Money can be tight at times, and thus, payment alternatives like credit cards, debit cards, and a 4th: prepaid visa card help make purchasing specific products and services more flexible. The use of cards to pay for services can be done either online or by visiting a physical shop that supports such a type of payment.
You can make the most of the monetary value of your prepaid visa card by determining the most cost-effective ways you can use it in your daily transactions.
The charm of a prepaid visa card lies in the number of options or alternatives it has for its end-users. Aside from having a reloadable and one-time use variants, it is also flexible enough to allow different requirements for monetary transactions. Both customers and businesses can benefit greatly from using a prepaid visa card.
If you own a reloadable prepaid card, then you should try depositing your salary or paycheck into your visa card. In this manner, you automatically align your funds and have something handy in case you need to purchase stuff. It supports flexible finance management even while you are constantly on-the-go.
Also Read: Can Tax Debt be Negotiated?
Since prepaid visa cards can be linked to your paycheck, this means that you can also use it to help settle your taxes. Some services and transactions offer tax refunds or allow tax refunds to be sent directly to a customer’s visa card. Here is a pretty handy tax refund calculator if you intend on your refund being sent to your prepaid visa card.
Prepaid visa cards are highly convenient because it does not require users to create a bank account to avail one. It keeps you from getting in long queues, undergoing interviews, and preparing the necessary documents and identifications as you would when you apply for an actual bank account. It also highlights fast-paced and immediate demands for monetary transfer because it enables you to transfer money or send payments seamlessly.
Features and deals
Each card offers different deals and features. Some prepaid cards can be used to settle your bills online or through a physical payment centre. Some variants come with a mobile app or are partnered with big store brands that let you accumulate points and rewards for every purchase completed using your card. You can also have the option of converting your card’s balance into cash either through the use of a check or by dispensing cash in an ATM.
Credit history is not an issue
Not all people are viable for a credit card or bank account application, and it is because of their lack of credit background. Credit scores are among the key determinants of whether a bank allows an individual to create an account under their company or avail their credit card services. But with a prepaid visa card, you don’t have to worry about whether you have an existing credit history or not. Credit scores are not necessary either. That said, it caters to a broader range of customers and does not leave you predisposed to potential debt in the future.
Limits overspending tendencies
Credit cards can be quite tempting because of how it lets you make purchases even without cash-on-hand. However, the real nightmare comes once your billing statement arrives. Some people stress over the number of fees they collected from repeatedly using their credit cards. Remember, separate payments using your credit card will ultimately be combined, computed and charged for you to pay the following month. Meanwhile, a prepaid visa card has a specific limit, and it prevents you from spending more than the remaining balance contained in it.
Knowing your way around a prepaid visa card helps make you a smart shopper. It also keeps you a step ahead of your finances, especially amid worldwide health emergencies that magnify the use of cashless transactions to avail your basic needs.