Prepaid cards are often only looked at as reloadable versions of credit cards that can be used in a similar way. But they also come with a whole lot of other advantages. Here are a few ways that prepaid cards help you:
Prepaid Cards Help You Spend Wiser
Having a traditional credit card is nice, but it is also easy to spend more than you intended to because of the available credit. Cash is another option, but not only can it also result in spending more than planned, and it is unsafe to carry around large amounts of money.
Sticking to your budget becomes a lot easier with a prepaid card. If you calculate your shopping for a month, you can load the exact amount onto your card. You know exactly what you have to work with when you’re at the shop, so you are much more likely to stick to your budget. Furthermore, overspending is a thing of the past. You can’t buy more than you intended – even if you want to as your spending power is limited to what you preload on to the card.
Cheaper than Banks
A report released by Consumer Affairs has revealed that the average prepaid card user’s fees are far less each month compared with a traditional bank account holder. Opening a checking account involves monthly maintenance fees that are often higher than the associated prepaid card costs.
When you are out and about, shopping or visiting a restaurant, your card may often leave your sight when settling the bill and this opens up an opportunity for potential frauds to take place. With a traditional debit or credit card linked to your bank account or a credit line, the potential financial loss can be devastating. This risk is further increased with data hacks and security breaches, making online shopping also potentially dangerous.
Mitigating this risk is tricky, fortunately with a prepaid card you are able to limit your losses. If you plan on using your card at a restaurant or online, you can simply load what you need prior to the purchase. If your information falls into the wrong hands, it is likely that you will have already used what was loaded – there’s little to no funds left for criminals to get hold of.
Two very important considerations when traveling are your personal safety and expense management. Prepaid cards can be used to cover pretty much all your monetary needs for your trip, from hotel reservations, to spending money when you are out and about. Prepaid card can help limit your vacation spending, and also offer wonderful safety benefits.
No Interest Charges
High interest is one of the biggest drawback with using traditional credit card. With the exception of a ‘limited-time introductory period’, you can’t find a credit card that does not charge interest. With a prepaid card, there’s nothing to worry about. You can use the money you have loaded, and never have to bother with exorbitant interest rates.
No Credit Considerations
When you apply for a prepaid card, there’s no need for credit checks and records to take part in the process allowing almost anyone to get themselves a prepaid card. You don’t need a good credit record – in fact, you don’t need a credit record at all. No credit check also means a much faster application process.
The hidden reason behind this benefit is because with prepaid cards, card holders are only allowed to spend what was preloaded onto the card. It is not a loan; therefore, no credit screening procedures shall apply. More importantly, you will never have to worry about getting into debt or buying things you won’t be able to pay for later.
Getting a prepaid card is a far simpler and beneficial alternative to credit or debit cards. Card providers make it easy for you, it is as simple as filling out a quick online form.
Please visit www.t24blackcard.com to learn more about the benefits of prepaid cards.