Prepaid cards are basically what in India is
called a debit card. These cards allow you to spend as many funds as you want
just like a credit card does. However, it differs from a credit card in the
fact that you will pay the money from before and then once the money paid has
been exceeded you are no longer allowed to use the card. This is a great way to
save on your funds and it brings a number of advantages with it.
- Cashback
This is the newest and perhaps
biggest advantage of pre-paid cards. This can be used for several occasions,
especially if you want to save over spending. Therefore, if you feel like you
do not want to pay in advance and you want to use the money for an investment,
you can use this card. Through this, you can get your cash back and use it for
an investment.
- No credit check
This has been one of the biggest
problems for many people as they hate being credit checked everywhere. You can
easily apply for this card, and make any amount of purchases, without it being
financial recorded on your credit report. With a prepaid card, this hassle is
eliminated.
- You will never be in debt
This is perhaps the reason why
credit checks were made and now the solution has also come in the form of a
pre-paid card.
- You are in control
No more do you have to worry about
how much you are spending. You can just spend how much you want to a fixed
limit. Therefore, when you meet that limit, your access to the funds will
automatically get cut. Therefore, if you are aware of the limitations of the
card’s expenditure, then you will be aware of how much you can spend.
- Can be used for very young people
Thirteen and fourteen-year-olds can
get a prepaid card. This was unheard of for safety reasons and much more even a
decade back. Your child can get his own account and will make all his
transactions on his own rather than having to bear the burden of carrying cash
everywhere. Also, he cannot carry a check so this makes it incredibly easy for
you as a parent.
- Act as a bank account
Finally, prepaid cards can even act
as a bank account. This will mean a lot of convenience for a lot of people as
they can now have wages paid on their card.
With all of these advantages of a
prepaid card and possibly a lot more advantages, we have not spoken of; it
would be nonsensical to not get a prepaid card. Also, there is almost nothing
to lose in getting one either.
