Prepaid cards work similarly to any other cards, with the added benefit of being safer and more convenient than traditional debit and credit card. They’re also a perfect replacement for cash – you can buy things anywhere that accepts credit cards, either in-store or online.
When dealing with your finances, safety is high on the priority list. Here are 5 ways which prepaid cards can help protect you.
Prepaid cards have a big safety advantage when travelling abroad. All you need to do is preload the amount of money you want to spend, and use it the same way as you would your credit card. You don’t need to carry around a lot of foreign currency, as it’s all on your card.
Prepaid cards don’t carry the risk of a credit card. You won’t be able to overspend, because your risk is limited to your money that you have loaded onto the card. If by any chance your card is lost or stolen, all you need to do is contact the card company to block it. Some companies even offer a replacement card service while you’re away.
Consumer fraud rose 26% last year (FFA UK), and prepaid cards are a great way to reduce that risk for yourself. When you purchase online, make sure you can use a prepaid card to ensure that your finances are protected.
Prepaid cards aren’t linked to your bank account or credit record, so if something should happen (theft or fraud), the main portion of your finances is still safe. They limit losses to fraud, because you can only spend what’s loaded on the card at any given time.
No Credit Check
To acquire a traditional credit card, you’ll need a credit check. Your credit report can be seen and used by financial institutions, and your resulting credit score can often have an impact on whether or not you can borrow, and how much you’re allowed.
Prepaid cards do not require a credit check at all. This makes them far more convenient – you can just load up the amount you need, and you’re all set.
You Won’t Fall Into Debt
With a prepaid card, there’s no worry about owing anyone anything. If you use up the money you loaded on the card, it will simply be declined. You can then load more cash to keep spending.
This comes with the added benefit of being safer for your finances. If your card is stolen, criminals won’t be able to overspend on it.
You’re Always in Control
With prepaid cards, you’re in complete control over how much you spend. Money management becomes easy, as you can only choose to load as much cash as you need. Being disciplined with your finances is tricky, and prepaid cards are an easy solution to this problem.
In order to pay bills, make purchases, or cover expenses, you will need to load your prepaid card – they always start with a balance of zero. This can be used to put a stop to spending, because once your preloaded allowance has been used up, you can’t go over this limit unless you reload the card with more cash.
You’re in control of your spending every day. You can easily manage your day-today expenses and finances by making use of a prepaid card.
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