It is undeniable that debit and credit cards have gotten popular over the years. However, not many are aware that aside from the two, there is another new and more popular financial tool that has currently received a very warm reception. Nowadays, many people are seeing the superb benefits only the best prepaid cards can offer.
The best prepaid cards, as the name implies, can only be used if the account has money available. The amount of the transaction (regardless if it’s a merchant or online transaction and ATM withdrawal), is deducted directly from the balance that’s available on the prepaid card.
This also means that once all the balance credited on the card has been depleted, prepaid cards won’t be able to use their prepaid cards for the time being. Fortunately, as soon as you have successfully loaded money on your card successfully, you can use it for ATM withdrawals and purchase transactions asap.
Are Prepaid Cards Your Best Option?
If you are reading this, it is likely that you have heard about prepaid cards and the unmatched benefits they can offer. However, it is also probable that you are thinking if prepaid cards are indeed your best option. Undoubtedly, there are several plastic card options to choose from nowadays.
Come to think of it, credit cards allow you to carry out transactions and withdrawals using the bank’s money. The card is considered “borrowed” in a way. Unfortunately, it does not make credit cards a superior option from the rest. For starters, not everyone who wants to obtain a credit card can get one.
Debit cards on the other hand gives users the option to deduct money directly from their savings accounts. While this feature provides peerless ease and convenience, it won’t do anything for those who want to curb overspending or those individuals who want to manage their money accordingly.
This leaves us with the third best option—prepaid cards. What makes prepaid cards the ultimate plastic card? Below are some of the scenarios where using prepaid cards makes perfect sense.
You don’t like or want a bank account.
While some people are fond of banks, there are also others that don’t like it at all. Some also don’t understand or like how banks work. Others don’t want to deal with all the time-consuming and tedious processes that’s often associated with banks. For these people, prepaid cards can be the best alternative.
Prepaid cards also offer several enticing features that banks offer minus all the hassles. For instance, just like a bank account, you can use your prepaid card to keep your money in a single place, monitor your balance easily, and get your money whenever you want.
You have made serious financial blunders in the past.
Not everyone will have access to credit cards. In other words, even if you apply for one, there is no guarantee you will be granted one. This is especially true if you have made several financial blunders in the past like issuing bad checks or not paying your credit card bills on time.
If you have made those mistakes in the past, it is likely that you will have a slim to zero chance of getting approved. Obtaining a prepaid card is the exact opposite. Since you will not be borrowing any money from the provider, getting your hands on one is as easy as can be.
The great news? You are spared from annoying background and credit checks when you obtain a prepaid card. What’s even better is you will be spending your own money and not borrowing from others. As soon as you deplete all the balance available in your card, your spending also stops automatically.
