Many people choose to use prepaid types of cards rather than traditional credit cards. The use of the prepaid version of the card is highly effective in budgeting and preventing overspending. It is also extremely easy to load and use for any type of financial transactions in person or online.
In the United States, credit card debt from individuals is now at an all-time high. In November of 2017, the cumulative total for revolving credit for all American consumers as 1.023 trillion dollars, according to numbers provided by the Federal Reserve. This number increased by almost 6% in 2017, with the same trend anticipated to continue.
However, this is just the big picture. For individuals with credit card debt, the payment of the interest can be challenging, and this still leaves the principal to pay. By choosing a prepaid card with specific funds loaded to cover expenses, there is never any concern about having to pay interest or to overcharge. These cards often the ideal alternative to prevent becoming another number in the growing statistic.
No Bank Requirement
Credit cards are linked to banks, but a prepaid card does not require a bank account. Many different types of financial institutes can load the card with funds, allowing the user to cash checks and have the balance immediately available through the card.
Not only does this prevent the need to have a bank account, but it also helps to eliminate fees. In addition, these cards do not require a credit check, so even if the individual’s credit score is a concern for a traditional credit card, the prepaid option will be approved.
Practical and Safe
The use of the prepaid card offers a convenient and practical option to manage everyday purchases. Just like cash, these cards can be used for typical in-person purchases as well as your favorite online sites or to pay household bills. Safer than cash and allowing for immediate payment of bills, these cards are a great option for anyone to consider.