Banks & Financial InclusionFinancial InclusionHelen ChildPaymentsPrepaid Currency Cards

Prepaid Cards: Who and What are they for?

Card Payment

Prepaid Cards work exactly as the name suggests; you load money onto them in the currency of your choice and they can be used in the same way as any debit or credit card. They are a much safer and sometimes easier option than other cards which is why they are perfect for a number of situations. Many would wonder what the difference between getting a normal debit card is. Who and in what situation would you benefit from having this card? If these are questions you are asking, keep reading to understand how you might be able to benefit.

Teenagers

Whilst you can easily set your child up with a Children’s current account, there is always the worry that because they are kids they will spend all the money in the account. The difference with a prepaid card is that you can keep track of how much money is on it at any one time and have access to an online account which shows you all the charges to it. It can also be useful if they go away on a school trip or their first holiday with friends so that unlike if they lost cash, the money can be recovered. The card can be blocked immediately the same as with any other card.

Poor Credit

Often those who have bad credit from not keeping up with loan repayments will greatly benefit from a pre-paid card. If you try applying for a normal debit or credit card it is very likely that you will be rejected but with a pre-paid card there are no credit checks and you can receive your card the next working day. You might find that having this card helps you to reel back your spending and with some cards you might even be able to boost your credit rating over time.

Money Abroad

Prepaid cards are great for you and your children to use abroad for a number of reasons. Firstly, when you first put the currency of your choice on your card it will stay at the exchange rate from that time. That means if the exchange rate of that day works in your favour you could have a lot more currency for your money even if it drops when you’re abroad.

It is well known that tourists abroad will often become easy targets as it is likely that you are carrying large amounts of cash on you or where you are staying. By having a prepaid card you reduce the risk of your identity and money being stolen.

You also won’t get charged by the bank every time you withdraw money abroad in the way that you do with credit or debit cards.

Budgeting

Having an overdraft may seem like a great idea but when you’re consistently dipping into it and being charged to do so you’ll find your money disappears very quickly. A Prepaid card will work for you in the same way as any other card but you won’t have to worry about spending money you don’t have.