Prepaid cards are becoming more popular these days because they’re inexpensive and convenient to use. Unlike credit cards, they’re not tied to a bank account. They begin with a zero balance and must be loaded first with cash before you can use them for bills, purchases, and other financial transactions.
However, just like the other cards you have, you should also know how to properly manage the use of your prepaid cards to avoid financial mishaps later on. Fortunately, there are plenty of ways you can do to do this.
In this article, you’ll learn how to manage your prepaid cards efficiently.
1. Review The Card Agreement To See What Fees Apply
It’s no question that using prepaid cards comes with fees such as activation fees, transaction fees, maintenance fees, and many more. Hence, if you don’t want to end up paying hefty fees and have trouble managing your card, find time to check the agreement to see what fees apply.
Generally, the fees you pay may vary depending on your card provider, so be sure to read and understand the amount of fees that apply before using them. That way, you can rest knowing that using your prepaid card doesn’t require you to pay expensive fees.
On the other hand, if you’re looking for the best prepaid cards that will work best for your financial needs, be sure to read reviews, study the product features, and check the fees. Luckily, websites like Wealth Living Today can help you get valuable information about your prepaid card options.
2. Keep Your Pin Secure
Similar to credit cards, your prepaid cards have PINs that should be properly taken care of to avoid fraud and other illegal activities. Keeping your PIN secure is one way of managing your prepaid cards to make sure that someone you don’t know has no access to it. To do this, you should change your PIN regularly to something that you’ll remember but not your date of birth and other obvious figures as they can be easily detected by criminals.
3. Keep Your Purchases Under Control
Although prepaid cards can only be used when reloaded with money, it doesn’t mean you won’t incur fees and other charges when using it. For example, when you’re making some purchases, the prepaid card provider may charge a fee for every transaction you make. Thus, when you make unnecessary purchases every now and then, you’ll be charged with hefty fees over time.
To avoid paying unnecessary fees, it’s best to keep your purchases under control. If you’re using your prepaid cards, always prioritize the most important things such as purchase expenses – These can include the groceries and working supplies that you buy every month, transportation, and clothing. If possible, try to divide your purchases into two categories namely essential and discretionary expenses. Although your budget can make room for discretionary expenses, it’s best to prioritize the essential ones so you can manage the use of your prepaid cards better.
Moreover, your prepaid cards can also be used as a budgeting tool to ensure you’re always on top of your monthly budget. For example, you can only load a certain amount of budget for your groceries, strictly use it at the supermarket, and when the money is already spent, you’ll automatically stop spending. This can be a great way to help you manage your spending habits while reducing the costs and risks and more importantly, improve your financial future.
4. Use Direct Deposit For Money Reloading
Generally, many reloadable prepaid cards have different reloading options. These can include bank account transfer, transfer from another prepaid card, and many more. However, if you’re looking to manage your prepaid cards efficiently, using direct deposit for money reloading can be an excellent option. That’s because direct deposit is free compared to other options which usually come with a fee.
When you use direct deposit for reloading your prepaid card, you can save a lot of money because no fees will be paid. Also, direct deposit is one of the most convenient way because it comes directly to your income source and doesn’t need an intermediary to complete the reloading of cash. Therefore, if you choose the best prepaid card and use them on a regular basis, utilizing direct deposit for money reloading can be a perfect way to save money and manage your cards properly.
Indeed, the need to use prepaid cards has become more acute as more people start becoming more conscious of their finances. As such, there’s a need to become familiar with the different ways that prepaid cards work and how you can manage them properly in order to ensure that they continue to perform well and remain cost effective.