Avoiding Debt Can Be Helped With Prepaid Cards



 


Many people are trying to wean themselves off of plastic that help them accumulate debt. As more people are looking for alternatives, prepaid cards are becoming increasingly popular. This is because no debt can arise from using these cards, however the cards have some of the same perks as a traditional credit card.

Those who are wading through a lot of credit debt still need an alternate source to fund purchases. The popular solution is that of a prepaid card that has been loaded with cash. The benefit to these cards is that they are accepted almost anywhere that accepts Visa or MasterCard. They can be discarded after a single purchase or they can be reloaded time and time again. The transactions are deducted immediately from the card. Once the card no longer has money on it, purchases can no longer be made. There is absolutely no credit extended on the card.

Since so many people are looking into this type of transaction, more prepaid cards are available on the market than ever before. When you look for a prepaid card, what do you look for to offer you the most benefits? You want to look at the fees on a card. Some will charge you with a one-time fee while others will charge you a monthly fee. You may also have to pay fees when it comes to reloading, per purchase or other features like calling customer service or using an online account management feature. There is also something to be said about using a card company that has been around for a while as opposed to one of the new ones you've never heard of before.

The fees involved with prepaid cards can be significant if one isn't careful. These fees can be anything from monthly fees to fees for expiring balances and even ones that have fees to reload the card each time. There are many cards that offer a low initial fee but then charge a little bit for every transaction that is made. There are also cards where the balance will expire if you haven't used the card in a while, which is like throwing money away. You have to read the fine print before you sign up for one of these prepaid cards. Some of the card companies hide the details, so you need to take the time and read through everything carefully. Shopping for the right card will take you a little bit of time because of this, but it will pay off for you in the end.

The majority of prepaid cards on the market to charge fees for at least some things. However, you want to remember that it's not a credit card where you have interest building up each and every month. The whole reason for using the prepaid card is that you can avoid the interest and the negative effect on your credit score.

Many of the prepaid cards have some of their own perks. You can find some that will give you cash back rewards and others that will give you discounts at certain stores. When you can take advantage of these, some of the fees can be overlooked because you are also saving money at the same time.

Keep in mind some cards can also be anonymous. These allow you to get the card without having to use ID or go through an application process. These can also be very secure for making purchases online because none of your personal information is attached to the card. These are unloadable cards – they come loaded with a certain amount of money – when they're empty, they get thrown away and a new card can be procured.

In Canada alone there is a potential market of over $100 billion in prepaid cards. Many people are still learning about the benefits, so the current figure is about half of that amount. As more offers become available, it is likely the actual number will meet the potential within a few years.

The newer prepaid cards are offering more features and more benefits. As the cards come up with better offers, consumers are snapping them up left and right. Even more features and benefits are expected to hit the market within a few years as more credit card companies will be offering the prepaid credit cards as a way to compete in the market and get more transaction fees than they are currently getting with credit cards alone.






No-Fee Scotiabank® Value VISA® Card

No-Fee Scotiabank® Value VISA® Card
Rating: 4.5 out of 5
Intro APR: 3.99%*
APR: 16.99%*
Annual Fee: $0*

ScotiaGold Passport® VISA® Card

ScotiaGold Passport® VISA® Card
Rating: 5.0 out of 5
Intro APR: N/A*
APR: 19.99%*
Annual Fee: $110*

Scotiabank® Value VISA® Card

Scotiabank® Value VISA® Card
Rating: 4.5 out of 5
Intro APR: 0.99%*
APR: 12.99%*
Annual Fee: $29*

Scotia Momentum® Mastercard® Card

Scotia Momentum® Mastercard® Card
Rating: 4.0 out of 5
Intro APR: 7.99%*
APR: 19.99%*
Annual Fee: $0*

Scotiabank Platinum American Express Card

Scotiabank Platinum American Express Card
Rating: 4.5 out of 5
Intro APR: N/A*
APR: 19.99%* (Variable)
Annual Fee: $399*

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