Prepaid Cards
What are prepaid cards? What financial benefits can I get from this? What charges are there with a Prepaid Card? What Prepaid card is right for me?| What are prepaid cards? | Top |
A prepaid card works much in the same way as a SIM card whereby the card has an amount of money preloaded onto the card and this is the amount which can be spent with it. For all intents and purposes, the prepaid card can be used in exactly the same way as a credit card, except for one crucial point, you cannot raise credit with it.
| What are the benefits with a prepaid card? | Top |
- No credit checks - because you are not applying for credit. However, you will be asked to prove your identity.
- Financial management – like a credit card, you receive every month a breakdown of card usage so you can identify what you bought, when you bought it and who you bought it from.
- Cannot get into debt - As you cannot obtain credit from a prepaid card, you cannot get into debt.
- Travel - You can use it at most ATMs around the world.
| What charges are there with a Prepaid Card? | Top |
Different prepaid card issuers have different charges associated with them. Below is a description of some of the more common ones.
- Application Fees – A charge for opening an account
- Monthly service charge – monthly subscription charge
- Cash loading fee – A charge to load up your prepaid card
- Deposit Fee – Bank charges associated with a prepaid card
- ATM Fee - charges for withdrawing cash from an ATM
- Purchase charge – when purchasing goods
- Termination Fee – A charge for closing your account
- Replacement Fee – A charge for a replacement-prepaid card
| What Prepaid card is right for me? | Top |
Different people have different uses for a prepaid card. However, some of the common questions you need to ask yourself regarding prepaid cards are as follows:
- How do I top up my prepaid card? Can I pay money in a bank or on line etc?
- Can I manage my prepaid card online?
- How safe is my prepaid card?
- Where will I use my prepaid card?
- How often do I intend to use my prepaid card?
Once you have answered the questions, it is time to start shopping around, because somewhere out there is the right prepaid card for you.
