credit card reports to all three major bureaus. Varo credit card provides information to all three major U.S. credit bureaus. This means that these steps will aid cardholders in building or fixing credit histories as they reward the payment of the credit card balance, and . However, such hand-holding is not typically available on traditional unsecured credit cards. If and when you upgrade from the Varo Believe Secured Credit Card to a standard credit card, know that you'll have to be more careful about paying off the monthly bills. (The secured card offers the only card Varo offers, so there's no option to upgrade within its portfolio.)

>> MORE:

4. The APR is 0%

If you fail to make a credit card payment, your balance will not grow due to interest because the APR for this Varo Believe Secured Credit Card is zero percent. That's an incredibly rare, potentially money-saving perk and one of the highlights for this particular card.

But again, it's not the way traditional credit cards operate. When you're ready to take an upgrade from the Varo credit card be sure to know the new card's APR.

>> MORE:

5. You can earn cash back on select purchases

The Varo Believe Secured Credit Card offers money back through two different ways including online offers and offers linked to cards. Varo's online offers -- similar to a with a traditional credit card offer cash back for purchases at retailers that are accessed via the Varo app or an email promotional from Varo.

It is also possible to utilize a card-linked offer to get cash back, which works like a coupon. Offers linked to cards need to be activated prior to activation and the purchase needs to be made with the Varo credit card in order to be eligible to receive the discounted.

Cash back is automatically deposited into your Varo bank account once you've earned more than $5. Cash-back earnings from this Varo Believe Credit Card are limited to $50 per month. In contrast, other secured credit cards provide unlimited cash-back and don't require that you browse through a particular portal or make use of individual deals.

>> MORE:

Artwork on cards from Varo.

The Chime Credit Builder Visa(r) Credit Card is issued by Stride Bank, N.A., Member FDIC under the license of Visa U.S.A. Inc. It may be used everywhere Visa credit cards can be used.

About the writer: Jae Bratton is a writer for the credit card team at NerdWallet. Her writing has appeared in blogs, newspapers and an academic publication.

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Good Debt vs. bad debt: Know the Difference

Advertiser disclosure You're our first priority. Every time. We believe everyone should be able make financial decisions without hesitation. While our website does not include every company or financial product that is available on the market, we're proud of the guidance we offer, the information we provide and the tools we develop are independent, objective easy to use and cost-free. So how do we make money? Our partners compensate us. This could influence the types of products we review and write about (and the way they appear on the website) however it doesn't affect our advice or suggestions, which are grounded in many hours of research. Our partners do not be paid to ensure positive review of their services or products. .

Good Debt vs. Bad Debt: Be aware of the distinction

Credit can be a great way to achieve goals, while bad debt is expensive and can derail them.

By Sean Pyles Senior Writer | Personal finances, debt Sean Pyles leads podcasting at NerdWallet as the producer and host of NerdWallet's "Smart Money" podcast. The show "Smart Money," Sean talks with Nerds across the NerdWallet Content team to answer listeners' questions about personal finance. With a particular focus on sensible and actionable financial advice, Sean provides real-world guidance that can help consumers better the financial situation of their lives. In addition to answering listeners' financial concerns on "Smart Money" Sean also interviews guests who are not part of NerdWallet and also creates special segments on topics such as the racial gap in wealth, how to start investing and the background for student loans.

Before Sean took over podcasting at NerdWallet, he covered topics that dealt with consumer debt. His writing has been featured in USA Today, The New York Times and other publications. When when he's not writing about personal finances, Sean can be found digging around his garden, taking walks, or taking his dog on long walks. He is based in Ocean Shores, Washington.

Updated on Feb 21, 2023

Written by Kathy Hinson Lead Assigning Editor Personal finance, credit scoring, managing money and debt Kathy Hinson leads the Core Personal Finance team at NerdWallet. Previously, she spent 18 years working at The Oregonian in Portland in roles including copy desk chief and team director of design and editing. Her previous experience includes news and copy editing for various Southern California newspapers, including the Los Angeles Times. She received a bachelor's degree in journalism and mass communications at Iowa's University of Iowa.

