Practical (and Smart!) Reasons to Get a Reloadable Prepaid Card

In today’s technology-driven and fast-moving world, seamless and cashless transactions have almost become the norm. In other words, nowadays, almost all financial transactions are carried out using a debit, credit, or reloadable prepaid card.

Without doubt, these awesome and undeniably ingenious tools have become the financial tools of choice by many over the years. However, of the three mentioned, the reloadable prepaid card is the most recent addition.

While relatively new, it is reassuring to know that reloadable prepaid cards are not inferior in any compared to other cards in terms of the convenience and ease offered. Given that you know all the basics of your reloadable prepaid card, you’ll be able to maximise and enjoy all the benefits it has to offer.

Reloadable Prepaid Cards: Your Smart and Practical Plastic Card Alternative

If you’re considering getting a prepaid card or you already have one but clueless when it comes to the benefits they offer, we’ve listed them down for you. While there’s no shortage of benefits reloadable prepaid cards offer, some of the most remarkable ones include:

They are so easy to obtain

Have you tried applying for a bank account or a credit or debit card? If you have, you can definitely attest to how hard they can be to apply for. For starters, you’ll have to go through those time consuming and meticulous credit and background checks.

If anything, you’ll have to be prepared to submit financial documents and share personal information.

If you’ve made a few financial mistakes in the past (i.e. issuing bouncing checks or not paying bills on time), it is very likely that your application will be declined. Thankfully, even if you don’t get your hands on a credit or debit card, you can easily obtain the next best thing—reloadable prepaid cards!

With reloadable prepaid cards, you no longer have to worry about submitting financial or personal documents. That means you are also spared from those tedious credit and background checks.

What’s even better? Since reloadable prepaid cards don’t come with credit capabilities, you are spared from the risk of spending beyond your means.

They can help you manage your money better

When you use a credit card, you need to always be aware of your spending. Otherwise, you can end up buried in a mountain of debt that will take years for you to fully pay.

Come to think of it, you can easily get stuff and pay for them at a later date. Unless you’re being really wise with your spending, you’ll always have to constantly deal with the temptation of spending more than you’re supposed to.

Thankfully, with a reloadable prepaid card, you won’t have the same dilemma. Since you get to decide how much to load to the card, you can also limit your spending to the balance that’s available on the card.

You are free from the impulse to purchase things you don’t really need just because you can pay for them at a later time.

As if not enough, prepaid cards can also be very effective as a budgeting tool since it allows you to easily track your spending. It is also considered ideal for those who want to strictly adhere to the budgets they’ve set.

They can make shopping online really easy

Shopping in stores and malls especially during these times of quarantines, lockdowns, and social distancing has become extremely challenging. Of course, for most, it’s also not practical or safe.

The good thing is, your reloadable prepaid card can be used to shop online so you don’t have to go out to get what you want. To ensure the safety of your online transactions, be cautious about the sites you’ll purchase items from.

Spend some time to check if they are indeed legit and trusted. Fortunately, with reloadable prepaid cards, your risk is way lower even if it is compromised since it is not connected to your bank accounts or any of your personal or financial information. Truly, safety, ease, and convenience you can’t find anywhere else!

Effective Ways to Properly Manage Your Reloadable Prepaid Card

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.