Finance Fox

Business

5 Key Benefits of Using Prepaid Cards

February 24, 2017 by admin in Business, Credit Cards, Tips

image1

 

Key Benefits of Using Prepaid Cards

Visa prepaid card can be a more convenient alternative to traditional credit and debit cards, often being recognised as being safer and cheaper. Below are five key benefits of using prepaid cards:

1. Credit Check is Not Required

For applicants with non-existent or bad credit ratings, getting an approval for a credit card application can be both time consuming and troublesome. Most prepaid cards providers generally do not execute a credit check on prepaid card applicants, hence almost anyone can apply for one using it to purchase goods and services anywhere that accepts Visa or MasterCard. Prepaid cards, unlike credit cards, also tend to do not report user transactional activities to credit bureaus, meaning that prepaid cards will not contribute to building or damaging the user’s credit score.

2. Prepaid Card Can Be Used as a Budgeting Tool

Visa prepaid card can be particularly useful as a self-budgeting tool. Cardholders can simply preload a certain amount of money onto a card for their monthly or weekly expenditure, limiting what can be spent to the value loaded on the card. For those who wish to assist a spouse or family member (such as university students or elderly relatives) with their personal financial management, prepaid card can be a highly helpful apparatus allowing the expenditure to be monitored and controlled should it be required.

3. No More Overdrafts

Over draft fees can be a frequent annoyance when using credit cards, something that won’t happen with a prepaid card. This is because prepaid card holders can only spend the amount loaded to their card. If the prepaid card has insufficient funds on it, further transactions will simply be declined, with credit never being extended under any circumstances.

4. Prepaid Cards Can Be Used Online and In-store

A Visa prepaid card that bears the Visa mark can be used to make payments online or instore anywhere these are accepted, just like a traditional credit card.

Many prepaid cards will also allow for bill payments, including both one-off payments and recurring payments, such as utility bills, providing that your account has enough funds on it to cover these.

5. Absolutely No Credit Risk

General transactions made through prepaid cards will not be reported to a credit bureau, this means that users can make big item purchases and it will not show up or affect their credit scores. The drawback of this is that a prepaid card will only help protecting cardholder’s credit score, but not improving it.

With these advantageous attributes, prepaid card is a highly recommended alternative to traditional credit or debit cards. Prepaid card offers more financial freedom, privacy and independence, which can be vital when it comes to personal financial management.

Visit www.t24blackcard.com today to learn more about prepaid cards and its benefits.