There is no longer a need to use cash for every transaction – now there are debit, credit and prepaid options, but how do you choose between them?
The plastic options provide a different approach to money, increasing the ease at which it can be managed and transferred.
Choice is a great thing for many aspects of life, such as choosing a new car or even something to eat and the same is the case when it comes to money.
The various different types of card are designed to assist their user in plenty of different ways, aiming to meet the needs of the consumer.
Considering your options
Credit cards can be an exceptionally useful commodity in the event of an unforeseen event that requires a large financial outlay.
But with a credit card comes the need to repay what is owed and the potential for debt in the long-term, something many people will look to avoid.
An option around this is to get a prepaid card, as only money that is loaded on to it can spent – this prevents the chance of debt ever occurring.
It requires finances to be loaded on to the card upfront and unlike credit or debit options; an overdraft facility does not exist.
This also means that credit checks are not required when considering a prepaid card option, providing a solution for those with poor credit scores or that do not have regular bank accounts.
Prepaid options available for worldwide use
However, the cards can still be used in a similar way to credit and debit card options as goods can still be purchased online and in stores across the globe.
Money can also be withdrawn from around 30 million ATMs, as long as there are the funds in the account to allow for a withdrawal.
With a prepaid card option, the same levels of access to money exist, as information about the card can be accessed online and via a mobile phone.
Potentials fees should not be forgotten though, as a number of cards have various transaction options that may have additional charges for some services.
It’s important to check on each individual option what sort of restrictions may apply before choosing a prepaid card.
When choosing financial options it’s essential to remember that everyone will have different needs and will face different situations.
As a result, it’s important to consider all available options before deciding which one best meets your individual needs.