Through the years, debit and credit cards have become quite popular. However, not many people are aware that there’s another recent FinTech innovation that has captured the hearts and wallets of users—the best prepaid cards. Since it’s prepaid, money has to be loaded onto the card before you can use it.
This means if the prepaid card is going to be used for purchase transactions and ATM withdrawals, money has to be loaded successfully onto it first. Once the balance on the best prepaid card has been depleted, any transactions using the card will be temporarily declined for the time being.
However, as soon as money has been loaded onto the card, users can immediately use it for purchases and withdrawals. The great news is there are several easy and convenient ways money can be loaded onto the card. Some of the most popular ways of loading money is through secure online portals.
Prepaid Cards: Are They Your Best Option?
For those who are thinking about getting a prepaid card, it is likely that you are looking for some information that can help you decide if it is the best and most suitable option for you.
With so many other financial innovations now available at one’s disposal, choosing the best option has become quite tricky. That said, it is important that you know the important facts about the plastic cards you are considering so you can compare.
For instance, those who are using credit cards have the opportunity to earn rewards and enjoy perks. Credit cardholders also have the option to pay for purchases and pay for them at a later time.
Conventional debit cards on the other hand gives users the option to have the amount of their transactions deducted from their accounts directly. So, the question remains: is a prepaid card a good option for you? Read more and find out.
- You want to learn more about financial tools. If you are thinking about getting a credit or debit card sometime in the future, getting a prepaid card would be a great idea as it will allow you to practice how to use plastic cards. You can also start using prepaid cards as a good start if you want to master the art of using plastic cards.
- You want to stop overspending and manage your money better. Looking for a great budgeting tool? You can never go wrong with prepaid cards. Unlike other plastic cards, prepaid cards can be an amazing ally if you want to manage your money better. When you use prepaid cards, you won’t be able to carry a negative balance. In other words, once you deplete all the balance in your card, it’s gone. You can’t use it for transactions for the time being until such time that you have successfully loaded money onto the card.
- You have no credit history or you have a less than desirable one. Individuals who won’t qualify for other plastic cards often turn to prepaid cards if they don’t have a good credit history. Unlike other plastic cards like credit or debit cards, prepaid cardholders won’t be able to borrow any money from the bank. This can help ensure users won’t spend beyond their means or accumulate mounting debts.
- You don’t like getting a bank account. Individuals who are looking for a great alternative to credit or debit cards can use prepaid cards as an option. What’s even better is prepaid cards can be used to carry out some of the most basic bank transactions without any stress. For instance, you can also use your prepaid card to keep your money in one place, monitor your balance, and use your money for purchase transactions and ATM withdrawals.