Prepaid Cards: Interesting Facts You Should Know

Undeniably, credit and debit cards have become very popular over the years thanks to the peerless and exciting benefits they offer. However, aside from the two, there are other innovative financial tools that have given conventional cards a run for their money—prepaid cards.

As the name implies, prepaid cards have to be loaded with money first before they can be used for ATM withdrawals and purchase transactions. Transactions using the prepaid card will be deducted directly from the balance that’s available on the card. Once the balance has been depleted, you won’t be able to use the card for the time being.

Thankfully, as soon as the money has been loaded on the card successfully, they can use it right away for purchase transactions and ATM withdrawals (through merchants or online). If you are wondering if prepaid cards is the best option for you, below are some of the great facts you need to know about this amazing financial tool:

Prepaid cards are a great alternative if you don’t like having a bank account. Nowadays, those that are looking for an option to conventional banking can never go wrong when they use prepaid cards. Through the years, prepaid cards are also considered the go-to of those who want to keep their balance in one place.

Some providers of prepaid cards give cardholders the option to check their transactions online and in one place. This is beneficial if convenience and ease is a priority for you. If you don’t like to go through all the hassles of applying for a bank account but would like to enjoy the benefits they offer, this is the best tool for you.

Amazingly, even if you have no credit history or even if you have bad credit, you can opt to get a prepaid card as they are a lot easier to obtain. There is no need to submit any financial or confidential documents or information just to get one. Since prepaid cards have no credit capabilities, users won’t have to worry about spending beyond their means.

Since prepaid cardholders won’t need to “borrow” from the bank, they are spared from all the risk of incurring massive debts. In addition, you are also spared from paying those exorbitant interests, fees, and other unnecessary charges. Prepaid cards are also ideal if you want to put an end to overspending.

Prepaid cards can also be ideal if you want to manage your money properly. If you want to have the consummate budgeting ally, you can never go wrong with a prepaid card. Unlike other cards, you also won’t need to pay high monthly interest, fees, and other charges.

Many parents also use prepaid cards to teach their kids important money management lessons. They also use prepaid cards to teach their kids how to adhere to their monthly budgets and not spend beyond their means. Once the balance on the card has been depleted, they have the option to not load money on the card until the end of the month.

If you are considering getting a debit or prepaid card in the future, it would be best to get a prepaid card first. A prepaid card is a great financial tool that you can use to practice and learn proper money management and budgeting. Moreover, prepaid cards are low risk and easy to use and can help you master the plastic cards and personal finance.