December 7th, 2009
PerkStreet Financial Debit Card Review
PerkStreet Financial offers consumers more than just a run-of-the-mill debit card with a unique debit card that can earn fun incentives like mp3 tunes or a Best Buy gift card just for spending the way you normally spend. PerkStreet offers the practicality of sticking to debit, the rewards program of a credit card, and the best perk of all: a $50 bonus for opening a new account. That’s free money in the bank for signing up with one of the only debit card rewards program out there.
The credit-tight economy and issuers’ expensive term changes have made consumers look to debit card, gift cards, or cash over the costly risks of credit cards. Debit cards have become especially appealing to credit-conscious consumers because they offer the same convenience of carrying a little plastic card without the hassle of credit cards’ debt, exorbitant fees, rising interest rates, and potential overspending. PerkStreet swoops into the mainstream at a perfect time to offer consumers more than a run-of-the-mill debit card, but also the ability to earn cash back bonuses, gift card benefits, coffee rewards, and music offers.
How it Works – and how to score $50!
PerkStreet works just like a typical debit card with a free online checking account to deduct your Visa debit card purchases from. Best of all, you earn 1% back on your non-PIN purchases, which is more than 10X that of an average debit card of .04% rewards. So are you a caffeine addict, music junkie, or shopaholic? PerkStreet’s unique incentives offer rewards from places like Starbucks, iTunes, and Gap. Plus, you can switch between rewards if you decide you’d like to earn free music instead of free coffee.
PerkStreet is also offering a limited time bonus offer of $50 for opening a new checking account. To qualify for the $50 bonus, you must open an account with a minimum $25 deposit and keep your account active for 3 months. This requires making a transaction on your card; whether its writing a valid check, using Online Bill Pay, or doing a withdrawal/deposit to the account. This offer is only valid for first-time PerkStreet Financial checking account customers only.
If you already have an account with PerkStreet Financial, you aren’t left out; current customers can earn a $25 bonus by doing a non-PIN purchase plus signing up for direct deposit.
More Perks
- FDIC insured and backed by the Bancorp Bank
- Nationwide network of 37,000 surcharge-free ATMs, which is more than Bank of America, Wells Fargo, US Bank, and other banks
- No minimum balance requirement, and no monthly fees as long as you keep the account active
- Free checks and free bill pay
- No hard credit inquiry however; the Plus account with overdraft protection may have a hard credit inquiry
- 24/7 customer service line
Cons
- Doesn’t build credit history; debit cards are not reported to credit bureaus, your credit report will not improve with debit card usage
- Be wary of overdraft fees and other debit card features; while the overdraft fee is $30 at PerkStreet, it lets you opt-in for it instead of automatically enroll you into overdraft protection.
- Monthly inactive fee of $4.50
Conclusion
PerkStreet’s debit card has features similar to a credit card—rewards and cash back—but it’s still not a credit card. If you want to build your good credit history, a secured credit card is the better option because you can build your credit history while still limiting and controlling your credit usage.
But if you are having issues with your credit and need a debit card alternative, or you are already a debit card user and want more out of your card, PerkStreet is worth the try. It’s perfect for a college student not ready for a credit card or a shopper who was planning to use debit for this year’s holiday shopping anyway. Best of all, you can spend as you normally do while earning extra perks, and you avoid the risk of extra fees and debt that comes with a credit card.
