Over the past few years the number of people who regularly use prepaid credit cards has doubled. This increase in prepaid credit card use may have you wondering if you should join in on the trend and start using one.
If you are considering using a prepaid credit card like the Reach prepaid card, here are some questions you should ask yourself before signing up for a card.
Are You Okay With Limited Spending?
Prepaid cards only allow you to use what you’ve put on the card. Unlike with credit cards where you have a line of credit and can spend as much as you want within that line, a prepaid card forces you to stick to the budgeted amount that you put on the card.
Do You Make Online Purchases?
Prepaid cards are great for people who frequently shop online. If your credit card number gets stolen and you’ve used a prepaid card, people are unable to max out your cards because they can only spend what is on the card. This feature offers a level of protection for online shoppers because their identity and credit line are protected.
Do You Need to Track Your Spending?
Prepaid cards come with a feature that allows users to track their spending. This feature allows you to see where you are shopping and how much you are spending. People who want to track their spending will benefit from this feature because they don’t have to write down their purchases in a notebook but instead can rely upon the information the card gathers.
Asking yourself these questions will help you determine if a prepaid card is right for you.