The majority or all of the products we feature are from our partners, who pay us. This affects the products we write about as well as the place and way the product appears on a page. However, this does not affect our opinions. Our opinions are entirely our own. Here's a list and .

Before taking on any kind of debt, think about whether a car loan or new credit card will be able to help you achieve your financial goals or make them more difficult to achieve. The debt you commit to as well as the amount and cost, can mean the difference between bad debt and good debt.

A credit card, for example, is a means to financing large expenditures and earn reward points. If not handled properly, credit card debt with high interest rates can become out of control.

Here are some general guidelines for good debt and bad debt and what to do when you're faced with an excessive amount of debt.

What is good debt?

A low-interest loan that can help increase your earnings and net worth can be examples of good debt. But too much of debt -- no matter the opportunity it could create can turn it into bad debt.

Medical debt, for instance isn't a neatly categorized in the "good" or "bad" debt categories. It's an expense that's insurmountable, and usually doesn't come with any interest. You have .

Student loans

Generally, they are viewed as an investment in the future and future, student loans generally be lower in interest rate, specifically in the case of federal student loans.

Guideline: In general, aim for your student loan payments to not exceed 10% of the projected annual after-tax earnings after you graduate. If you expect to earn $50,000 per year, the annual borrowing limit would be $29,000.

Action: To deal with overburdened student loans take a look at options the possibility of refinancing or the repayment plan that is based on income.

Mortgages

Likely the biggest financial decision you'll make, a loan is the path to homeownership.

Guidelines: Be aware prior to shopping and limit your mortgage payment up to 36% of earnings.

Make a move: downsizing and/or moving into a less expensive area could make housing costs more manageable.

Car loans

For many, a car is essential for everyday life.

Guideline: Keep total auto costs, including your car loan payment, . The loan terms must be 4 years or less, but usually with 20% down.

Make a move: trading in a car that isn't affordable will help you control costs for your car.

Make sure you track your debt the simple method

Sign up to NerdWallet to see your debt breakdown and the next installments all in one spot.

What is bad debt?

The burdensome debts that eat away at your financial standing are classified as bad debt. Examples are debts that have significant or variable interest rates particularly when they are used for discretionary expenses or things that lose value.

Sometimes bad debts are bad debts that have gone wrong. The credit card is an illustration that shows this. If you own a high-interest credit card and pay down your balance every month, it's fine. But if high-interest credit card debt accumulates over time, you could find yourself in danger.

Credit cards with high interest

The high interest rates like those that are higher than 20%, can make your debts more expensive.

Guidelines: If you're not making progress on paying off your debts with credit cards regardless of making sure you pay it all monthly, that may be a sign that you're experiencing problems .

Do something about it: If you can manage your spending Try the strategy which is where you pay off the smallest debts first. It can make your credit card debt more affordable however, you'll need to have good credit score to qualify for. In other cases, a nonprofit credit counseling agency may be an alternative.

Personal loans to fund discretionary purchases

Taking on debt for expenses like a vacation or new clothes could be an costly habit.

Guideline: Personal loans can be a good option when you have a particular objective in mind, like .

Do something about it If you're faced with an expense for a personal loan You might be in a position to .

Payday loans

are a bad debt which can become toxic. They are usually accompanied by interest rates as high as 300% which could make them immediately unaffordable. These are small-sized, short-term loans designed to be repaid with your next paycheck.

Guidelines: Financial experts warn against payday loans since borrowers could easily be entangled in an unsustainable cycle of debt.

Take action: Consider alternatives like borrowing from an institution like a credit union, or asking family members for assistance.

About the author: Sean Pyles is the executive producer and host of the NerdWallet's Smart Money podcast. His writing has been featured on The New York Times, USA Today and elsewhere.

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3 min read . Published April 06 2022

Writen by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers in navigating the details of taking out loans to purchase a car.

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At Bankrate we strive to help you make smarter financial decisions. We adhere to the highest standards of editorial integrity ,

this post may contain the mention of products made by our partners. Here's a brief explanation of how we make money .

The promise of the Bankrate promise

Established in 1976, Bankrate has a long track history of helping people make wise financial decisions.

