Why are Prepaid Cards the Best Alternative to Credit Cards?

It is generally believed that a credit card is a convenient credit product with high popularity in this day and age. Not only is it easy to carry around, it also gives the cardholder a feeling that they’re not actually spending real money. Although using a credit card is indeed an experience that can help satisfy your immediate urge to purchase a product or service, what most people fail to realise, is that credit cards are actually just another form of high-interest loan that you will have to pay back eventually.

Now that more individuals are getting educated about this misconception, financially responsible people are now looking for an alternative payment method that is just as convenient and universally accepted but does not involve the kind of high level interest and expensive fees that are found in traditional credit cards.

Prepaid Visa card answers to this demand. Listed below are a few good reasons to why prepaid card is the most ideal payment option that can be used as an alternative to credit cards.

No More Credit Issues

One of the most obvious reason that makes prepaid card a good alternative payment option is that they open their doors to almost anyone. Prepaid cards are available to all consumers, regardless of whether their credit is bad or if they don’t have any at all. The credit history of the applicant is irrelevant because the money you are spending on a prepaid card is not a loan – it is simply money that you have loaded onto the card. This mitigates the risk of debt because you won’t be incurring charges that you can’t pay back. In addition, as there is no credit check involved, the process of obtaining a prepaid card is much faster than a credit card application. Prepaid card applications are easy, simply and immediate.

Worldwide Acceptance

Just like traditional credit cards, prepaid cards are accepted worldwide. They can be used for purchases made in-store, over the phone, and online, and in some cases, they may even have more acceptability than credit cards.

Easy Access

Prepaid cards are easily accessible and can be easily and instantly applied for online.  Plus, if sufficient deposits are made, it is possible to have the card’s monthly or annual fees waived.  And since prepaid cards only allow the user to spend what’s on the card, it is not necessary to worry about repayments, late payment fees, or other related penalties anymore.

Good for Self-Disciplinary Development

Prepaid cards only allow the cardholder to spend what has been funded on the card.  Therefore, you can only spend what you have deposited, and the possibility of overspending is significantly diminished. This feature can help strengthen the financial discipline of the card holder, and can help develop strong financial habits for the future.