Prepaid cards have seemingly taken the world of finance by storm since their arrival a few years ago. Not only are they easy to use, but they can be low cost and low maintenance, too.
But with so many options to choose from, choosing the right one can be overwhelming. Below we’ve listed a few key factors to consider when choosing your next prepaid card:
Online Account Access
The option to check your account online is an indispensable feature in managing a prepaid card. This gives you the flexibility to keep track of your spending and the status of your account at your most convenient place and time.
There are actually prepaid cards that also offer reward programs for cardholders. For instance, you may be able to enjoy discounts from selected merchants and establishments, no cost reloads to your prepaid phone, etc. make the most of your spending by choosing a prepaid debit card that matches your lifestyle.
One of the biggest perks of a prepaid card is the absence of interest fees or late payments. Since these business prepaid cards are loaded by existing funds, there is no bill at the end of the month. Some prepaid cards have monthly, annual, or membership fees –make sure to review the fee schedule and see if they fit into your budget before committing.
No Credit Reporting
Prepaid cards don’t report to any of the three credit reporting agencies, which means its use does not affect your credit score. This might be a good thing if you don’t want to tamper with your credit score (which most people don’t!), but if you’re looking to rebuild your credit, a prepaid card might not be the choice for you.
As with any financial decision, choosing a prepaid card should be deliberate and calculated, despite the easy approval process. It’s important to consider your needs and values and match them accordingly with the right prepaid card provider. And if all goes well, you’ll find a prepaid card that’s your perfect match.