The use of prepaid cards has become recognised as a secure and convenient alternative payment option to supplement your traditional payment methods. In addition to granting its user a supplementary option to using cash, prepaid cards also perform comparably to conventional debit or credit cards. This means that prepaid cardholders can make in-store purchases, withdraw cash from ATM machines and execute online purchases as traditional credit cardholders can perform. Presented below are five fundamental reasons why you should consider applying for a prepaid card today:
1. Credit Checks are not required
Have you ever wondered: Will a prepaid card application appear on my credit report? The answer is no. In case you may be in the situation of having bad credit or otherwise no credit history to present, securing approval for a credit card is troublesome or otherwise unattainable. This is where prepaid cards are an asset to use over other options, as they do not require a credit check or any additional financial history. The lowered requirements to obtaining prepaid cards makes them an appealing and convenient option as almost any interested applicant can acquire one to perform the same tasks and be used in the same locations that a regular Visa or MasterCard can be used.
2. Prepaid Cards Encourage Budgeting
The use of prepaid cards as a budgeting method makes it simple for cardholders to follow both their intended weekly and or monthly budgets. This is due to the advantage of being able to set a shopping budget where you can easily load the necessary amount of money into the card to fulfill the required expenditures. Additionally, if a prepaid card user desires to financially provide support to a friend or acquaintance, they’re able to safely and securely allow them access to money while guaranteeing that they do not overspend beyond the formerly established budget.
3. Overdraft Fees are not required
One of the more troublesome features of using a debit card is the risk of over-drafting and the consequent charges that it will incur on the customer. Getting charged for overdrafts are not possible when using a prepaid card, as you are only capable of spending the fixed amount pre-loaded onto the card. This ensures that the cardholders purchase will simply be declined in the event that there is insufficient value in the prepaid card and no additional costs will be incurred. Check out www.t24blackcard.com to learn about other cost your save from using a prepaid card.
4. Automatic payment of Recurring Bills using a Prepaid Cards
Prepaid card brandishing a Visa or MasterCard logo operate identically to customary credit cards and may be used in all the same venues including but not limited to online and brick-and-mortar stores. An additional functionality of prepaid cards is that you are able to establish payments for both one-time and recurring transactions required through monthly or annual expenditures.
Take note that sufficient funds are retained on the prepaid card for any recurring payments necessary. Since over-drafting is not possible when using prepaid cards, it is necessary that you maintain sufficient funds to pay for a repetitive expense you may use it for, such as phone bills and utility payments otherwise it may be cancelled by your merchant.
5. Unattainable Credit Hazards Using Prepaid Cards
Credit bureaus are not notified of any financial transactions incurred through using a prepaid card; this means that your purchases and dealings will not adversely affect your credit score or history in any way. Through providing more independence, self-regulation, privacy and protection than regular debit or credit cards, prepaid cards are a functional and effective solution for customers seeking efficiency in today’s modern world.