Prepaid debit cards

What is a prepaid debit card?

More people are now opting for plastic cards as a means of payment, be it credit or debit cards, for their convenience. But with all the credit cards, debit cards, and prepaid cards available, it can be confusing for some. Using prepaid debit cards is completely different from using credit cards; while a credit card allows you to "borrow" money to make purchases, a prepaid debit card is linked to your savings or checking account from which it gets money.

A prepaid debit card requires you to top up in advance before you can use it. Therefore, you can't spend more than what you've already loaded to the debit card. This avoids overspending because you can't spend money that you don't already have.

Why should I apply for a prepaid debit card?

If you are worried about your credit history or getting into credit card debt, you can always opt for a prepaid debit card. All you have to do is choose the prepaid debit card of your choice, load it up, and start paying for everything you need—bill payments, shopping, everyday purchases, or travel expenses. Prepaid debit cards are either a MasterCard or Visa, making them available to use almost everywhere.

What are the benefits of having a prepaid debit card?

If you haven't yet decided on whether or not you should get a debit card, here are 5 benefits that will help make up your mind.

It’s safer to use a prepaid debit card compared to cash. Unlike cash, if you register your prepaid debit card and it’s lost or stolen, you will be able to recover the lost amount.

It’s convenient. Getting a prepaid debit card is easy as it doesn’t require a credit check or bank account. You can also use it to shop anywhere even when you travel overseas.

It helps control spending. With a prepaid card, you only spend the money you loaded on the card. If you’re neither thinking of getting a loan in the future nor concerned with building a credit history, then you can use a prepaid debit card without worry.

 

It can also teach kids about money and how to manage it. Since younger people tend to overspend and often don't realize the importance of saving money and tracking their spending, a prepaid debit card can teach them how to spend within set limits.

It prevents data from being stolen. With the prevalence of scamming, phishing, and unsecured websites on the internet, prepaid debit cards are a good stopgap because they're not linked to any personal data, like Social Security numbers or bank account data. This means you have no information that may be stolen.

With prepaid debit cards, you can shop conveniently anytime, anywhere. You can learn to manage your spending easily while also protecting yourself against consumer fraud.

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