5 Lesser Known Benefits of Prepaid Cards

Prepaid cards are an efficient alternative to traditional bank issued credit and debit cards. They deliver more than just the ability to reload. Often associated with consumers who suffer with poor credit, prepaid cards are much more, offering a wide range of advantages over a credit or debit card that many people often overlook.

Some of these advantages and benefits that you may not be aware of include: 

Better Control of Spending

It is common for people with credit cards to develop overspending habits, with credit card holders often neglecting to keep track of their expenses until the monthly bills arrive. Unfortunately for some people, that is when they realize they spent more than intended or could reasonably afford.

Prepaid cards make it easier for you to control your budget as it’s only possible to spend funds that have been pre-loaded, limiting your ability to spend to what is available on the card. Prepaid plastics thwart the temptation to spend more than you can afford, as your preloaded card will not let you overspend for an item. 

Enhanced Safety

Prepaid cards can offer a layer of protection against the risk of card fraud, as any potential risk is limited to the preloaded amount on the card, and not linked to an underlying funding source, such as is the case with credit and debit cards, which could potentially ruin your credit score or put the funds in your bank account at risk if your card were lost or stolen and used without your consent. 

Advantages for Travelers

You can pay almost all your expenses; from booking a room to paying for meals. Prepaid cards can also help you keep to your budget by limiting your spending to the funds on the card, something that is particularly important when traveling for pleasure or vacation, as most people tend to overspend. 

Save on Interest Costs

Even when your credit score is sufficient for a traditional credit card, you won’t find one that charges no interest. In fact, for those with a credit score which marginally qualifies them for a credit card, the interest rate will often be higher. Prepaid cards remove this concern, as there are no interest charges.

Protecting Your Credit Score

Prepaid cards are available to all, even for those with poor or no credit history, as there are no consumer credit checks when applying. All you need to do is complete a simple online application, providing photo ID and proof of address documents, to get yourself a prepaid card. Furthermore, all transactions made through the prepaid card will not be linked to nor reflected on your credit report, something which could be beneficial for those who are keen to protect their credit score for the future. 

Conclusion

Now you can see that prepaid cards deliver much more than convenience, they can also help to fight overspending, save you money on card fees and high interest rates, better protect your budget and protect your personal information, as well as helping to improved control over travel spending. You still enjoy the convenience and safety of not carrying too much cash on your person, while protecting your finances in the future.

Please visit www.t24blackcard.com for more information on prepaid cards.

Author: Dumb Writer

I started Dumb Little Man many years ago so great authors, writers and bloggers could share their life "hacks" and tips for success with everyone. I hope you find something you like! How to Password Protect a File or Folder in Mac OS X Leopard

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