Prepaid Cards: Can They Help You Build Credit?

prepaid cards in Singapore

Prepaid cards are the newest addition to the plastic card family. Just like its other counterparts, prepaid cards provide benefits that are truly hard to miss. In fact, for many, prepaid cards have become the consummate alternative to carrying huge wads of cash.

While prepaid cards look just like credit or debit cards, they have one thing that sets them apart from the rest—they are not connected to any bank accounts. As the name implies, money has to be loaded onto the card first before it can be used for any purchase transactions or ATM withdrawals.

Since prepaid cards are not linked to any bank account, you can’t run up debts on them. In other words, your spending and withdrawals will be limited by the balance available in the card. As soon as the balance has been depleted, the spending stops automatically.

For those who love shopping online, prepaid cards can be a truly wonderful alternative to credit or debit cards. Since your prepaid card has no credit capacity, in the event that it is compromised, fraudsters will be limited to the balance available on the card and will not have access to your bank accounts. If anything, that’s a security feature many people just can’t resist.

Over the years, prepaid cards have become quite popular and have shown no signs of slowing down. However, not many people are truly aware of what their prepaid cards are capable of and how they maximise its use. Below are some of the prepaid card basics you need to know.

Can prepaid cards help me build credit?

As mentioned earlier, prepaid cards are not in any way connected to bank accounts. More importantly, when you use your prepaid cards, you are not borrowing or repaying money. That being said, using your prepaid card won’t be able to help users build credit.

In essence, to build credit, you need to borrow money and repay it back. The creditor will then report your payment record to credit reporting agencies. With prepaid cards, you will be using money that’s available on the card. In other words, all your transactions (purchases and withdrawals) will be deducted upfront from your card’s balance.

Is it easy to obtain prepaid cards?

One of the many things people love about prepaid cards is they are very easy to obtain. Why? Unlike credit cards, prepaid cards don’t come with any credit capabilities. In other words, they pose no financial risk whatsoever to the issuer.

Those who want to obtain prepaid cards won’t have to submit any financial documents or any personal and confidential information. In addition, you won’t also be subjected to any stressful and time-consuming background checks. In essence, obtaining a prepaid card is basically effortless!

Where can I use my prepaid card?

Typically, network-branded prepaid cards also carry the logo of the financial institution they are associated with. That said, it is often accepted and honoured at any merchants, establishments, and ATMs where the financial institution it is associated with is honoured. In addition, prepaid cards are also honoured by most merchants and sellers online.

For many, the ability to do purchase transactions online cannot be overstated. If anything, it will save you a significant amount of time, effort, and even money. That means you won’t need to get dressed, spend money on gas for your vehicle, brave the traffic, and deal with grumpy sales clerks and fellow shoppers.

However, more than anything, it’s the peerless ease and convenience of online shopping that makes it endearing to most people. Come to think of it, all you need to do is visit the website you want to purchase from, pay with your prepaid card, and just wait for your purchase to be delivered to your doorsteps. Now that’s ease and convenience you can’t find anywhere else!

Using Your International Prepaid Card: Your Quick Guide

prepaid cards in Singapore

Without doubt, travelling can be exciting and fun. However, without sufficient planning, it can also be both chaotic and stressful. This is especially true if you don’t have the financial aspect covered accordingly. Fortunately, this is where your international prepaid card can come in handy.

Whether you like it or not, withdrawing money, exchanging currency, and using cards has always been an integral part of travelling overseas. Nowadays however, using international prepaid cards has become an increasingly popular alternative as it can help warrant your trip will go as smooth sailing as possible.

Taking Your International Prepaid Card with You

International prepaid cards are fast becoming the preferred medium for those who travel overseas on a consistent basis. Undoubtedly, it is deemed generally safer compared to carrying wads of cash from one place to another. For many, it is also undeniably way more convenient than using traveler’s checks.

With an international prepaid card, you are also spared from stressing about where to get cash when you need it and you can easily withdraw money from international ATMs associated with your card. Not only that, with your international prepaid card, you can also expect to enjoy low conversion fees when you load a foreign currency.

Of course, withdrawing money through international ATMs will have corresponding fees so that is something you should take into account at all times. As a general rule of thumb, it is also considered prudent to know the fees for your card transactions like withdrawals, conversion fees, etc.

