Prepaid cards have been around for quite some time. A majority of people prefer to use it because of its many benefits. If you want to determine your budget and take control of your spending, a prepaid card can be the best option for you.
A prepaid card allows the cardholder to deposit a certain amount of money on the card and use it just like credit cards. They can be used in ATMs, restaurants, shops, etc.
They have the following benefits to their users;
- They are easily available
Prepaid cards do not require a credit check to be issued like credit cards. This means that anybody can get it irrespective of their background and credit histories. There are no employment verification checks so there’s an approval guarantee.
- They are convenient
Prepaid cards offer convenience because they can be used in most places around the world and online as well. This gives its users the power to shop and pay with an easy swipe of the card, or they can shop in the comfort of their homes. Prepaid card holders don’t need to perform currency exchanges from one country to another when travelling.
- Direct deposit
Prepaid cards allow you to deposit your money directly. It also gives you instant access to your money. When you register and get approved for a prepaid card, you’ll get an account and routing number, which means that you can enroll in direct deposit. Employers are now turning to a paperless payroll systems. Prepaid cards, through the payroll process is becoming seamless.
- The prepaid cards are secure
If you’re worried of sharing your financial information or becoming a victim of identity theft, a prepaid card will be of help through these ways;
- It has a cap to spending that limits your total loss
- Some companies offer comprehensive cover against fraudulent spending or theft.
- They protect your credit score; that means a prepaid card cannot have a negative effect on your credit rating as spending won’t be reported to the credit bureaus.
5.They are budget friendly
Prepaid cards can help you set budgetary guidelines and abide by them. This is because it has no line of credit, the balance in the card is what is available for spending, and there is no worry of going into debt.
The holder can decide to use the card as if it were a separate bank account; pay onto the card the money designated to spending, or keep these charges separate from their overall savings. This will enable them to track their spending easily.
With a prepaid card, you can shop online. You can simply go through websites, compare the prices, and make a purchase in a matter of time. This is advantageous to the consumers because it saves you time that you would have wasted on queuing at a store.
- Pay your bills
Gone are the days when people used to drive to the utility companies to pay their bills, the prepaid cards has made payment easy and fast. These cards can even allow you to schedule an automatic payment so that you don’t forget your due date for payment.