For years, credit cards have been a payment method of choice by shoppers. It is a sensible go-to option because of its security, versatility, and convenience when making purchases either online or in person. However, there are cases when credit cards are not an option for some individuals because they were not able to meet the criteria mandated by the bank. Due to these limitations, card companies introduced prepaid credit cards. It works like a credit card, but the cardholder has to ensure that there is a balance on the account via prepayment.
Prepaid credit cards can be used anywhere. It has the same features of credit cards, with a Visa or MasterCard logo. You can use it in restaurants, shopping malls, or online, among others. It is ideal for those suffering from credit card balances. Below are the many consumer benefits that you can get from these cards.
- Unnecessary Credit Checks
Whenever you apply for a credit card, banks run credit checks to check on your credit score. If you have unpaid credit card bills, the banks will deny you from acquiring it. When applying for prepaid credit cards, credit checks are unnecessary as the card company does not require them.
Always remember that a prepaid card is not a credit card. The amount you are spending depends on the amount of load or prepayment deposited into the account. If you maxed out your card, you do not have to fret about it. It only allows you to spend the funds loaded to the card.
Prepaid credit cards work the same as credit cards and are accepted anywhere in the world. Just make sure that the merchant displays the Visa or MasterCard logo. When making transactions, you can swipe the card.
Another advantage of having a prepaid card is the convenience it gives to travellers. You no longer have to worry about currency exchange or carrying a lot of cash during your travels. When you eat at a restaurant or pay for the hotel, you can use the card to pay your bills.
It is always a risk carrying a big stash of cash wherever you go. You will be exposed to theft or risk getting the attention of a grifter. With prepaid credit cards, you are limiting exposure to yourself from harm. If you are travelling, prepaid cards are a safer option.
Also, the cards provide additional security to protect the holder from fraudulent activities. If you notice fraudulent charges on your card, immediately report it to the bank or card company. They can help prevent further fraud activities as well as assess liability.
One of the challenges of having a credit card is the tendency to overspend, resulting in going into debt. With prepaid credit cards, it provides convenient ways to budget your money. After the funds are all spent, you can no longer spend more than that. It is an exceptional tool for keeping you from spending too much. It makes budgeting easier and friendlier.
- Save Money
Prepaid credit cards are excellent budgeting tools that can assist in saving money. Every time you receive a paycheck, transfer a portion of your salary to the prepaid card for your savings. You can learn how to budget your funds wisely, while at the same time save money.
Every year, more individuals are adapting to the benefits they can reap from prepaid cards. It is easier to control than credit cards, while at the same time enjoy the cashless payments. Plus, it is also secure. Therefore, you do not have to think about excessive spending.
Hannah Gilbert is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.