This might not be common knowledge but the best prepaid cards work just like a checking account and credit card combined. Just like most credit cards, prepaid cards are issued by various providers and are branded by some of the most established and well-known financial institutions.
The best prepaid cards also come with features but they have one major distinction—they don’t come with credit capabilities. Not only that, there are also international prepaid cards that can be used for those who love to travel outside the country. Aside from using international prepaid cards abroad, prepaid cards can also be used online.
However, while prepaid cards are more similar to credit cards when it comes to functionality, its financial side is more similar to a checking account. This means any withdrawals or purchases done using the card will be deducted directly from the total balance that’s available on the prepaid card.
Prepaid Card Essentials
For many, prepaid cards are deemed the best alternative for transactions that would require the use of credit cards. Prepaid cards are also considered highly beneficial for those individuals who have poor credit scores, have little to no knowledge as to how banks work, and those who don’t have any access to banking services.
Prepaid cards are also considered as the best alternatives available for gift giving as they have beneficial features such as protection in the event of card theft or loss. Nowadays, many people prefer to give prepaid cards rather than cash because of the enticing reasons we have mentioned earlier.
Since you cannot use cash to purchase items online, you would be delighted to know that you can use your prepaid card for merchant and online transactions. Thanks to all the enticing benefits they offer, it’s not surprising that prepaid cards have evolved into one of the fastest-growing financial tools in the market today.
How to Pick the Best Prepaid Card for Your Needs
You would be happy to know that choosing the best prepaid card is not rocket science. When choosing the best prepaid cards, keep the following basics in mind:
Look into your spending habits and analyze your spending habits before deciding on the prepaid card to pick. As a general rule of thumb, choose a card that will only charge you for transactions you don’t often do.
For instance, if you use your cards often, opt for a prepaid card that will waive fees each time you exceed the card’s monthly transaction limit.
Another great tip would be to pick a prepaid card that comes with a structure that’s easy for you to understand. You need to remember that some prepaid card providers use a flat-fee model while others will charge you for all the transactions you carry out. Check your monthly card activities and assess which of the two would be a great option for you.
Last but not the least, it is also important that you carry out a thorough comparison of the prepaid cards you are considering before you decide which prepaid card to get. Fortunately, comparing features will require very little time. However, it will save you a massive amount of money in the long run so it is all worth it.