The rising popularity of Visa prepaid cards have highlighted the inherent advantages that make them a realistic alternative to traditional credit or debit cards. If you’re considering getting a prepaid card, here are seven of those advantages you should know:
1) Effective Budgeting Tool
If you have a hard time keeping control of your spending, a Visa prepaid card may be able to help. It is incredibly difficult to overspend when using a prepaid card, because once the stored value on the card is used, any further spending will be denied.
This built-in feature makes prepaid cards perfect for those who are managing the spending of dependents, such as parents who want to give their children access to money without worrying they will overspend and go over their allotted budget. Visit www.t24blackcard.com to learn about prepaid card is an effective budgeting tool.
2) No Overdraft Fees
Overdraft fees can be expensive and add up quickly, and Visa prepaid cards are the perfect solution for those who tend to overdraw their accounts. When using a Visa prepaid card, once the amount loaded on the card is used, no further transactions will be allowed, completely removing the danger of over-drafting.
3) Enhanced Privacy
Since the Visa Prepaid Card is not connected to any line of credit, no credit check is needed for its application, which protects your information and your credit score. Aside from providing basic personal identification, (i.e. passport or national ID card and proof of address), no further information will be required. This severely reduces any chance of your identity being compromised. Go to www.t24blackcard.com to learn more about this.
4) Spending and Withdrawals
Just like traditional credit and debit cards, Visa prepaid cards can be used to make purchases in-store, online, and wherever ordinary credit and debit cards are accepted. Prepaid cardholders can also withdraw cash from ATM machines worldwide.
5) Consumer Protections
Visa prepaid cards are well-protected by the PIN and chip security system. If you fall victim to a lost or stolen card, you just need to call your prepaid card service provider, and they will block your prepaid card account. Some service providers will be able to send you a replacement card immediately.
6) No Credit Risk
Using a credit card to make big purchases will not only show a large balance on your credit report, if you are unable to pay it off, it can also damage your credit score. For those who would like to apply for a loan or mortgage, a damaged credit report or large unpaid balance can be a red flag from the point of view of your potential lender. Alternatively, any purchases made with a Visa prepaid card will not be reported to credit bureaus and can be considered “off the credit radar.”
7) Direct Deposit
Paychecks and other types of payments can be directly deposited to your Visa prepaid card account. Opting for direct deposit instead of traditional payroll cheques means that every pay day you can avoid long bank lines, processing delays, as well as cheque handling fees.