For every dollar they earn, Canadians owe about $1.70 on average. If you struggle to manage your money and avoid debt, consider using a prepaid bank card.
You can use it on ordinary purchases, and it can help limit your spending. Consider a few things to look for in the top prepaid bank cards.
No or Small Bank Account
If you don’t have a checking account, you should consider a prepaid bank card. Prepaid bank cards are like debit or gift cards. As long as you have or can get the cash, you can load the card with funds.
You don’t need to worry about connecting a bank account to your card. If you need money to load one of the top prepaid bank cards, you can get a small loan.
Then, you can have the money you need to pay your bills or get groceries. You can get a prepaid bank card at the post office, online or at a pharmacy.
Depending on the card you get, you can load it with as much or as little money as you want. That way, you can have enough cash to make purchases until your next direct deposit hits.
Bad or No Credit History
If you don’t have any history with credit or you have some bad hits on your record, you may want to look at Bancorp bank prepaid cards.
When you don’t have any credit history, lenders may treat you as someone with bad credit. And having bad credit can make it hard to get loans or take out a mortgage.
You may be able to use a prepaid bank card to build or rebuild a good credit history. However, you don’t need good credit to get a bank card.
As long as you have the funds to fill the card, there’s nothing stopping you. You can load the card, and you can use it like a typical debit or credit card.
Works Online or In Person
If you don’t have access to a traditional debit or credit card, it can be hard to make online purchases. Luckily, the best prepaid bank card let you buy things online.
You can use the card to pay rent online or to order food or other goods. Online retailers don’t differentiate prepaid bank cards from other cards.
If you have the balance to cover your purchase, it should go through without an issue. And if you need more money to pay your bills, you can get a small loan to cover the difference.
You can also use the card on purchases you make in person. Whenever you go to the grocery store or gas station, you can swipe your prepaid card to pay.
Safer Than Cash
Another benefit of using the top prepaid bank cards is that they’re safer than cash. If you lose cash, it’s gone.
But if you lose your prepaid bank card, you may have some rights to your money. A lot of cards offer theft protection, just like normal credit cards.
You can report your card as lost or stolen to the place where you got it. Then, they can stop the card, and you can get a new card to use.
While you’ll still need to keep track of your prepaid bank card, it can be less stressful. If you ever do lose it, you won’t be out that money. That alone is a good reason to try a prepaid bank card.
Immediate Access to Money
Using a prepaid bank card will also give you immediate access to your money. If you take on a side job for someone, they can load funds directly to your card.
You can also get instant funds if you use a loan to cover the balance. You won’t have to wait for a check to clear or for your direct deposit to hit.
Whenever you refill the card, the balance will be there in seconds. Then, you can continue using the card on purchases you already need to make.
If you’re on a tight budget, waiting even a day can be devastating. When you need to pay your bills now, you need that money. And if you don’t need the funds, you may be able to transfer between prepaid and bank balances for access to even more money.
No Interest Charges
If you’re trying to decide between a prepaid bank card or a credit card, consider that credit cards charge interest. Unless you pay off your balance in full, you can rack up a lot of debt over time.
But a prepaid bank card doesn’t charge interest because it functions similarly to a debit card. You may have some fees to activate the card or to make deposits.
However, the fees are much lower than the interest you could be paying. You also won’t have to worry about late fees like you would with a credit card.
If your paycheck hits a day later than normal, you won’t need to worry about deducting a fee from your balance.
Helps Maintain a Budget
Whether you use the Bancorp bank prepaid card or another option, it can help you stick to a budget. Managing your money well can help you in many ways.
When you have access to all of the money in your bank account, you can be tempted to spend it. By loading just what you need to your prepaid bank card, you can limit your spending more easily.
It can help you save more money even if you aren’t making more. You can use the experience to learn more about your expenses, and it will force you to think about how much money you need.
Then, you can set the extra money aside for savings. As you become better with money, you can build your credit and start using your debit or credit card without getting into financial trouble.
The Right Prepaid Bank Card
If you struggle with maintaining a budget, you should consider a prepaid bank card. The right one can help you manage your money and spend wisely.
You can use it like you would a credit or debit card. But you don’t have to worry about overspending. Y ou can fund the card with your salary, or you can start with a small loan.
Do you need some money to put on your prepaid card? Claim your cash today.