Nowadays, more and more people are relying on reloadable prepaid cards for their day-to-day transactions. Taking into account all of the benefits this amazing Fintech innovation offers, its popularity is not exactly surprising.
As the name implies, a reloadable prepaid card is a card you can use for purchase transactions and ATM withdrawals. However, money has to be preloaded on the card before you can use it.
Unlike credit cards that come with credit capabilities, prepaid cardholders will use the money that’s been loaded on the card for their transactions. Transactions are deducted directly from the balance available on the card.
Once all the balance in the card has been depleted, transactions will be declined. However, you can immediately use the card for transactions again once you have successfully loaded money onto the card again.
How to Manage Your Reloadable Prepaid Cards Wisely
While reloadable prepaid cards are easy to use, not many know how to use them accordingly so they can maximise all the amazing benefits they offer. If you want to manage your reloadable prepaid cards appropriately, here are some beneficial tips you need to keep in mind:
Use them to effectively manage your finances
Do you find sticking to the budget you have identified extra challenging? Do you always run out of money before the next payday? If you answered yes to any of these questions, getting a reloadable prepaid card might be a great option for you.
To manage your finances better, you can try using one prepaid card for a specific monthly expense. For instance, you can have one reloadable prepaid card for rent, another one for allowance, another one for transportation, etc.
By using this technique, you’ll be able to allocate a specific amount without the risk of spending beyond your means or what you can afford to. If all the balance in the card has been depleted, you have the option not to load it again until you have the money.
Use them when you travel overseas
Another way to use your reloadable prepaid card wisely would be to take them with you when you travel overseas. Prepaid cards can be used for payments as well as purchase transactions and ATM withdrawals.
Prepaid cards can also be used to pay for local transfers, plane tickets, and hotel or other accommodations. Using your reloadable card to pay for those transactions is not only convenient, it might also entitle you to rebates, promos, and other discounts.
Another enticing benefit of bringing and using cards overseas is you won’t have to carry wads of cash with you as you move from one place to another. You can keep your money securely in your prepaid card and you can just request for blocking in case your card gets lost or stolen.
Use your prepaid card as a piggy bank
If you want to save money, loading it in your reloadable prepaid card would be a good idea. This is especially helpful for those who don’t have access to banks or those people who don’t like dealing with banks.
Since you have the option to withdraw money at ATMs, reloadable prepaid cards is no doubt a convenient tool. Using a reloadable prepaid card is also a practical idea if you like purchasing items online.
Using a reloadable prepaid card is also ideal if you are wary about getting your personal or financial information compromised. Since your reloadable prepaid card is not linked to any bank or savings account, there is no risk of shady characters getting access to your confidential data in case your account gets compromised.