Benefits of Using International Prepaid Cards

International prepaid cardholders have no shortage of reasons why they love this new and exciting financial tool. Aside from the peerless convenience and ease they offer, prepaid cards are also accepted and honoured by countless merchants and ATMs worldwide.

If you’re particular about sticking to the budget you’ve set, you’ll be delighted to know your international prepaid card can help you effortlessly achieve said objective. As the name implies, money needs to be loaded onto the card first before it can be used. That means you have control over the amount you are willing to spend.

Aside from the freedom to load any amount you want, your international prepaid card can also help you stay on track when it comes to your spending. Come to think of it, it would be tempting to be loose about your spending when you’re travelling.

Your international prepaid card can help you stay on track since you can no longer use it once all the balance available on the card has been depleted. From there, it would be up to you if you’ll reload money on the card again or you’ll put a halt to your spending and stick to the budget you’ve set.

Another amazing benefit that has endeared international prepaid cards to many is the convenience, ease, and peace of mind they offer. Since international prepaid cards are not linked to any bank or checking accounts, you won’t have to worry about your accounts being hacked when you lose the card or misplace it.

Also, since your international prepaid card is not linked to your bank account, you are spared from the risk of having the money in your account withdrawn or tampered with. At the most, the only amount at risk is the amount that’s available on the card and nothing more.

In line with this, you also have the option to load only an amount you’re comfortable with to the card and just reload each time the balance has been depleted. Fortunately, just like most transactions using your international prepaid card, reloading money onto the card is quick, easy, and straightforward so it’s a win anyway you look at it.

Peerless and Exciting Benefits Reloadable Prepaid Cards Offer

prepaid cards in Singapore

Nowadays, cashless transactions have become the norm. That being said, reloadable prepaid cards have also become very handy. With all the benefits reloadable prepaid cards have to offer, it’s no surprise it has become one of the most popular alternatives among the plastic cards currently available.

The exciting and peerless benefits only reloadable cards offer has helped them earn their rightful place in the hearts and wallets of many. If you’re like many people, you’re probably considering getting a reloadable prepaid cards but unsure if it’s right for you. To help you make a smart decision, we’ve listed down all the unbeatable benefits  only reloadable prepaid cards can offer.

The Enticing, Exciting, and Exceptional Benefits of Prepaid Cards

You are spared from annoying credit checks. Those who have applied for credit or debit cards can definitely attest how tedious and time-consuming the application process can be.

Apart from the fact that you’ll be required to submit financial documents and financial information, you’ll also have to undergo those annoying and tedious background checks.

This also means that if you’ve done a few financial mistakes in the past like not paying credit cards on time or issuing bouncing checks, you can expect your chances of approval to be very slim.

The good news? Getting your hands on a reloadable prepaid card is the exact opposite. Obtaining a reloadable prepaid card is quick, easy, and hassle-free!

You can use it as an effective budgeting tool. Most people who use credit cards often find it very challenging to manage their spending. This is especially true for those who have a very high credit limit.

While a high credit limit is deemed an advantage by many, it can be a disadvantage for those who are trying to curb overspending or those people who are learning how to manage their money accordingly.

It is important to keep in mind that if you don’t use your credit cards the right way, you can end up accumulating mounting debts that might take years for you to recover from. Thankfully, with a reloadable prepaid card, accumulating mounting debts is something you can easily avoid.

Unlike credit cards, reloadable prepaid cards don’t come with any credit capabilities. What this means is your spending will be limited by the balance that’s available on our card. Once all the balance in the card is gone, you won’t be able to use the card until such time that you load money onto the card again. Undeniably, it’s a very helpful tool for those who want to keep their spending in check and would like to manage their money better.

You can use it for online transactions. While shopping is considered an enjoyable leisure activity by many, others see it as a tedious task they prefer not to do. Come to think of it, shopping can require a lot—you have to get dressed, drive through the traffic, and make your way through crowded stores. Not only that, you also have to interact with other buyers and salespeople.

Thankfully, there is a better option available in the form of online shopping. With your reloadable prepaid card, you can easily purchase whatever it is that you want to buy without leaving the comforts of your home or office.