We've kept this reputation for over four decades by simplifying the process of financial decision-making

process, and gives people confidence about the actions they should do next. process and gives people confidence in the next step.

You can rest assured you can trust us to put your needs first. All of our content is written with and edited

who ensure everything we publish is objective, accurate and trustworthy. Our loans reporters and editors concentrate on the things that consumers care about the most -- the various types of loans available and the most competitive rates, the most reliable lenders, how to repay debt, and more -- so you'll feel safe investing your money.

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Bankrate follows a strict and rigorous policy, so you can rest assured that we'll put your needs first. Our award-winning editors and journalists provide honest and trustworthy information to help you make the right financial choices. The key principles We respect your confidence. Our aim is to provide readers with accurate and unbiased information, and we have standards for editorial content in place to ensure that happens. Our editors and reporters rigorously check the accuracy of editorial content to ensure that the information you're reading is true. We keep a barrier between our advertisers and our editorial team. Our editorial team doesn't receive compensation directly from our advertisers. Editorial Independence Bankrate's editorial team writes on behalf of YOU - the reader. Our aim is to provide you the best advice that will aid you in making informed financial decisions for your personal finances. We adhere to strict guidelines in order to make sure that the content we publish is not influenced by advertisers. Our editorial team receives no any compensation directly from advertisers and our content is fact-checked to ensure accuracy. So, whether you're reading an article or a review, you can be sure that you're receiving trustworthy and dependable information.

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There are money-related questions. Bankrate has the answers. Our experts have been helping you manage your finances for more than four decades. We continually strive to provide our readers with the professional advice and tools needed to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our information is trustworthy and reliable. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content we create by our editorial staff is factual, objective and uninfluenced from our advertising. We're honest about the ways we're in a position to provide quality content, competitive rates, and useful tools to you by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for placement of sponsored products or services, or by you clicking on certain hyperlinks on our website. Therefore, this compensation may impact how, where and when products appear within listing categories, except where prohibited by law for our mortgage or home equity products, as well as other home lending products. Other factors, like our own proprietary website rules and whether a product is available within your region or within your own personal credit score can also impact the way and place products are listed on this website. Although we try to offer an array of offers, Bankrate does not include specific information on every credit or financial product or service.

Making an application for a car loan following bankruptcy may seem daunting. It's real that getting an affordable loan following bankruptcy may require some extra leg work however, it's possible. That work is going to include examining and improving your credit, while taking into consideration the extra hoops you may have to jump through. Types of bankruptcy There are two primary kinds of bankruptcy. Before making an additional loan, it is important to know the particulars of the type of bankruptcy you have filed. Chapter 7 bankruptcy The court will take legal title to some of your belongings when you file in Chapter 7 bankruptcy, and thus a temporary stay will be placed on your existing outstanding debts. The process usually takes between 80 and 130 days to complete , and can be in your credit file for as long as 10 years. Chapter 13 bankruptcy Filing for chapter 13 bankruptcy -- also known as a wage earner's plan -- allows filers to develop a plan to pay off debts that have accrued. Following court approval the plan generally consists of payments of fixed amounts for a period. It can remain on your credit report no more than seven years. How do you obtain a car loan after bankruptcy Before accepting a car loan application, there's some cleanup that needs to be taken to show lenders that you will be able to pay off your loan. Take a few extra steps to get approval and favorable conditions. Step 1. Review your credit score After you filed your bankruptcy, your credit score has been expected to shift. Although there isn't a set amount of decrease in your credit score following the bankruptcy, it can get less weight as time goes by, and you're likely to see an increase in your score last year than you will in your first. The better your credit score then the more favorable your terms will be. The score of your credit can be found by credit bureausthe three major ones being Experian, TransUnion and Equifax. It is recommended to gauge where your credit stands prior to diving into a new loan application. This way you can be sure that you are getting the most favorable deal. Enhance your credit score

Since your credit score is impacted after bankruptcy it's in your best interest to plan ahead when shopping.

