Having the proceeds from a loan placed on a prepaid debt card can help you avoid using a bank. Some people avoid banks because of what they perceive to be high fees for services. Others may at least temporarily avoid banks because of problems with their accounts, such as garnishment. For example, a credit card company could win a court order to garnish your bank account after you stop paying on a credit card. Garnishment allows the credit card company to make unannounced withdrawals from your bank account until the debt is paid.
Purchase a prepaid debit card. The cards are available at many large retail stores or online. Make sure the prepaid card has a MasterCard or Visa logo, and read about services offered by the card before purchasing. Call the customer service number listed on the card or on marketing materials to confirm that the prepaid debt card accepts direct deposits.
Activate the prepaid debt card by following instructions included with the card. A prepaid card purchased in a store typically can be activated at a checkout register by presenting cash to be added to the card. A card ordered online may require you to mail in a money order for your first deposit.
Shop around for a loan. You should obviously look for a loan with the lowest interest rate and fees, but your primary goal is to find a lender who will give you the loan proceeds in the form of a direct deposit to your debit card. Simply tell the lender that you don't use banks and would like to know if your loan can be issued through direct deposit.
Give the lender the direct deposit routing number and account number for your prepaid debit card after you are approved for the loan. Get the routing and account numbers by calling the customer service number for your prepaid card.
Confirm that the loan proceeds have been deposited to your prepaid card by checking the balance. Follow instructions with your card to check your balance. Options could include using an ATM to check the balance or calling customer service for the debit card.
You can also place loan proceeds on a debit card by taking a check from the lender. Then cash the check at a store offering check cashing services. Contact the store in advance to determine limits on check cashing, such as the dollar amount or type of check. For example, some stores may cash only payroll checks. Once you have cashed the check add the proceeds to your debit card by following instructions provided with the card. You may be able to add the money to your card using an ATM or through a money-transfer service.