Both credit and debit cards now come with a lot of disadvantages whether it be hidden fees, terms etc. As a result many people are turning to pre-paid cards as an easier and more ideal financial option. There are numerous advantages to using Pre paid cards and here we will take a look at them to help you understand whether or not this is a payment method you may want to explore.
One of the biggest advantages people find with pre-paid cards is that you don‚Äôt need to go through any credit checks or verification of employment/bills/address etc. It is very easy to get approval for pre-paid card which means it takes a lot less time and hassle than it would be applying for other types of cards.
Prepaid cards are accepted in stores and online the same as credit or debit cards and in most cases are preferred/more accepted than credit cards.
With credit and debit cards you will often run the risk of overspending which can lead to immediate charges from your bank. It can also get you into bad habits by accepting larger overdraft limits from your bank and constantly living in debt. With a prepaid card you can only spend what you have deposited so you aren‚Äôt spending money you don‚Äôt have and risking overdraft fees.
Using a prepaid card is extremely easy with the money being immediately available to you after you deposit it into your account. You are able to direct deposit into your account in the same way as other types of cards without having to wait ‚Äòx amount‚Äô of working days.
Just like with credit or debit cards, pre-paid cards can also be used to withdraw money from ATMs and is protected with a pin number.
They can act as a great way to provide your children with money and teaching them financial responsibility. With a prepaid card you can control how much money your child has and be safe in the knowledge that they are not incurring any fees or going into an overdraft.
It can also be a great way for individuals to work towards improving their credit score and getting rid of bad credit history over time. Although this does not apply to all pre-paid cards, some can report back to major credit bureaus on your behalf and if your account is regularly in good standing then it will help improve your credit score. It is however important to check which providers work in this way beforehand.
They are a great alternative to taking your credit or debit card abroad with you. Often when abroad people tend to worry about the charges they are incurring with their bank from taking out money but with a prepaid card it is all your own money and you will not be charged. It also helps you keep track of spending as you can pre pay money onto the card before you go away to ensure you are not overspending because of the currency exchange. You will also find that with some pre-paid cards you are able to pre pay money in a certain currency and whatever the exchange rate on the day is, is what you will get on your card.
You will also be able to track your spending from a prepaid card online through any device of your choice. This can not only help with your own spending but be particularly useful if you have given the card to your child and want to keep track of their purchases.
Finally, with some prepaid card companies you are able to earn money if you refer a friend to them. Whilst this is a common practice in many companies now, it is not a system often seen within banking.
If you feel that after reading the numerous reason above you would benefit from owning a prepaid card,then you can read more here .