Prepaid credit cards – the advantages
There are many advantages to using prepaid cards, so here’s the top five.
- No credit checks – This is because there is no lending involved so your credit history is irrelevant. The issuer will, however, do an identity check.
- You can’t overspend – Your card will be refused if you go over the amount you have loaded onto it.
- Just like a regular credit card, you get a statement with a full list of all transactions on it, so you know what you spent and where.
- Most prepaid cards can be used abroad in ATMs. You can also get cards that reflect the monetary unit of where you’re going. For example, you can get a card pre-loaded with dollars or with euros. These card issuers also tend to offer a preferable rate to a high street bureau de change or even your bank.
- You can get one for your children so you’re sure they’ve always got access to emergency cash. For example, if you have a child who’s away at university and you get one of those ‘Can I have some money please’ calls, you wouldn’t have to go through the hassle of putting money into their bank account. You can simply top up their prepaid card online and it registers instantly.
Again, always shop around for the card best suited to your needs.