3. Budget for a vehicle down down payment can greatly improve your odds of approval and may even help you save money by reducing your rates. Check out a calculator to figure out how much you could save with various amounts. Step 4. Shop around The key to finding the best deal comes down to comparing various lenders while keeping an open mind to more than just the most recent car models. Consider the advantages and disadvantages of each and then get several deals before you sign. Apply for loan preapproval

Before you go to a dealer it's recommended to apply for . This does not guarantee loan approval however it can give you the ability to negotiate and an accurate knowledge the budget you have set.

What to keep in mind following bankruptcy? While financing a vehicle could be possible following declaring bankruptcy, there are some crucial aspects to consider. Beware of predatory lenders If you are a potential loan holder with less than favorable credit You will probably encounter lenders that are predatory. This kind of lender will likely boast guarantees on financing or no credit check. These choices can result in you being liable to their high-interest rates. Understand the advantages and drawbacks that come with longer loan terms. In the same way you could be confronted with . These stretched-out loans can be a risk particularly if you are in the longer than seven years. A longer loan time frame is another situation where you're more likely to end up upside down with a loan. Think about a co-signer if your credit score is still poor, you should consider applying for an loan with the . You are more likely to receive approval since lenders will have more security from the co-signer's score. The next steps Lenders will more often allow loans of drivers who believe they are able to pay. A bankruptcy record will not hinder you from satisfying the standard. Be patient and deliberate in the process. Take time to build your credit prior to .

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Rebecca Betterton is the auto loans reporter for Bankrate. She has a specialization in helping readers to navigate the details of taking out loans to purchase a car.

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Budget, save, even Make Money with today's prepaid Debit Cards

Advertiser disclosure You're our first priority. Everytime. We believe that everyone should be able make financial decisions with confidence. And while our site doesn't feature every company or financial product available on the market We're pleased that the guidance we offer, the information we provide as well as the tools we design are impartial, independent easy to use and completely free. How do we earn money? Our partners compensate us. This can influence the products we review and write about (and where they are featured on the site) however it does not affect our suggestions or recommendations, which are grounded in thousands of hours of study. Our partners are not able to promise us favorable review of their services or products. .

Budget, Save, Even Earn Money With today's prepaid debit Cards

by Spencer Tierney Senior Writer | Certificates of Deposit, ethical banking, banking deposit accounts Spencer Tierney is a consumer banker at NerdWallet. He has been writing about finances for individuals since the year 2013, with a particular focus on certificates of deposit, as well as other banking topics. He has had his work covered by The Washington Post, USA Today, The Associated Press and the Los Angeles Times, among others. The location of his work is Berkeley, California.

Updated September 19, 2017

Written by Amy Hubbard Amy is a former banking editor and copy editor for NerdWallet. She previously worked as an editor and writer for the Los Angeles Times, the L.A. Daily News and the Hollywood Reporter, among other publications.

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Back in 1999 the entrepreneur Steve Streit created the first merchant-sold prepaid debit card later dubbed Green Dot as an option for young people to buy things online.

Prepaid cards have changed over time, and today they go beyond helping people spend to assisting them in the opposite direction budgeting and saving money. With features for budgeting that are customized or innovative incentives to make money more efficient Prepaid debit cards allow you to make smart banking decisions, and without having to go through the bank.

If you're eager to look at different cards, take a look at the list below of .

Here's how debit cards that are prepaid can assist you:

Get your budget under control

Prepaid debit cards have the logo of the card network like Visa or Mastercard, work at merchants nearly everywhere and can be loaded with money regularly. Most don't require a credit check. But they're not for everyone. They mainly benefit people who are looking for a new approach to budgeting or the replacement of an account with a checking.

One of the major advantages of prepay cards is the absence of overdraft programs and their fees that are typically associated with checking accounts. The balance of a card is a natural spending limit. A card will typically be declined without charge, if there isn't enough for an order or payment.

In addition there is a significant increase in the number of prepaid debit cards that have tools for creating budgets or goals than they did before. Around 54% of the prepaid market that was tested had these tools 2016, compared with 30 percent in 2014, as per to . The sample included 18 cards in 2014 and 22 in 2016. Each sample represented 90% or more of the market for prepaid debit cards.

