Dealing with finances is often more difficult than not. From budgeting your money to keeping track of your expenses, there are many things you have to be wary of when spending. Today, you are no longer limited to cash as several forms of cashless payments are available due to advancing technologies. Credit cards, in particular, are one of the most preferred forms of payment because of how easy they are to use, as well as the variety of rewards programs that one can get.
While credit cards have almost become a staple for everyone today, one of their most significant drawbacks is the risk of uncontrollable spending, which may lead to debt. Thus, an ideal replacement would be a debit card or prepaid visa card, which acts similar to a credit card. It differs in the way that you have to load money into the card before you can use it. Though prepaid cards may not be as popular as credit cards, they have several advantages that may convince you to get one now–if you do not already have one!
Again, the unbeatable advantage of a prepaid card is that you can control your spending habits and develop more financial discipline. You no longer have to worry about falling into debt since you can only spend whatever you put in your card. If the card runs out of money and you accidentally swipe it, you still do not have to worry since it is not linked to any bank account.
In a sense, you can think of the card as something that holds your money, so you can purchase things even without cash, not running the risk of overspending. You can reload it as frequently or as rarely as you like, which makes it an effective budgeting tool.
No Credit Checks
When applying for other banking instruments, such as a credit card, checkings account, and savings account, banks will take a look at your credit score. If you have a low credit score, your chances of getting approved for these instruments are minimal. However, with a prepaid visa card, credit checks are not a prerequisite for approval. Additionally, you do not have to worry about interest charges since you are using your money and essentially not to borrow credit.
Similar to credit cards, prepaid cards are widely accepted in many instances, which explains why they are slowly becoming a popular option. You can use them to shop online or in physical stores, pay your utility bills, and even in other countries where Visa is accepted. Most cards will also allow you to schedule your payments automatically, so you do not have to worry about forgetting to fulfil your bills!
Easy to Use and Track
Prepaid cards are just as easy to use as credit cards as you can easily add money to them through direct deposit. Additionally, you can use them to withdraw from ATMs using a PIN, so if you are on the run and forgot to bring some cash, they will come in handy as well.
Aside from this, you can easily track the usage of your card through online means, allowing you to stay updated with your balance and aware of your purchases or transactions. Although there is no overspending as you already have the control, it will still help to have a copy of your expenses, along with their dates, as a record.