How to Pick the Best Prepaid Cards: Things You Should Consider

prepaid cards in Singapore

Over the years, one plastic card has experienced a tremendous growth explosion—the amazing prepaid cards! In fact, a Pew survey revealed that prepaid card usage has surged by as much as 50 percent. And that’s between 2012 and 2014 alone!

If anything, the best prepaid cards have evolved dramatically since they were first introduced. Nowadays, prepaid cards are considered one of the most trusted and convenient methods of payment. This is especially true among those who don’t have access to banks. 

In addition, the best prepaid cards have now been considered by many millennials as the consummate alternative to the conventional bank account. If you’re considering getting a prepaid card but unsure how to pick the best one that will suit all your needs, this article can help!

However, let’s get into the basics first.

What are prepaid cards, really?

If you’re not familiar with their distinction, it’s easy to mistake prepaid cards for the typical credit or debit card. For starters, they share a lot of surface similarities. What sets the best prepaid cards apart from credit or debit cards is they are not connected to any bank account.

Also, unlike credit cards, you get to decide how much money you’ll load into the account. Why is this important? It puts you in total control of your spending! That means when you use your card to pay for purchases, you will be using your own money rather than “borrowing” money from the bank.

If you need help sticking to the budget you’ve set or curbing overspending, a prepaid card is your ultimate ally! Since you won’t be able to use the card without loading money onto it first, you get total control when it comes to the amount you’ll load and spend. That’s a truly helpful feature especially for those who have difficulty controlling their spending.

How can you use your prepaid cards?

Offering unbelievable and peerless ease and convenience, prepaid cards can be used for both merchant and online purchases. More often than not, prepaid cards are affiliated with seasoned payment networks. That means they are also accepted and honoured in places their payment network is associated with.

Each and every time you use your prepaid card, the total amount of your purchase (regardless if it’s through merchants or online), will be deducted directly (and immediately) from the balance that’s available on your card.

In addition, it is also crucial to remember that the amount you can spend will be based on the balance that’s available on the card. In other words, you can easily control spending by limiting your purchases and other transactions on the balance available. If the balance you have in your card is not sufficient to cover your intended transaction, your transaction will be declined.

This might not be common knowledge but prepaid cards can also be used for ATM withdrawals aside from purchase transactions. If you’re going to use your prepaid card for withdrawals, you’re going to need a PIN (personal identification number) to successfully carry out the transaction.

How do you pick the prepaid card that’s best suited for you?

When looking for the ideal prepaid card, it is crucial that you first determine how you are going to use it. Case in point: how do you intend to load your prepaid card? It is going to be through reload networks or direct deposits? If you prefer the former, then it would be wise to opt for a prepaid card with a reload network you can conveniently go to.

Another key aspect to look into is the charges and fees. In line with this, you also need to figure out how you intend to use the card. Of course, it would be wise to opt for a card that charges the most minimal fees available. In addition, ensure that the card you’ll choose charges less especially for transactions you often do.

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!

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!

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.

Prepaid Card 101: Understanding Prepaid Cards

The best prepaid cards are so similar in a lot of ways to debit and credit cards that many people often mistake one for the other. However, unlike credit or debit cards, the best prepaid cards are not linked to savings or checking accounts.  

Before prepaid cards can be used, money needs to be loaded on the card first. When used for purchase transactions or ATM withdrawals, the money is immediately deducted from the balance that’s available on the card. Once all the balance in the card has been depleted, cardholders have the option to load money on the card anytime they want.

For many, prepaid cards are considered the best alternative to cash, with the money loaded on the card in advance before it can be used. Many people also view prepaid cards as the consummate option for those who are unbanked or those who have poor credit history or no credit history yet.

Understanding Prepaid Cards

In a way, having a prepaid card is very similar to carrying actual cash minus all the risks involved. In other words, you need not worry about misplacing or having your money stolen since they are safely kept in your prepaid card.

If you’ve heard of prepaid cards but not familiar with how they are used, you’d surely find this article of massive value. Below are some prepaid card basics you need to know:

Regardless if you’re a teenager trying to learn great money management skills or someone with bad credit, you’d benefit from using a prepaid card. With a prepaid card, you can practice responsible spending habits as you go along.

As mentioned earlier, using a prepaid card is one of the best ways to carry money around wherever you go. With your money safely credited to your prepaid card, you won’t have to worry about losing your money or having shady people steal them from you.

