It is widely known that prepaid cards are reloadable and are today a recognised payment option, offering the same functionality as traditional credit and debit cards. Regrettably, and what many people don’t realise is that prepaid cards can offer much more than this. Below are some of the lesser known benefits of using prepaid cards:
Owning a Prepaid Card Can Help You maintain your Budget
If you have owned and used a conventional credit card in the past, you may very well have ended up spending more than you had initially planned for, just because the additional credit was available. This dilemma can occur even while shopping with cash as it can be quite risky, particularly if you have a lot on hand.
It can be effortless to manage and monitor a budget with a prepaid card. For example, if you have pre-decided how much you want to spend on a particular purchase, or if you have agreed upon a fixed shopping budget for each month, you may load that specific amount onto your prepaid card beforehand. This method helps to cut back on superfluous spending, as you will be limited to use the amount preloaded on your card. This is a useful function if you are supporting others financially; you can ensure that they don’t overspend and stay within the budget you have previously established.
Cheaper Than Using Bank Cards
In the majority circumstances, the cost associated with Visa prepaid cards will often be cheaper than fees associated with opening a bank account and the maintenance required. Usually, the regular prepaid card user will pay out much less in fees each month in comparison to conventional bank account users. Instead the money freed up from paying unnecessary maintenance fees could be accumulated to a substantial quantity over time which can then be used for more enjoyable and functional purposes such as shopping and dining out.
Safety Benefits of Prepaid Cards
The use of credit and debit cards include the innate possibility of fraud. Apart from having your card stolen or pickpocketed while you’re going out and about, there is also the danger of having your card hacked and stolen when shopping online. If you own and use a bank issued credit or debit card, and in the circumstance that your information falls into the wrong hands, the monetary loss incurred may not just be problematic but devastating. Additionally, there is the risk of identity theft and the ensuing damage to your credit score that can occur with a stolen credit card. In case you may be planning to shop online, conveniently load a fixed quantity into your prepaid card. This ensure that if your information does get stolen, it’s likely that you will not have much money remaining.
Easier Travelling Using Prepaid Cards
Prepaid Visa cards are an exceptional payment solution for travelling. As mentioned above, they provide remarkable safety advantages and may also advert you from overspending on your pre-established budget. By using a prepaid card, you can emphasize on enjoying your vacation instead of being anxious about possible fraud and overspending.
No Interest Fees when using Prepaid Cards
Even if you manage to qualify for a conventional credit card, it is practically impossible to find one that doesn’t charge any additional interest or maintenance fees. Various cards may offer a limited-time, no-interest applied, opening period, but after that time is over, you will be bombarded with large interest rates once again. Using prepaid cards can save you a considerable amount of money by not getting charged with high interest rates every month.
No Credit Issues Using a Prepaid Card
Prepaid cards are made available to most customers wanting to use one, irrespective of whether their credit score is bad or non-existent. Your previous credit history is not relevant to your prepaid card application, as the money you will be spending is not a loan and is simply money that you have pre-loaded into your card. This function removes the risk of debt accumulation as you won’t be inviting charges and interest fees that you can’t pay back. In addition, the application process is often much faster and more convenient compared to a credit card where the wait for approval can take weeks to months.
Before looking at where to get a prepaid card, make sure you do your research so that you can know for sure that you are obtaining the best prepaid card available in the market.