While people have been using debit and credit cards since the 70s, the best prepaid cards are still deemed a new FinTech innovation. However, even if considered new, the best prepaid cards have been a favourite by many for the past decade or so.
Understandably, since it has only been a few years since prepaid cards have been introduced, it’s not surprising many myths have been floating around regarding this innovative and awesome financial tool.
If you are one of the many who’s considering adding a prepaid card to your arsenal of financial tools, it would be wise to be in the know about the myths surrounding prepaid cards and the truths behind them.
You won’t be able to get a prepaid card if you have bad credit
Prepaid cards, unlike credit cards, don’t have credit capabilities. What does that mean exactly? Simply put, unlike credit cards, when you do purchase transactions using your prepaid card, you won’t be using the issuer’s money. So understandably, since there is no credit involved, prepaid users are not that particular about who they issue the card to.
So even if your credit standing is not something you are proud of, it won’t be a hindrance to your desire to get a prepaid card and enjoying all the exceptional benefits it has to offer.
Also, other than getting the opportunity to enjoy all the benefits and perks prepaid cards offer, users are also not subjected to all the hassles and inconveniences of submitting financial documents or providing personal information when applying.
Only those people who don’t have access to bank accounts are granted prepaid cards
Definitely not true. When it comes to prepaid cards, it is good to know it’s not limited to those individuals with bank accounts. On the contrary, almost anyone can get access to a prepaid card. In fact, entrepreneurs, wise budgeters, teenagers, parents, and pretty much anyone who would like to stick to a budget can get a prepaid card.
Prepaid cards are also considered a practical and innovative replacement for those people who don’t have a banking account or credit card. For starters, there are no exorbitant interest and transaction fees, no obligations involved, and the perks, benefits, and features are unbeatable!
Prepaid cards are only accepted in selected places
There is definitely no truth to this. In most cases, prepaid cards are associated with seasoned and huge financial and credit institutions like Visa and MasterCard. So yes, prepaid cards are honoured and accepted in merchants where those cards are.
And for the record, that’s a staggering 40 million places worldwide! Now, that’s convenience and functionality you can’t afford to miss out on!
Prepaid cards function the same way as gift cards
No, not true. For starters, gift cards are typically sold at grocery stores and can only be used once. Prepaid cards on the other hand can be loaded with money and can be used repeatedly. In other words, once you have consumed all the balance that’s available on the gift card, it’s deemed useless.
Prepaid cards on the other hand can always be used as long as money is loaded onto them. So yes, unlike gift cards, prepaid cards are not disposable.