Prepaid payment cards can be a good way to manage your finances. They offer security, flexibility and convenience and are proving to be more and more popular.
With dozens of prepay cards to choose from, finding the right one for you can be a bit of a minefield.
Here's how to compare your options and find the best prepaid cards.
The benefits of prepaid cash cards
There are countless benefits of prepaid payment cards. The main reasons you should consider a prepay card include:
- They help you manage your finances as you can never spend more than the cash you have pre-loaded onto your card
- You can’t go overdrawn
- You don’t borrow any money so you never pay any interest
- They can be used to withdraw money at an ATM
- You can use them to buy goods and services in the High Street or on the internet – most cards are online payment prepay cards which let you buy on the web
- Many lenders don’t credit score your application meaning that pre payment cards are ideal if you have a less than perfect credit record
Finding the best prepaid cards
With dozens of prepaid cash cards available, how do you go about finding the right one for you?
Well, firstly you should consider the fees and charges that apply to each card.
Different prepay cards have different fees including charges for withdrawing cash at an ATM, charges for topping up your card, an initial ‘card purchase’ charge or transaction fees every time you use the card. For this reason finding the cheapest prepay card is a must.
Secondly, you should look at the specific benefits and conditions of each of the prepaid payment cards that you are considering. For example, what is the maximum amount that you can withdraw from an ATM in one day? What’s the maximum sum that you can load onto your card? And, can you manage your prepaid card online or by telephone?
You can use our online payment prepaid cards comparison table to compare your options and find the best prepaid cards for your circumstances that levy the lowest charges.