Just like other plastic cards, prepaid cards can also be used for purchase transactions and ATM withdrawals. What’s even better is they can also be used for online transactions. That means you can easily purchase whatever it is that you want without having to leave the comforts of your home or office.

Those who are looking for ways to curb overspending or stick to a budget, a prepaid card can be a truly beneficial ally. Unlike credit cards, prepaid cards don’t come with credit capabilities. In other words, as soon as the balance on the card has been depleted, the spending also stops automatically.

Fortunately, you can use the card right away as soon as money has been successfully loaded onto it. Loading money on your prepaid card is both easy and straightforward. For instance, you can load money onto your card through secure online portals.

Prepaid Card Upsides

Why do people love prepaid cards? Primarily because they come with the following enticing benefits:

Security. Aside from keeping your money safe, prepaid cards can also be ideal for online transactions. While it would be great to be able to use your card for online purchases, what makes prepaid cards even better is they won’t put any of your personal details at risk even if you do online transactions.

Habit forming. Some people prefer to practice with their prepaid cards prior to using credit or debit cards. Undeniably, since prepaid cards don’t come with credit capabilities, it’s easy for you to develop responsible spending habits.

Card for the unbanked. As mentioned earlier, people who don’t have access to banks for one reason or another have a great alternative in prepaid cards. What’s even wonderful is you can easily obtain one without going through all those time-consuming and stressful bank applications.

Choosing The Best Prepaid Card: Key Things You Should Consider

Over the years, the best prepaid cards have experienced a massive growth explosion. In fact, a Pew survey indicated that usage of prepaid cards rose by as much as 50 percent between 2012 and 2014.

Since they were first introduced, thebest prepaid cards have evolved into a convenient payment method for those who don’t have access to banks. It has also become a great alternative to traditional bank accounts among millennials.

What are prepaid cards?

Prepaid cards look very similar to debit and credit cards. However, unlike debit cards, it is not connected to any bank account and it needs to be preloaded with money before it can be used. Also, unlike credit cards, you will not be “borrowing” money from the issuer. Instead, you will be using your very own money, the one you preloaded in the card.

Gift cards are also considered prepaid cards. However, they are only designed for one time use. Reloadable prepaid cards on the other hand are designed for continuous use, given of course that there is money available on the card. The good thing is there are several convenient ways to load money onto the prepaid card.

How are prepaid cards used?

Prepaid cards can be used for merchant as well as online purchases. Oftentimes, prepaid cards are also affiliated with established payment networks. That being said, the cards are often honoured and accepted in places associated with he payment networks.

Each time the prepaid card is used, the amount of the purchase or withdrawal will be deducted from the balance that’s available on the card. In other words, you can’t spend more than the amount that’s available in the card. If the amount available is not sufficient to cover the expenses, the transaction will be declined.

Unknown to many, prepaid cards can also be used for ATM withdrawals and not just purchase transactions. To use the prepaid card for ATM withdrawals, a personal identification number (PIN) is needed.

How are prepaid cards different from credit cards?

While both cards can be used for purchase transactions and ATM withdrawals, they have several distinct differences. For instance, a prepaid card will require users to preload money on the account before it can be used while a credit card will allow you to “borrow” money for purchase transactions which you need to repay at an agreed time.

Since credit cards are considered a loan, the statement balance and the credit history are reported to major consumer credit bureaus. Transactions using the prepaid card on the other hand will not be reported.

What key things should you consider when choosing a prepaid card?

When looking for a prepaid card, you need to first identify how you will use it. For instance, do you intend to reload it through direct deposits or through reload networks? If you pick the latter, then it would be wise to pick a card with a reload network that’s convenient for you to go to. When choosing a prepaid card, you also need to consider if you’re going to use it for online payments and ATM withdrawals.

Another key thing you need to look into is the fees and charges. In line with this, you also need to consider how you intend to use the card. Understandably, you’d want to keep your fee payments to a minimum. That being said, look for prepaid cards that will charge you less for transactions you frequently do.

For instance, if you intend to use your cards for ATM withdrawals, consider it best to opt for a prepaid card that waives ATM fees when the cards are used at certain networks. Other prepaid card issuers will also waive monthly fees for cardholders who load a specific amount monthly.