The 4 best prepaid cards of 2024

Prepaid cards are a type of card that let you access money you’ve loaded to the prepaid card account.

They may sometimes be called “prepaid credit cards” or “prepaid debit cards,” but unlike credit cards, prepaid cards don’t involve borrowing any money, which means there’s no credit check required. And unlike debit cards, prepaid cards aren’t linked to your bank accounts.

Instead, you add money directly to the prepaid card account. When you make purchases with the card, you use the money you loaded.

A prepaid card can be a good alternative to a credit card if you want to avoid the temptation of racking up debt. It can also provide the convenience of plastic if you don’t qualify for or have a checking account.

Here’s our take on the best prepaid cards of 2024, plus some alternatives for you to consider.

• How we picked these cards
• How do I get a prepaid card?
• Do prepaid cards hurt your credit?
• Are prepaid cards worth it?
• Alternatives to prepaid cards

Best for no monthly fees: Bluebird® American Express® Prepaid Debit Account

Here’s why: A lot of prepaid cards charge various fees. But if you’re fee averse, you’re not totally out of options — the Bluebird® American Express® Prepaid Debit Account could be a solid choice for you.

It comes with the following:

• No monthly fee
• No ATM withdrawal fee at MoneyPass ATMs ($2.50 fee at other ATMs, plus the ATM operator’s fee, if any)
• No fee for cash reloads at Family Dollar (but up to $3.95 at other retailers)

Best for cash back rewards: American Express Serve Cash Back®

Here’s why: Rewards are one of the biggest features you’ll miss out on if you avoid credit cards. But with the American Express Serve® Cash Back, you’ll earn 1% cash back, which is applied to your account and can be used for future purchases, on every purchase you make.

While that doesn’t compete with the top cash back credit cards, it’s better than nothing.

Here are some of the fees the American Express Serve Cash Back® comes with.

• A monthly fee of $7.95
• No fee to get the card online (up to $3.95 card price in store)
• No fee for withdrawals from MoneyPass ATMs ($2.50 fee per transaction for out of network ATMs, as well as any fee the ATM operator may charge)
• Cash reload at retail locations can cost you up to $3.95, depending on the retailer

To learn more about the American Express Serve® Cash Back, read our editorial review of various Serve® cards.

Best for Walmart shoppers: Walmart MoneyCard

Here’s why: If you’re a frequent Walmart shopper, you might appreciate that you can use the Walmart MoneyCard to earn 3% cash back for shopping at Walmart.com, 2% at Walmart fuel stations and 1% at Walmart stores — for a total of up to $75 in cash back each year.

But the card comes with some fees, including the following:

• There’s a $1 card purchase fee.
• You’ll pay a $5.94 monthly usage fee, which can be waived if you set up a qualifying direct deposit.
• There’s no fee to add cash using the in-store app at Walmart — but adding cash at the register will cost you $3, and other locations will run you up to $5.95.
• Expect to pay fees for ATM withdrawals, teller cash withdrawals, overdrafts, foreign transactions and more.

You can also bank with the Walmart MoneyCard. Some of its banking features include overdraft protection and early paycheck access through direct deposit. You can also earn 2% APY on any money you have in savings.

Best for kids: FamZoo

Here’s why: The FamZoo card gives parents a prepaid option to allow their kids the chance to earn and spend money. It also has built-in tools that can help teach financial responsibility.

Parents load up a main funding card, which they can then use to transfer money between each family member with a card. As a parent, you can use the card to distribute money for things like errands, chores or allowance — it’s up to you. You can also request reimbursements or contributions to a shared family fund.

Here are some of the card’s other key features and fees you need to know.

• There’s a $5.99 monthly family subscription fee, but you’ll save if you prepay for 6-, 12- or 24-month packages.
• FamZoo doesn’t charge certain common fees, like for ATM withdrawals, but other fees may apply.
• There are multiple ways to reload, but fees and transfer speeds can vary.

There are also handy financial tools that can help kids learn to monitor spending, make budgets and save using automatic deductions. Parents can opt to reward responsible financial behaviors with parent-paid interest and parent-paid chore commissions.

Looking for more family finance tools? Check out our article on the best debit cards for kids.

How we picked these cards

The best prepaid cards are not only great budgeting tools, but they also provide a lot of other features and are relatively affordable. We considered several factors as we compiled our list, including fees, extra benefits, free reload options and ways to get money back.

We also wanted to highlight cards that go above and beyond the norm. The cards we chose have special features, like a high-rate savings account, compatibility with popular digital wallets or maybe a huge free ATM network.

How do I get a prepaid card?

Depending on which card you want, there are a few different ways you can apply.

• In-store — Some retailers, like Walmart, allow you to purchase and load money onto a new prepaid card.
• Online — Many prepaid cards allow you to apply through their websites.
• At a bank branch — Some banks, like Chase, offer prepaid cards that you can apply for at your local branch.

Do prepaid cards hurt your credit?

Prepaid cards don’t hurt your credit. Unlike credit cards, you aren’t borrowing any money from the card issuer — you’re accessing your own money that you’ve uploaded to the card account.

Because of this, prepaid cards don’t require a hard credit inquiry, which can have a slightly negative effect on your credit scores.

But prepaid cards also don’t have any positive effect on your credit. With a credit card that reports to the three major consumer credit bureaus, making payments on-time and in full and keeping your overall balance low can help you build credit history. Prepaid cards don’t report any of your activity to the bureaus, so they won’t help you build credit.

Are prepaid cards worth it?

Prepaid cards can make sense in certain situations — for example, if you don’t have a checking account or you just don’t want the temptation of using credit.

But there can be downsides to prepaid cards. One major downside? The relatively high fees just for holding, loading, or even withdrawing money from the card. And you won’t build credit by using a prepaid card. If you’ve already got a bank account, or think you might be interested in opening one, consider your alternatives instead.

Alternatives to prepaid cards

As you decide if a prepaid card would be the right choice for you, here are some alternatives to prepaid cards to consider.

Free checking account

If you’re looking at prepaid cards for your money management because of the fees that can come with bank accounts (like overdraft fees), you might be interested in a free checking account from a bank or credit union instead.

Secured credit card

Prepaid debit cards can’t assist you in building credit like a secured credit card can. Compare offers for secured credit cards on Credit Karma to learn more about your options — some secured cards don’t require credit checks or even bank accounts to apply. Keep in mind, however, that they do require a security deposit, so you’ll have to put money down to use this type of card.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the card shown, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.