Are you considering getting a reloadable prepaid card? If so, you are definitely not alone! In fact, in 2015, more than half of Americans obtained and used a reloadable prepaid card. That’s a really huge spike in usage, taking into account the fact that only 19 percent of Americans used reloadable prepaid cards way back in 2008.
Over the years, at least more than a dozen various types of prepaid cards have been introduced, each with diverse features to cater to the different needs of consumers. To make it easier for you to decide if prepaid cards are indeed the best option for you, keep the following interesting facts about prepaid cards in mind:
Prepaid cards share a lot of similarities with debit cards.
While prepaid cards look almost identical to credit cards, they actually don’t have any credit capability. If truth be told, prepaid cards actually have more in common with debit cards. For instance, when using a prepaid card, you’ll be spending your own money instead of the bank’s.
Unlike debit cards however, you are not required to have a bank account to get access to a prepaid card. As long as you are able to load money onto your prepaid card, then you’re good to go. Once all the balance has been depleted, you won’t be able to use the card until you are able to load money onto the card again.
The good thing is since more debit cards are typically associated with major credit institutions like Discover, MasterCard, American Express, and Visa, they can be used and are accepted pretty much anywhere debit cards are honoured. In addition, debit cards can also be used to do online purchase transactions as well as paying the bills.
Having good credit is not a requirement.
For those who have less than desirable or non-existent credit histories, a prepaid card is considered a very good option. In addition, it is also one of the best alternatives for those who have credit issues.
And since prepaid cardholders won’t be able to spend beyond the amount that’s available on the card, it is also perfect for those who want to curb overspending and manage their money accordingly.
Aside from not requiring credit checks, getting a reloadable prepaid card also spares you from the inconvenience and hassle of submitting financial documents just to get your application approved.
Another enticing feature of reloadable prepaid cards is it can help people manage spending while sparing them from those costly transaction charges and fees at the same time.
They are the perfect for those who are trying to manage their money effectively.
Even those individuals who have access to credit cards and bank accounts are quick to admit they can also benefit from the advantages only a prepaid card can offer. As mentioned above, prepaid cards are perfect for those individuals who are trying to manage their money accordingly.
If you want, you can use your prepaid card as a budgeting tool. Case in point: if you want to stick to your grocery allocation for the month, you just load money onto the prepaid card and use it mainly for grocery shopping. Once you deplete all the available balance, then you can stop spending automatically.