Prepaid cash cards look like credit and debit cards and they offer the same ability to purchase products and services but with a crucial difference – you can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility.
How A Prepaid Cash Card Works?
You will be given a Pin number when you purchase a prepaid cash card, and once money has been credited, it can be used in the same way as a debit or credit card. For examples, online or telephone purchases. Money can be reloaded onto a prepaid card by cash at a bank, Post Office, or via a bank transfer.
Who Needs A Prepaid Cash Card?
For those who lack the discipline to manage their money, prepaid cash cards can be a lifesaver in that they don’t let a user spend more than he or she has. It is a great idea to get a prepaid cash card if you have a poor or no credit history whatsoever, and have a trouble to get approved credit cards.
What Are the Reasons to Apply a Prepaid Cash Card?The following are the advantages and benefits if you have a prepaid cash card on hand:
- No credit checks, which means you can get a card without worrying about your credit history. All prepaid card providers will carry out an identity check to confirm you are who you say you are.
- To budget for yourself or help to manage your children's spending. Like a credit card, you get a full breakdown of spending on the card so you can see what has been purchased, who from and when.Thus, you will improve your credit rating without running the risk of acquiring any debt.
- With a prepaid card, there is no chance of spending too much as you are limited to the amount you put on your card.
- Prepaid cash cards are a good option if you are going overseas. They are popular with students heading off on gap years and children who go abroad on school trips as parents can reload them conveniently and efficiently. In addtion, prepaid cash cards offer a good alternative to travellers' cheques as they are safe and you will probably be offered a better rate of exchange as you spend.
Should You Get a Prepaid Cash Card Now?
Prepaid cash cards provide a great answer to problems dealing with bad credit, no credit and uncontrollable spending. By owning and using a prepaid credit card, a consumer can easily establish credit, build up or improve a credit rating and avoid falling into debt at the same time.
If you have decided to apply for a prepaid cash card, u may click the following link to search for further information: http://www.consumercreditcardguide.com/prepaid.php
No matter what you decide, practice smart spending and saving habits. Calculate your month-to-month expenses and plan for a small allowance for personal spending. Open up a savings account and cancel off any extra expenses that you have. Use your prepaid credit card as a stepping stone to better credit and more responsible financial behavior.
Reference Links:
No comments:
Post a Comment