If you are one of the many still trying to recover from the huge drawbacks of credit card usage, you’d surely find the best prepaid cards a whiff of fresh air. Just like credit cards, the best prepaid cards offer ease and convenience that’s hard to resist minus all the exorbitant fees credit cards are known for.
That being said, it’s not really surprising why many consider prepaid cards the consummate credit card alternative. Aside from peerless ease and convenience, prepaid cards actually offer so much more. Some of its top benefits include:
You are spared from those time-consuming credit checks
Typically, when you apply for a checking or savings account, banks will conduct credit checks before approving your request. The same is true when it comes to credit card applications.
That means if you have made financial mistakes in the past like not paying your credit card dues on time or issuing bouncing checks, the chances of getting approved is very slim.
Fortunately, getting a prepaid card is fast, easy, and straightforward. For starters, prepaid card issuers won’t conduct traditional credit checks. That means even if you have made financial mistakes in the past, that won’t affect your chances of getting a prepaid card.
You’ll have the option to shop online
One of the enticing benefits prepaid cards offer is the ability to shop online. For many people, the ability to shop online offers convenience and ease that’s hard to match. Come to think of it, you won’t have to get dressed, deal with annoying traffic, spend money on gas, browse through endless aisles, or deal with grumpy sales clerks.
All you need to do is visit the sites, compare prices, and make the purchases. Oftentimes, you can accomplish your shopping in just minutes with just a few clicks of the mouse.
Apart from ensuring you are spared from all the inconveniences and hassles associated with shopping, using a prepaid card can also help warrant you won’t go into debt or spend beyond what you can afford.
In addition, your prepaid card can help guarantee you won’t mismanage your money since you only get to spend the available balance on the card—no more, no less.
You’ll have a very effective budgeting tool
For many people, going into debt can send them into a financial tailspin that’s hard for them to recover from. If you have the tendency to spend beyond your means or if you are a compulsive spender, getting a prepaid card might be a good idea.
Unlike credit cards, prepaid cards don’t have credit capabilities. That means you only get to spend the balance that’s available on the card. Prepaid cards can also act as effective budgeting tools as your spending will be limited to the amount available on the card.
Undoubtedly, for people who find it very challenging to manage their spending, a prepaid card can be their most helpful ally. When you use a prepaid card, you won’t be able to use the card for the time being once the balance has been depleted. This feature should help keep your spending in check and put your spending habits back in line.