What are the alternatives?

15 Sep

If you don€™t want to risk going into debt then a prepaid card could be an ideal solution. A great aspect of these cards is that they have all the advantages of a standard credit card in that you can use them online, in shops, restaurants and withdraw money from cash machines. The main advantage of these types of cards is that you can personally manage the amount of money on the card. They work like top up cards; you preload the card with funds which you then spend as you please and once the funds run out you have to top it up to use it again. This gives the user more control over their spending which is great for anyone who needs to stop bad spending habits.

With prepaid credit cards you are not being given a line of credit so you are not borrowing any money. This means that there are no credit checks and anyone can get one. These cards are well suited to those who have a bad credit score, are too young for a standard credit card or have a low income. If you don€™t have a bank account a prepaid card is a way for you to withdraw money and set up direct deposits. As you are not borrowing any money, but are simply spending whatever you decide to put on the card, you won’t ever have to deal with expensive interest or bank charges or worry about paying off credit card bills each month. However, please note that there may be some hidden charges with these cards such as cash withdrawal fees and some cards might charge you a small amount for issuing you the card or you might even find that some providers charge you a monthly fee. You need to take this into consideration when looking for the best card for you.

Prepaid cards are very secure and can have useful recovery facilities whereby if you lose the card you can order a replacement and any funds saved can be transferred onto the new card. When deciding on the right prepaid card for you it is worth taking the time to research the market.