6 key reasons to why prepaid cards are the best payment option

prepaid cards are the best payment option

Debit and credit cards are known to be magnets for fraud. The commonness of fraud has swollen exponentially over the past few years. While there are quite a few safeguards someone can take, ring-fencing is able to help you lessen credit card risks. Prepaid cards are one such instrument of fraud prevention. Prepaid cards are first loaded with funds prior to use. Once the money on the card are depleted, it can effortlessly be refilled once again with the needed amount. As opposed to carrying multiple debit cards or multiple credit cards, a single prepaid card is all you will need. The following are various reasons that show how prepaid cards are the best payment option:

1. Keep Tabs on Your Finances

The age of easy credit has come and gone. Now, any instrument or method that helps people maintain control of their money must be most certainly welcome. The reasons you may want a prepaid card can be many, but assisting with budgeting should be one of the top motivations. Take some time and outline a budget, and place the amount you’ve set onto the debit card at the beginning of each month or week. You may also find cards that offer a cash-back incentive or donate a certain percentage of their profits to causes nominated by the cardholder. Before you apply for prepaid card, it is also advisable that you to take some time to calculate your monthly budget.

2. Flexibility

Different than gift cards and store cards, a prepaid card can be used in most online retailers and with most brick and mortar stores. With most prepaid cards, you are able to top them off via a bank transfer, your cell phone or even online through a secured website.

3. Fewer or No Credit Checks

The process of a prepaid card application typically requires less checks on your credit history than a normal credit card would. Where credit checks are compulsory, they are also often less strict. Some cases have shown that using a prepaid card can aid you in building up proof of your credit-worthiness. If you do not hold a bank account, there are still some prepaid cards that you would qualify for.

4. Great for the Whole Family

Without risking the incurring of penalties from an overdraft, prepaid cards make for a great way to assure that any student has access to finances. As young teens may also qualify for the prepaid cards, this will help them learn the value and importance of money and good spending habits. Parents will be rest assured, knowing that their children can always access the necessary funds for errands and emergencies.

5. Backed by Major Financial Institutions

Prepaid card issuers are major corporations which you can wholeheartedly trust. Specifically, big players such as Visa are recognisable brands and institutions. They are acknowledged all over the globe.

6. Safer Than Cash

Carrying a Visa prepaid card around are significantly more secure than carrying cash. If they are lost or stolen, you are able to terminate them with a simple telephone call. In addition, they also offer a convenient and safe way to complete transactions online. Thus, they are an outstanding option for bringing overseas on your travels, making you less susceptible to variations in international exchange rates.

What are your thoughts about prepaid cards? Have you considered using one? Do leave a comment and share.

*This is a collaborative post 

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