Wednesday, May 18, 2011

How students benefit from Prepaid Cards

A Prepaid card is a form of pay as you go credit and debit card which allows users to deposit money and then use it to pay for goods and services just like they would with a normal card.

Since its inception, prepaid cards have become a god send to people with adverse credit histories who can’t get traditional credit cards as well students because of its flexibility and budgetary qualities.

For students, especially those under the age of 18years, prepaid cards can be obtained without any restrictions attached. The cards can be purchased without any need to undergo a credit check.

Prepaid cards also help control spending, once the balance is reached on prepaid cards, the buyer has to add additional funds or the card is unusable. Buyers control spending by only loading the prepaid cards with the money they have available or the money they have budgeted to spend.

Prepaid cards also teaches restraint and curbs overspending or making expensive impulse purchases with the card. It is also a great accessory for students in crowded student halls or dorms as they don’t need to carry cash around. If the card is stolen, the amount of the loss will be limited.

Prepaid cards offers flexibility and convenience, most companies offer online bill and telephone bill paying so students with prepaid cards can pay their bills on time.

Finally prepaid cards offer security especially for online purchases, it allows students to buy and pay for things without revealing their bank account details. For example, students can purchase books on the Internet and pay for it with the prepaid card instead of revealing credit card information.

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