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Prepaid credit card, for what and why?

Rechargeable credit card and proper financial conduct

The feeling that the cash has disappeared from between their fingers accompanies the financial conduct of many. Many families do not know what they are spending large sums of cash on, and there are also those who choose not to maintain a bank account or who are informed that due to the state of their account they will temporarily not be able to manage a bank account, because their account is limited or for any other reason. In cases where dealing with central cash and having a large amount of cash at home or in one’s pocket is inconvenient, using a prepaid credit card can be a successful solution. A prepaid credit card is also an excellent solution for safe online purchases.

What is a prepaid credit card?

A prepaid credit card is an anonymous card issued without specifying a bank account name and number. Such a card can be issued at branches of the Postal Bank, in financial institutions and through various consumer clubs. The terms of each card are different, there are one-time and some are rechargeable, there are those in which the amount of transactions is limited and some that are not, some are suitable for international shopping and some are not, there are cards that can be withdrawn at an ATM and some that are not, there are cards that can be canceled and the balance transferred to another card and there are those that in case they are lost, the money will go down the drain.

Issuing the card involves a fee in some cases, as does charging it.

Prepaid cards issued by customer clubs entitle you to various discounts within the club.

Benefits of using a prepaid card

  • Control of expenses – plan what will be used and what the amount is and argue accordingly.
  • Separate from the bank account – there is no need to have a bank account in order to issue a card.
  • Online shopping confidence – enables safe purchases online and over the phone.

Who is eligible to use the card?

The prepaid card is not suitable for everyone, and like paying in cash, using a prepaid card requires prior arrangement.

For those who want to control their expenses, the card can serve as a substitute for the “envelope method”. In the envelope method, the entire salary is withdrawn and divided into envelopes according to types of expenses. The amount in the envelope is used to pay for the specific expense, and limiting the use of money in the envelope only to the expenditure to which it has been allocated allows you not to exceed your budget. Similarly, you can charge several prepaid cards – one card will be used to buy food for a predefined amount, an education card,

For culture and recreation. This way you don’t claim too much, aren’t tempted to spend on what hasn’t been decided, and if one of the tickets is lost or stolen, the entire salary hasn’t “gone.”

Each way of financial conduct has its advantages and disadvantages, and in order to know what suits you, you need to know yourself – what are your weaknesses and strengths and adapt the use to you. That way you can manage the money and not him with you.

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