What is a Prepaid card?
A prepaid card is a kind of payment card that has a predetermined amount of money loaded onto it. It can be used for bill payment,online shopping and other transactions. Prepaid cards function similarly to debit and credit cards, however you utilize the amount loaded onto the card as opposed to a linked bank account or line of credit.
Benefits of owning a Prepaid card:
No Credit checks:
Unlike a credit card, there is no element of credit when it comes to Prepaid cards. Therefore you won’t be subjected to a credit check. The only information required of you is your name, address and PAN number. This makes it much easier and convenient to get your hands on a prepaid card. This is also the reason for the rising popularity of Prepaid cards. People having problems with credit or finances will not be turned down by Prepaid card companies, unlike traditional banking.
Budgeting:
A Prepaid card is not linked to your Bank account, nor does it have a credit system. After you load money onto your Prepaid card, you can only use that amount. This factor helps people from needlessly spending or slipping into debt. Moreover, it is a great tool to teach people of all ages on managing their finances. Any money saved can be easily transferred to your main bank account.
Great for Daily use:
If you cannot use traditional banking or credit/debit cards, then Prepaid cards are an amazing alternative. You can pay all your bills and utilities, receive money and send money and use it for your daily shopping too. Without affecting credit score or the hassle of traditional banking, you can carry a consequence free card in your wallet.
Security:
When compared to cash or conventional credit cards, prepaid cards provide a higher level of security. If your Prepaid card is lost or stolen it can be simply reported and can be canceled to stop someone from using your money if you misplace them. Additionally, some prepaid cards provide fraud protection, releasing you from responsibility for unauthorized purchases. Since you did not need to provide bank details and one can only use the amount of money loaded onto the card, if in the wrong hands that person will not have access to your main funds.
In conclusion, a Prepaid card is a great financial tool in many ways. It has many uses with no drawbacks. They are secure, convenient, easy to understand and are a great tool to teach others and oneself about financial management and budgeting. When other Banking methods get too complicated, Prepaid cards offer an easy solution.
