Thursday, May 5, 2011

Why use prepaid cash cards?

Prepaid cash cards are a form of pay as you go cash cards onto which users deposit money, then use it to pay for goods or services. Unlike normal credit or debit cards, users only spend the amount they put on the card.

Prepaid cash cards are available to people from all walks of life, the requirements for approval are very basic; in some cases it is as simple as being a UK resident.

Prepaid cash cards have become very popular in recent years but why are they favoured by most people instead of going for traditional credit cards?

Curbs out of control spending
Most people favour prepaid cash cards because it helps users monitor their spending. Prepaid cash cards are also a great way to avoid credit card debt, something people are conscious of since the financial crises in 2008.

Teaches money management:
You need to be 18 to get a credit card and most children can’t get mainstream debit cards but prepaid cash cards allow anyone over the age of 13 to get one. These can also help parents teach their kids about money management.

Spending online
The internet is a powerhouse when it comes to bargain hunting, however you’ll nearly always need plastic to actually purchase online. If you can’t get credit or debit cards, most websites will accept prepaid cash cards.

Overseas spending
Prepaid cash cards are easy and a convenient option when it comes to spending abroad. It protects users against thefts and fraud.

Improve credit rating
Prepaid cash cards used to be an easy alternative for people with bad or no credit however it has become so much more. These day most prepaid cash cards offer a creditbuilder or credit booster facility to help users build their credit rating.

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