All you have to do is visit the site you want to purchase items from, key in your prepaid card number, and wait for the item to be delivered right to your doorsteps. Undeniably, that’s ease and convenience you just can’t miss!

The Rise of the Mighty Reloadable Prepaid Cards

prepaid cards in Singapore

In today’s modern, fast-paced, and technology-driven world, people have it easy compared to many decades prior thanks to awesome and helpful inventions and technology breakthroughs.

For instance, many years ago, people always had to pay for almost all of their purchases with cash. Nowadays, cashless payment transactions have become the norm. In other words, people now use plastic cards like debit, credit, and reloadable prepaid cards to pay for the majority of their purchases.

That being said, it is also safe to assume that it has become very common for people to use credit, debit, and reloadable prepaid cards for ATM withdrawals as well as purchase transactions, regardless if it’s online or otherwise.

Currently, plastic cards like the reloadable prepaid cards have become a staple in the day-to-day transactions of today’s modern man.

The Impressive Rise of the Mighty Reloadable Prepaid Cards

While they are the latest addition to the growing plastic card family, reloadable prepaid cards have easily earned their rightful place in the hearts (and wallets) of many people nowadays.

Thanks to their unbeatable benefits, reloadable prepaid cards have also experienced a gargantuan rise in both usage and popularity. It’s also safe to assume, it has shown no signs of slowing down.

If you are like many people, it is highly likely that you’re also considering getting a reloadable prepaid card if you don’t have one yet. If you’re not really familiar with this amazing and ingenious financial tool, the following basics should help you get to know it a tad bit more.

You won’t need to go through background and credit checks just to get one.

Without doubt, background checks are time-consuming, tedious, and just downright annoying. However, they are considered an integral part of both debit and credit card applications. The same rings true for checking and savings account applications.

Not only that, apart from scrutinising your background and credit histories, some issuers of debit and credit cards will also take into account your employment history as well as other personal information before their applications are approved.

When issuers discover you were able to make some undesirable financial mistakes in the past, you can kiss your application approval goodbye. Fortunately, getting a reloadable prepaid card is the exact opposite—fast, easy, and straightforward.

You can use it to help you curb overspending and manage your money properly.

Those who use credit and debit cards often find themselves in a mountain of debt if they lack the discipline and control over their spending. They can also end up paying for costly monthly interests, fees, and other charges if they are not careful with their spending.

While prepaid cards do have some transaction fees as well, they are often very minimal compared to their counterparts. What helped prepaid cards earn a really massive following is the fact that they’re not only easy to obtain, they are also very helpful for those who want to be on top of their spending.

For those who do not know, transactions using prepaid cards are limited to the balance that’s available on the card. That means as soon as the balance has been depleted, the spending also stops automatically.

You can use it to pay for online transactions.

There’s no denying online shopping has become almost the norm. And this is not really surprising as online shopping is just over the top in terms of ease and convenience. For starters, you won’t have to leave the comfort of your office or home.

With just a few mouse clicks, you can choose what you want, pay for it using your prepaid card, and wait for the items to be delivered right at your doorsteps. Now, that’s convenience, value, and ease you can’t just resist!

How to Use Prepaid Cards to Improve Your Finances

prepaid cards in Singapore

Unlike many years prior, prepaid cards have truly come a long way. Nowadays, they provide peerless and unbeatable benefits that are just hard to miss. For starters, they can help dramatically improve your finances by limiting the amount of money you can spend.

However, that’s not all. Loading money onto your prepaid card is also quick and easy. And since prepaid cards are accepted and honoured in countless merchant stores and establishments here and abroad, they have become the ideal alternative to carrying cash.

While prepaid cards are endearing because of the countless benefits they offer, there is one benefit that they provide that truly stands out: they can help you dramatically improve your finances. 

So if you are one of the many who find it extremely difficult to control your spending or adhering to the budget you’ve set, getting a prepaid card is one of the best things you can do. It is also the card of choice for those who find themselves spending impulsively.

There’s no denying many people struggle when it comes to adhering to the budget they have set or controlling their spending. The good news is you have a helpful ally in prepaid cards. Otherwise known as pay-as-you-go cards, prepaid cards are deemed a wonderful and welcome addition to the plastic card family.

