Ever catch yourself worrying about bills coming through your mailbox? Do you have the discipline required to monitor your own spending? Are you able to stick to an annual household budget that you have planned out and outlined?
Controlling your financial affairs is just part of the mix of your personal credit card management. With every passing month, prepaid cards becoming more and more popular. They even tie in the philosophies of better money management. The following are the top 9 reasons for prepaid card consideration:
1.) Enforced Discipline
If you utilise a prepaid card instead of traditional debit or credit card, you eliminate a credit facility that you will be tempted to overuse. The card might not have to worry about repayment of money spent, but you definitely have to. Prepaid cards are the perfect solution for those who are tired of getting hit with huge overdraft fees. There is never a danger of overdrawing the account with a prepaid card because no further transactions will be permitted once the funds loaded in the card is depleted. As a tool to enforce disciplined spending habits, a prepaid card is perfect.
2.) Greater Control of Spending
As stated above, prepaid cardholders are only allowed to spend the amount that is loaded onto the card, this means money spent is actually money that belongs to you. Thus, you will be more mindful when spending it. This added awareness may cause you to be more cautious of it and look for the best deals with considering purchases. A prepaid card may be worth a shot if you struggle to keep your spending under control. With prepaid cards, the moment the stored value is extinguished, further transactions will simply be refused. Never again will you spend more than you have at your disposal.
3.) Enhanced Privacy
A prepaid card application involves no credit check. In addition to providing basic personal identifying documents (i.e. passport, national ID card & address proof), no supplemental information is required to complete the application process. You won’t have to worry about your identity being compromised as it is basically nonexistent. No potential damage to your credit score will occur as there is no credit check involved in your prepaid card application process.
4.) Consumer Protections
The chip and PIN security system, like you may have seen on traditional debit and credit cards provide further protection to your prepaid card. In the unfortunate event that your card is stolen or lost, simply call your prepaid card service provider. They will freeze your prepaid card account. Some service providers are even equipped with a service that will expedite shipment of a new card to you.
5.) Easy Spending and ATM Withdrawals
Prepaid cards can be used to make purchases online, in-store, and wherever traditional debit and credit cards are accepted. Prepaid cardholders are also given the ability to withdraw cash from ATM machines found around the world.
6.) Reloading Preferences
A variety of methods can be employed to load and reload a prepaid card. The convenience arises from not having to go to the store or bank each time you have spent all the available funds in your account. As these methods are provided by the prepaid card providers, we advise all future prepaid card carriers to check with their service providers as to which loading means are available to them.
7.) Absolutely No Credit Risks
There will never be a situation where a prepaid cardholder ‘maxes out their credit line’ due to use of a prepaid card. As previously explained, prepaid cards are not tied to any credit service or facility. Since no credit checks are required for the prepaid card application, your credit score will never be requested or disturbed. This could prove to be hugely beneficial for those who are in the process of building or strengthening their credit score for future plans.
8.) Easy Monitoring
Equipped with a phone or other device with online access, all activity and usage of the prepaid card can be tracked. With this measure in place, it becomes easy to control and monitor all spending. Your platform of choice may also be able to provide you with reports that are generated daily, weekly, or monthly, allowing you to maintain records and account for all outgoing and incoming funds.
Now that you understand the benefits of owning a prepaid card, you should consider getting one today!