Tuesday, May 24, 2011
It is very hard not to be tempted by store cards when it’s being shoved in your face at every turn and offering seemingly great deals like 15% discount on all your purchases. Not all people can resist the temptation of a shopping spree but as the saying goes, ‘all that glitters is not gold.’
Yes store cards are easy to qualify for, even individuals with poor or minimal credit can make the cut and it’s great for consumers who need to establish or improve their credit history.
It also offers special store perks such as free shipping and delivery not to mention store reward programmes and members’ only specials.
This is all good until you receive your first statement and realise you have spent too much on unnecessary (or unaffordable) impulse buys.
Another horror of having a store card is that they rarely have reasonable interest rates (they are frequently over 20%). All your "perks" will dissolve quickly if you aren't planning to pay them off in full each month.
Compared to prepaid cards, there really is no contest; prepaid cards helps curb out of control spending whiles store cards escalate it. Prepaid cards are a great way to avoid debt and future unnecessary worry over finances.
Whiles prepaid cards teaches money management especially to young people, store cards entices them to spend beyond their means.
Majority of prepaid cards have a credit building feature, enabling users with bad or no credit to build a positive credit history whiles a store card is easy to qualify for and a small lateness or delay with payment will tank your credit rating.
Finally another obvious advantage a prepaid card has over a store card is that prepaid cards protect users against fraud at home and abroad whiles the theft of a store card only brings excess bills and debt.
So the next time a store clerk hurls the temptation of instant savings gratification via a department store credit card, take a timeout and think before accepting.
Wednesday, May 18, 2011
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.
Tuesday, May 10, 2011
With the holiday season upon us, credit and debit card companies are bracing themselves for a huge rise in credit and debit card fraud and are also warning the public to be vigilant whiles on holiday.
To counter all these problems and to have a peaceful holiday, why not take a prepaid debit/credit card with you on holiday? There are several prepaid debit and credit cards on the market and majority of them come with excellent features for use abroad. Here’s why it is a good idea to take a prepaid debit or credit card with you on holiday;
Prevent Credit/debit fraud
Debit /credit cards fraud happens both at home and abroad but the risks are always greatest when on holiday. We hear horrendous stories from victims of card fraud and how it impacts their lives negatively.
Because prepaid credit/debit cards are not linked to bank accounts, when they are stolen, it is easier to limit the damage to just the card.
Fraudsters can empty your accounts or rack up huge credit card bills in your name but should your prepaid card get stolen on holiday, you only lose the balance on the card.
Most bank credit and debit cards charge huge commission and interests when used abroad, something you don’t experience with prepaid debit/credit cards.
As prepaid cards have grown in popularity, issuers have given them special features such as allowing you to spend abroad without foreign currency commission or transaction charges. These types of prepaid cards save money compared to bank credit cards.
Taking a bank debit or credit card on holiday means you ran the risk of coming home to a huge credit card bill; prepaid cards on the other hand saves money as it will limit your spending abroad.
Also with exchange rates, it’s sometimes difficult to know exactly how much you’re spending on a bank credit card however prepaid cards will only let you spend the amount loaded on the card helping you stay within budget.
Helpful in times of emergency
Prepaid credit/debit cards are great asset to have for young people and gap year students travelling around.
Should they ran into an emergency or out of money whiles abroad, their parents can reload the card through the online facilities provided and the money becomes available in a matter of hours.
Thursday, May 5, 2011
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.
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.
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.