6 Hidden Benefits of Prepaid Cards

Dec 16

6 Hidden Benefits of Prepaid Cards

Prepaid Visa cards offer so much more than just a reloadable plastic card that can be used anywhere major credit cards are accepted. Listed below are some overlooked advantages of prepaid cards:

Prepaid Cards Can Help Control Your Spending

If you have had traditional credit cards in the past, it should not come as a surprise when find out that you spent far more than you originally intended, simply because credit was available. Even shopping with cash can be somewhat risky in this aspect, especially if you’re shopping with large amounts. This poses a danger to carrying around large amounts of cash, but you might end up spending more of it than you initially planned as well.

By using a prepaid card, it can be much easier to stick to a budget. Let’s say for example that you have a specific shopping budget for that month, or you know the exact amount you will need for a purchase, you can plan ahead and load that exact amount onto your prepaid card. By doing this, you can help prevent any further spending due to temptation, and this boils down to the fact that you will only be able to spend what you preloaded onto the card. This is also a very helpful feature if you are in a position to support someone financially, and more importantly want to make sure they do not fall into the trap of over spending.

Cheaper than Banks

According to a report released by the Consumer Affairs, the fees associated with prepaid cards are often lower than maintenance fees that a consumer may have to pay by opening up a traditional savings or checking account with a bank. The report revealed that the average prepaid card user will be required to pay much less in monthly fees, compared to traditional bank account holders.

Safety Benefits

While settling a bill at a restaurant or paying for a product at a shop, there are certain incidents when a credit or debit card might leave your sight. Nowadays where data hacks and security breaches are rampant, online and in-store shopping can also be somewhat risky. If you use a traditional debit card for payment, a card that is linked to your bank account, the financial losses can be devastating. And if your information ever falls into the wrong hands, this can be a greater risk to your funds in the account, not to mention the headache of claiming insurance and closing that bank account. However, if you’re planning on shopping online or visiting a restaurant, you can just load roughly what you think you will require onto your prepaid card. If someone does steal your information after the fact, you likely will not have much (or any) remaining cash available in your prepaid card account.

Traveling

Prepaid cards are also great for travel, from making reservations to bringing funds with you for shopping and expenses. As mentioned above, prepaid cards offer terrific safety features and they can help you control your spending, two very important factors to consider when you are about to go on a vacation.

No Interest Charges

In the event that you are considering application for a traditional credit card and even if you do qualify, you will not be able to find one that does not charge interest, with the exception of a limited-time introductory period. With a prepaid card, you will never have to worry about exuberant charges like high monthly interest rates.

No Credit Considerations

It does not matter if you do not have credit or have bad credit history prepaid cards are available to all consumers, regardless of their credit history status. In fact, when you open a prepaid card account, your credit will not even be taken into consideration and no credit checks are run. This is simply because the money you are spending is not a loan and simply what you load onto the card, this renders your credit history irrelevant and you will not have to worry about getting into debt by making charges that you will not be able to pay back. And since there is no credit check involved, the application process is also much faster. Prepaid card providers will make it easy and convenient for consumers to open up their prepaid card by filling out an online form.

To learn more about the hidden benefits of prepaid cards, please visit www.transact24.com today.