There are a number of advantages to using prepaid credit cards, according to the Prepaid International Forum.
Prepaid credit cards provide a range of benefits for consumers, a trade association has claimed.
Chris Reddish, chair of the Prepaid International Forum (PIF), explained that prepaid cards are "phenomenally important" for people who are unable to get other types of card, as "to take part in society today you need some form of financial card payment". This opens up possibilities for around six or seven million Brits, allowing them to buy online and take advantage of cheaper prices, he added.
Additionally, parents can help children gain a financial education by using the cards, according to Mr Reddish. By using prepaid cards, younger people can safely learn about managing their finances and being responsible with money "where they don't have a credit risk and the temptation to spend more than they can actually afford".
He also suggested taking a prepaid card on foreign holidays, as they offer an alternative to cheques, which many businesses no longer accept. Additionally, prepaid cards often provide better exchange rates than debit or credit cards.
Finally, Mr Reddish said that "a lot of people use [prepaid cards] for budgeting", as they can set how much they will be able to spend using the card.
