Prepaid cards have been around for years but with the ever amounting expense of using credit or debit cards they are now becoming a more appealing payment option. Effectively they act in the same way as a normal card in that you load money onto it and can spend it either online or in store. They are accepted internationally in most places as they usually have either a Visa or MasterCard logo on them similar to credit/debit cards. However, unlike these cards you cannot borrow any money or go into an overdraft so you won‚Äôt have to worry about incurring debt.
In terms of which prepaid card is best, you will have to explore all of the available options and decided exactly how you aim to use it. There are a number of reasons you may want a prepaid card such as;
- Having a card meant for specific monthly purchases such as food shopping or even shopping for clothes online, it is a great way to control what your spend.
- You may not want to get into a complicated agreement for a credit or debit card with a bank just yet.
- It is a safer alternative to carrying cash on you, especially if it‚Äôs a large amount of money which can make you a target.
- It can be given to your child as a way of teaching them money management and also to track what they are spending their money on.
- Instead of worrying how much you are spending abroad you can take a prepaid card with currency at a set rate loaded onto the card. This controls your spending and makes sure that you are not suffering from bad exchange rates day to day.
- It is a lot easier and quicker to be replaced than other card types, especially if you are out of the country.
These are just a handful of the common reasons that people want prepaid cards but once you have decided what you want it for it is time to start comparing cards. Just like with flights, shopping etc. there is an online comparison sites for prepaid cards to help show you what is on offer. You‚Äôll be able to see the best way to save money, which cards can give you cashback on purchases, which have fees etc. Generally you‚Äôll find that there are three main differences between the cards which are the currency you load onto it, the fees involved and how you can top it up.
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