In instances where a person’s credit rating is poor or they lack a bank account, it can be very difficult to get a credit or debit card.
However, there is a way to escape from the word ‘no’ and the constant letters of rejection that can inundate people in these types of situation.
It comes in the form of a prepaid card – in appearance they are very similar to credit and debit cards but that is about as far as the similarities go.
No credit is available on a prepaid card so there’s never any chance of going into debt and there is no interest earned or paid.
A financial management solution
Simply put, the card can be used to spend funds once they are placed into a prepaid account, providing a straightforward way of managing finances.
As a result, in the majority of cases, all that is required to access a prepaid card is the ability to verify identity and a place of residence.
Since there is no need for a credit check, the use of a prepaid card will also not affect a credit rating in any way – making them available for those with current or previously poor credit scores.
Finding financial management solutions in these situations can be a considerable burden, so it can be a welcome relief to someone struggling with funds.
A safe and secure payment method
A bank account is not required to get a prepaid card, while it represents a safe and secure method of payment for all types of goods and services.
Chip and PIN prepaid cards carry additional security measures and can be used in store and over the phone at more than 30 million locations across the globe.
They can be used for online purchases as well as in regular retail outlets, while money can also be withdrawn via an ATM.
This means someone with a prepaid card has access to their funds on a 24/7 basis, regardless of where they are in the world.
As long as money is loaded onto the card, the person concerned will have access to it, to spend when and how they like.
Cards can be topped up online and at retail locations such as PayPoint, Payzone and the Post Office, while other locations may vary depending on the card provider.
For people who do not have bank accounts or are lumbered with a poor credit history, a prepaid card is definitely an option to consider when it comes to controlling finances.