Why a Prepaid Card is the Smart Choice for Any Student
Every student needs to take a close look at how they manage their finances. All too often students fall into trouble with credit cards or even debit cards. Many students believe having a debit card comes with no risk and that you can only spend the available balance on the card. This is not true. You can actually get into a large amount of debt by swiping a debit card with insufficient funds in the account. You are responsible for the amount of the purchase plus a large overdraft fee, sometimes over $30. Many times people keep using their debit card with insufficient funds and can experience several overdraft fees within a day. If you’re annoyed when you find out that a three dollar cup of coffee turned into a 37 dollar cup of coffee because of an overdraft fee, then you will find Prepaid Cards to be a refreshing change.
Here are the benefits of using a Prepaid Card:
- The number one benefit is that there’s no chance of getting into debt. You put a certain amount of money onto the card and then you can only use the money you have. You don’t run the risk of damaging your credit or receiving hefty overdraft fees.
- Since a prepaid debit card is not attached to your bank account, you are protected if your card is lost or stolen.
- You can add money to your prepaid account at any time, or money can be automatically transferred from another separate account on a scheduled basis.
- Most prepaid cards can be used anywhere debit cards are accepted. For instance, Facecard can be used anywhere MasterCard® Debit cards are accepted including internationally, at ATMs, and online.
- There are no interest rates applied to prepaid debit cards, although there are sometimes fees associated with them. Make sure you check the schedule of fees that comes with your card.
- Prepaid cards are great training cards for teens and students. Prime candidates for prepaid cards are young adults who have never owned a credit card and need practice, parents who want to give a card to their children but prefer an alternative to credit cards, and people who would rather not use cash.
There are hundreds of available credit cards, debit cards, and prepaid cards in the marketplace today. No matter what type of card you think is best, it’s important to do research and find the best one that fits your needs.
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