While prepaid cards can look just like the other plastic cards, they have one distinct difference: they’re not linked to any savings or checking accounts. What this means also is they don’t come with any credit capabilities. That’s one awesome feature for those who want to learn to manage their money better.

How Your Prepaid Card Can Help Dramatically Improve Your Finances

It can help you avoid overspending. Unlike credit cards where you will be borrowing money from the issuer, you’ll be using your own money when you use a prepaid card. That means you have way better control over your spending since you can automatically stop once the balance on the card has been depleted.

Using your prepaid card can also help warrant that you don’t go over your budget as you have the option to only load the amount you want that fits your budget and use the money for its intended purpose alone. 

Some studies have also revealed that cardholders have the tendency to overspend when they use a credit card. Even those who have no plans to do so also get tempted knowing they can purchase what they want and pay for it at a later date.

It can be a great tool when shopping for the holidays. Undeniably, holiday shopping can be both stressful and hectic. It can also be massively challenging especially if you’re moving from one place to another and carrying a huge amount of money with you.

Fortunately, with a prepaid card, you won’t have to carry physical cash with you wherever you go. This makes moving around a lot easier for you as you won’t have to worry about losing your money or having it stolen while you go around looking for gifts.

What’s even more amazing? You can also use your prepaid cards for online purchases! That means you are spared from all the troubles and hassles of going to malls altogether and dealing with other shoppers just to purchase what you want.

Online shopping as many people already know can also be very convenient as it allows you to choose from a vast array of options without even stepping out from the comforts of your own home and office. Just pick what you want to buy, pay for it using your prepaid card, and wait for it to be delivered to your door!

What Makes Prepaid Cards Exceptionally Appealing

prepaid cards in Singapore

Initially, prepaid cards were promoted as a very convenient option for those who don’t have access to banks. It turns out, the best prepaid cards actually have a much broader appeal. In fact, a report from the Pew Charitable Trusts indicated that those who use the best prepaid cards have given up on other options.

Prepaid cards can also be used at any store that honours and accepts other plastic cards like credit and debit cards. Prepaid cards also provide cardholders easy access to ATMs in case they want to withdraw cash. There is also no need for credit checks when applying for one.

The Pew study also looked into the reasons prepaid cards have earned quite a following even among people who already have debit or credit cards. Primary, what they found out is many respondents believe they are able to control their finances better when they use a prepaid card.

Not only that, they also believe that using the best prepaid card spares them from paying those over the roof fees, interest, and monthly charges. Icing on top of the cake is they can credit a certain amount of money on the card and limit their spending to that amount alone.

While prepaid cards also have fees for certain transactions, they are undeniably way lesser compared to other plastic cards. No wonder many people consider them more economical. Some experts also claim that prepaid cards are universally less costly in terms of charges compared to its other counterparts.

The Exceptional and Undeniable Appeal of Prepaid Cards

Prepaid cards offer benefits that are hard to match. Some of the remarkable benefits they offer include:

No credit checks needed. This might not be common knowledge but banks run credit checks on every individual who applies for credit or debit cards. That means for those who have made grave financial mistakes in the past like issuing bouncing checks or not paying their bills on time, their chances of getting approved is very slim.

Fortunately, obtaining a prepaid card is as easy as can be. No credit checks are required and applicants won’t be asked to submit financial documents or personal data. People can also get as many prepaid cards as they want, depending on how many they think they need and they can all get them without any hassles or issues.

It’s an efficient budgeting tool. Going into debt can sometimes send people into a financial tailspin that might take years for them to recover from. For those who have a tendency to overspend, a prepaid card can be a very powerful tool. For many, the prepaid card is seen as a very effective and convenient way to manage money accordingly.

Those who don’t have access to banks, students who need quick access to cash but can’t get a credit card, and those parents who would like to teach their children proper money management skills all rely on prepaid cards to help them out.

With a prepaid card, spending also stops automatically as soon as the balance on the card has been depleted. That means you can limit your spending and just load money back on the card again whenever you deem fit.

You can use it to shop online. Online shopping has become a favourite of many and for good reason. For starters, online shopping allows you to purchase whatever it is that you want without having to leave your house or office.

