What does it mean to be Unbanked?
It means not having a secure place to keep our money or the ability to access money when they need it or save for their children’s school tuition or for a rainy day or getting a loan. The funds could help grow a small business and create jobs. It means being excluded from a world of hope and opportunity in countries all over the world. Being on bank two often leads to being.
How to go from Unbanked to Banked
Secured credit card
It’s a credit card designed for people with poor credit or minimal credit history. The goal of a secured credit card is to help you build credit overtime now. They will require a refundable deposit. Generally, that refundable deposit is your credit limit, so essentially you are exchanging money today for a credit limit in the opportunity to build credit over time. If you want to look out for is the annual fee secured credit card to charge a very modest yearly fee somewhere between maybe 30 to $50, but then other brands or issuers do not capture any annual payments, so that’s another thing that kind of factory in your calculus and beyond a secured credit card there are even alternatives to building your credit
Prepaid debit card
It is an alternative to a banking product, an alternative to checking accounts, and you can reload money which means you can add money onto this card. You can only spend the amount of money loaded onto this card.
People use a prepaid card instead of a bank account.
Take care to read the terms of service for anything you join up for so that you aren’t surprised by unexpected charges. You can receive your direct payment using a prepaid card. It’s a convenient and easy way to manage your support payments. The card works very much like an ordinary debit card but instead of a bank account is linked to a direct payment account into is. We’ll pay you an immediate monthly payment to pay for the things we’ve agreed and necessary.
The majority of adults in the United States bank through traditional banks and credit unions. Nonetheless, according to a Federal Reserve report from 2021 (the most current available), 18 percent of adults in the United States were unbanked or underbanked in 2020.