Most people know that prepaid cards are reloadable and accepted at the same places as major credit cards. However, what many people don’t know is that they offer so much more. Below are 6 hidden benefits of prepaid cards:
Prepaid Cards Can Help You Budget
It can be easier to follow a budget with a prepaid card . For instance, if you have an idea for how much you want to spend on a purchase, or if you have a set shopping budget each month, you can load that exact amount onto your prepaid card. This will help curb extraneous spending, because you will only be able to use the amount preloaded on your card. This is an extremely useful feature if you are supporting someone else financially; you can make sure that don’t overspend and stay within the agreed upon budget.
Cheaper than Banks
In most cases, the fees associated with prepaid cards can often be cheaper than the maintenance fees associated with setting up a checking account. Typically, the average prepaid card holder will spend much less in fees each month compared to traditional bank account users. The money saved from paying less maintenance fees can be accumulated to a sizeable amount over time which then can be used for more practical purposes such as shopping and dining.
Credit and debit cards come with the inherent possibility of fraud. Aside from someone stealing your card while you’re out and about, there is also the risk of data hacks and security breaches when shopping online. If you use a debit card (a card directly linked to your bank account), and your information falls into the wrong hands, the financial loss may not only be inconvenient, it could be devastating. Not to mention the dangers of identity theft and the subsequent ruined credit score that can happen with a stolen credit card. If you’re planning to shop online or at a brick and mortar store, simply load a set amount onto your prepaid card. If someone does steal your information, it’s more likely that you won’t have much, or even any, remaining cash available.
Prepaid cards are excellent for travelling. As previously mentioned, they offer amazing safety benefits and can also prevent you from spending over budget. This way you can focus on having fun on your vacation rather than worrying about your fraud or overspending.
No Interest Fees
Even if you do qualify for a traditional credit card, it is virtually impossible to find one that doesn’t charge interest. Some cards may offer a limited-time, no-interest, introductory period, but after that time is up, you are hit with high interest rates once again. Prepaid cards save you money by not charging high interest rates every month.
No Credit Issues
Prepaid cards are available to all consumers, regardless of whether their credit is bad or if they don’t have any at all. Your credit history is irrelevant because the money you are spending is not a loan—it is simply money that you have loaded onto the card. This takes away the risk of debt because you won’t be incurring charges that you can’t pay back. Also, because there is no credit check involved, the process of obtaining a prepaid card is much faster than being approved for a credit card. Prepaid card providers make it convenient for consumers to acquire a prepaid card with easy and quick online forms.
Please visit www.t24blackcard.com to learn more about the benefits of using prepaid cards.