All you have to do is visit the site you want to purchase items from, browse through all the available stocks, pick the one you want, pay for your purchase using your prepaid card, and just wait for the items to be delivered to your doorsteps. That’s convenience and ease you just can’t miss out on!

What to Consider When Choosing a Prepaid Card

Over the years, the best prepaid cards have earned quite a following. This is not exactly surprising as the best prepaid cards come with peerless benefits that are truly hard to miss. In 2015 alone, more than half of Americans purchased prepaid cards for personal use. That’s a massive rise compared to just 19 percent in 2008. 

If you’re considering getting a prepaid card but unsure if it’s the right fit for you, you’ve come to the right place. This article will cover all you need to know about prepaid cards so you gauge if it’s the best option for you and you will know what to consider when getting one.

Prepaid cards work more like a debit card than a credit card.

While prepaid cards look just like the typical debit or credit cards, they are actually very different in terms of features. Unlike credit cards where the bank will have to pay for your purchases first, with prepaid cards, you will be spending your own money. Also, unlike debit cards, your prepaid card is not connected to any bank account.

The great thing about prepaid cards is you can also use them for purchase transactions and ATM withdrawals just like you would when you’re using a credit or debit card. Prepaid cards are also often backed by major financial institutions so they are accepted and honored by many merchants the world over.

Your prepaid card can also be used for online purchases. This is one thing many people find really inviting. After all, it spares them from all the hassles associated with going to the malls, braving the traffic, and dealing with fellow shoppers and sales clerks.

Prepaid cards can be a great alternative to banks.

If you don’t like dealing with banks or would like to avoid the hassles associated with it, prepaid cards can be a wonderful alternative you can look into. In the United States alone, a whopping 68 million people have no checking account. Fortunately, they can use prepaid cards as an alternative. 

What makes prepaid cards a truly enticing alternative is how easy they are to obtain. Unlike prepaid and debit cards where you have to submit financial documents and personal information and subject yourself to credit and background checks, prepaid cards are straightforward to get. No credit and background checks and no need to submit any financial documents or personal information!

They can help you manage your money accordingly.

If money management is a challenge for you, you are not alone. Many people also find it extremely difficult to manage their money accordingly and stay on top of their spending. Fortunately, prepaid cards can be your most powerful and helpful ally. For starters, all the transactions you will do using your card is deducted directly from the balance available.

When using credit cards, you can do purchase transactions and carry out ATM withdrawals while “borrowing” money from the bank. In other words, the bank pays for the purchases first and you’ll have to pay the bank at a later date plus interest. The unfortunate thing is it’s easy for you to spend even if you are not allowed to or can afford to.

With a prepaid card, all the spending will be deducted from your balance in real-time. Once the available balance on the card has been depleted, the spending also stops. You won’t also be able to do any transactions if the balance on the card is already zero. You however have the option to load money onto the card so you can use it again for whatever transactions you have in mind.

Prepaid Cards: Fast Facts You Should Know

Basically, the best prepaid cards work like a combination of a credit card and a checking account. Oftentimes, they are issued by bank holding companies and are branded by established financial institutions.

Before the best prepaid cards can be used, money needs to be loaded on the card first. Just like a credit card, prepaid cards can be used for purchase transactions (online and at merchants) as well as for ATM withdrawals. Also, akin to most credit cards, prepaid cards are honoured where most credit cards are accepted.

While prepaid cards share a few features in common with credit cards in terms of functionality, it’s financial side is more identical to that of a checking account. What that means is any amount spent or withdrawn will be deducted from the total balance available on the card. In addition, prepaid cardholders won’t be able to spend beyond the balance that’s on the card.