As bank accounts, many debit cards for prepaid use offer mobile and online access to your account, with options like mobile check deposit and money transfers. However, the more extensive budgeting tools available on some cards allow you to:

Set your own spending limits. Budgets can be created with spending categories such as clothes and entertainment.

Visualize your history of purchases. Some cards show pie charts or other graphics that help you categorize your purchases.

Set up text and email alerts to be notified whenever you spend more than a specific amount.

Utilize sub-accounts to handle the different costs of household. The ability to designate one of your cards' sub-accounts for a particular kind of expenditure, such as food, makes it simpler to set the spending limit.

Bluebird issued by American Express and Akimbo are two cards that provide five to six sub-accounts that are connected to a master accounts however, they have their own balances and physical cards.

These can work like an envelope system of today. One card can be used for shopping at the grocery store one for dining out and a fourth for holidays and so on.

If you have children, sub-accounts can allow them spending privileges , with an amount per card that you determine.

Beef up your savings (and possibly win cash)

Budgeting is a good way to manage money, but you might need an incentive to continue it.

"Budgeting just for the sake of budgeting doesn't really work," says Thea Garon director at the Center for Financial Services Innovation. When it comes to debit cards with prepaid cards, she adds, it's more effective "when the budgeting process is tied to the financial experience, as well as aspirational objectives."

The Walmart MoneyCard is issued through Green Dot Bank, has budgeting features such as account alerts, however it stands out due to its linked savings program that is prize-linked. Last August, Wal-Mart and Green Dot added a monthly sweepstakes to this card's "vault." This vault functions as an account for savings by preventing you from spending funds from the balance, without moving it to the card's spending balance.

Saving money in the vault can give you the chance to win prizes every month 1 dollar saved is one entry in a sweepstakes which means you could win up to 500 entries. Every month you can win 499 prizes who are awarded $25 and one who wins the jackpot, $1,000.

"Especially in a low-interest market, the chance to win a little bit of money [is] captivating," says Mark Matthews who is the director of senior management at Walmart Services.

But the real winning isn't from the sweepstakes -- it's the incentive to save more and it's working. The savings account's average balance was up by more than 35%, from $413 to $572 between August through December. According to Walmart the number of people who were registered as of June, and usage of this Savings Vault on the MoneyCard has risen 233% from the previous year.

"The goal here is to create a meaningful mechanism and incentive to accumulate a balance over time to handle emergency situations," he adds. Matthews pointed out that all savings were manually added since there's no automatic savings transfer on the MoneyCard.

Prepaid cards have spiked in popularity, however ...

As a banking alternative and with the most recent enhanced features, prepaid debit cards have grown in popularity since Streit's inspiration in 1999. The number of transactions using prepaid debit cards rose by almost 34% from 2009 to 2012, and by 5.6 percent from 2012 to 2015, based on research conducted by the Federal Reserve Payments Study in 2016. While growth has slowed in recent months, the cards hold a place in the pockets of millions Americans' pockets.

The cards are secure to use, and they are becoming more secure: NerdWallet recently looked at 44 cards across the market, including major issuers and startups and found all cards are protected. More on prepaid cards will go into effect in April 2018.

However, that doesn't mean that prepaid debit cards are always the best choice. Here are a few possible reasons they may not be suitable for you:

The cards do not build credit. If you want to improve your credit score, you should consider a .

It's not the cheapest method of budgeting. There are many cards that charge monthly charges. The average from the NerdWallet analysis was $4.67. Check out some of the below.

Some bank accounts have better incentive to invest in savings. Some online savings accounts have rates of interest in excess of 1percent annual percentage. There are new banks such as Chime which reward you for saving. Your debit card purchases get rounded up to nearest dollars and the cents go into an account for savings. When you finish each week, you'll earn a 10% bonus on all the rounded-up cents which can be up to $500 per year.

Explore alternatives and compare interest rates

Author bio Spencer Tierney is a writer, and NerdWallet's expert on certificates of deposit. The work of Spencer Tierney has been highlighted in USA Today and the Los Angeles Times.

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