If this is the first time that you are considering a prepaid card, then you should learn everything that you can before you finally decide. There are certain advantages of using prepaid cards, but there are also other people who are not comfortable using them. The choice will be yours to make. So to help you out here is the most important information that you need to learn about prepaid cards.
All About Prepaid Cards
A prepaid card is an alternative bank card that will only let you spend the money that you have loaded onto the card. This works like a debit card and it is also accepted at any merchant that allows Visa, MasterCard, or Discover Card payments. Many people prefer to use prepaid cards than cash. This is safer and more convenient. It works like your pay-as-you-go mobile where you can reload it and use the same amount of money that you topped up.
Prepaid Cards: Who Is it For?
Prepaid cards like the ones offered by Vanilla Gift are best for those who do not have or cannot have a bank account, as well as to individuals who want to control their spending. Most prepaid card companies do not require credit checks. This is why it is easy to get one. If you do not have access to a bank account but you don’t want to bring cash anywhere you go, then prepaid cards are the best solution for you.
You can never spend more than what you have on your card because even if you try, the transaction will be declined, but without a free. Usually, those who are on a fixed income, as well as teenagers, are the ones who can greatly benefit from prepaid cards. You can also give prepaid cards from Vanilla Gift to your family members who are visiting from other countries. All they need to do is follow the vanilla gift card activation process and they’re good to go!
The Limitations of Prepaid Cards
Even though prepaid or gift cards are very easy and convenient to use, you have to remember that it has limitations. This is not like your conventional credit or debit cards. They do have online services but they lack standard bank services like withdrawing or reloading cash without a charge. Also, the money that you have in your prepaid card will not gain interest. So if you are planning to save money for the future while earning high-rate interests, prepaid cards are not the best choice for you.
However, what’s good about prepaid cards is that it will never affect your credit history. So if you do not have a credit card or a checking account but you want to bring cashless money with you, then you should consider getting a prepaid card soon!