Prepaid Card Fast Facts

If you’re considering getting a prepaid card, here are some fast facts you need to know:

  • For some, prepaid cards are the convenient alternatives for various transactions that will require the use of credit cards. That being said, prepaid cards can be especially beneficial for people who don’t have access to banks or have minimal to zero knowledge in terms of how they work.
  • Prepaid cards can also be awesome for people who have no access to banking services or those individuals who are locked out of the banking system because they have poor credit scores.
  • Those who like to give gift cards as tokens would be delighted to know prepaid cards provide a much better alternative thanks to some of the beneficial features they come with. For instance, some prepaid cards come with protection in the event of loss or theft.
  • Most of the time, cash cannot be used to pay for online services or products. Fortunately, prepaid cards can be used to pay for transactions done online. Unlike gift cards, prepaid cards can also be used to withdraw money from the ATM.
  • Thanks to the topnotch benefits they offer, prepaid cards have evolved into one of the fastest growing niches in the financial sector. In fact, many experts project the number of prepaid cards sold to rise by as much as 22 percent annually from 2015 to 2020. Another prediction indicated that the total amount that will be loaded by prepaid cardholders will rise to as much as $116 billion by the year 2020.
  • To be able to pick the best prepaid cards for your needs, consider it best to analyse your spending habits first. From there, opt for a card that will charge less in areas where you are more likely to be charged. For instance, if you use your card for a lot of transactions, it would be wise to choose a prepaid card that will waive fees each time you exceed the money transaction limit.
  • Another beneficial tip you should keep in mind when looking for a prepaid card is structure that you can easily understand. You have to remember that some prepaid card providers use the flat-free model while others charge users for most card transactions. Analyse your monthly card activities so you can gauge if a flat-free model would be a good fit for you.

New User’s Quick and Comprehensive Guide to Prepaid Cards

Over the years, prepaid cards have become quite massive. In fact, a Pew survey revealed that prepaid card use exploded by as much as 50 percent from 2012 and 2014. Since they were first introduced, prepaid cards have evolved into one of the preferred payment methods especially for those who don’t have access to banks.

In addition, prepaid cards have also become a favourite among millennials. In fact, many see prepaid cards as the consummate alternative to the traditional bank accounts as well as other plastic cards.

How Well Do You Know Your Prepaid Cards?

If you’re like most people, it is likely that you’re considering getting a prepaid card. If you don’t know much about it, here’s your quick and comprehensive guide to one of the best financial tools now available.

What are prepaid cards?

Prepaid cards look almost identical to credit and debit cards. However, unlike the latter, prepaid cards are not linked to any bank account. They also have to be preloaded with money before they can be used. Also, unlike credit cards, you won’t be “borrowing” money from the issuer. Rather, you are using your own money, the one you preloaded in your card. 

Gift cards are also classified as prepaid cards. However, gift cards are designed for one time use only. Reloadable prepaid cards on the other hand are designed for repeated use, given of course that the card has money in it. Fortunately, there are several convenient ways to reload money onto a prepaid card.

How can I use my prepaid cards?

Just like credit and debit cards, prepaid cards can also be used for merchant and online transactions. They are also often affiliated with established credit and financial networks. That means they are also accepted and honoured in establishments associated with the network.

Each time you use your prepaid card, the purchase or withdrawal amount will be deducted directly from the balance that’s available on your card. In other words, your transactions will be limited by the balance that’s available on your card. 

If the amount available in the card is not sufficient to cover a certain purchase, your transaction will be declined. Suffice it to say, prepaid cards can be very beneficial budgeting allies as they won’t allow you to spend more than you can afford to. When used for ATM withdrawals, you’ll need a personal identification number (PIN).

How do prepaid cards differ from credit cards?

While both cards can be used for both ATM and purchase transactions, they have a few distinct differences. Case in point: when you have a prepaid card, you need to reload money onto your card before you can be used. 

It’s the opposite when using a credit card since you don’t need to shell out any of your own money. The issuer will pay for your purchase or withdrawal first and you will pay for the purchase or withdrawal at a later date.

Transactions using a credit card are considered a loan so your credit history as well as your statement balance will be reported to major consumer credit bureaus. Transactions you do using your prepaid card will not be reported.

What do I need to consider when choosing a prepaid card?

Prior to choosing a prepaid card, it is important that you figure out how you will be using it. For example, would you prefer reloading money through reload networks or direct deposits? If for example, you prefer the former, it would be best to pick a reload network that’s easy for you to go to. 

Another important thing you need to look into are the charges and fees. In line with this, you need to also identify the transactions you’ll usually do using the card. Ideally, it would be best to opt for a prepaid card that charges less for transactions you often do.