With a cost of living crisis taking over the world and many people suffering from bad credit - the use of prepaid cards has skyrocketed. You can use a prepaid card in most places and even as a direct deposit method, meaning they work much in the same way as a debit card would.
Over the past few years, one card has stood out from the rest. The Vanilla Visa card has received a lot of attention, but is it the best-prepaid card out there? We take a look
Why use a Prepaid Card?
If you're unable to open a bank account or you're looking for an easy way to control your spending, prepaid cards may be for you. No credit cheques are required to obtain one, and you can only withdraw or spend the amount you have deposited on it.
Essentially, it's a pay-as-you-go debit card. There is no risk of debt or expensive overdraft charges. You can also obtain a prepaid card if you lack proof of address - which you cannot do with a debit card.
With a credit card, you are borrowing money that you have to pay back with interest. To be able to get your hands on one, you must have good credit. Using a credit card responsibly will improve your credit, but it's very hard to get one unless you already have decent credit - creating a bit of a catch-22.
A good credit rating can help massively when it comes to financing things and getting good rates when applying for things like mortgages and car loans. Using a credit card in an irresponsible way can lead to terrible credit, debt, and for some, overspending.
Where can you use Them?
You will have no issue finding places to use them. You can withdraw cash from ATMs, pay for food in restaurants, or pump gas at the station. More and more places accept prepaid cards these days. They can even be used to make casino deposits online if you enjoy a gamble and want to keep your betting money separate from your living money.
A Good Tool for Teaching Financial Responsibility
Prepaid cards are also an excellent way to teach your children how to be financially responsible. Rather than linking them up to your credit account and having them learn the hard way, you can load up a certain amount of money and give your kids a timeframe on how long you want it to last.
You can do this comfortably and safely, as there is little risk of your child getting themselves into any financial trouble with a prepaid card.
Which Prepaid Card Should You Get?
There are lots of different options when it comes to picking a prepaid card. Visa, American Express, PayPal, Walmart, and FamZoo are just some of the companies that offer them. If you're looking for the best prepaid credit card with no monthly fee, Bluebird by American Express is the card for you.
If you're looking for cash back, then you can get yourself an American Express Serve Cash Back. The best-prepaid card for cash reloads is the American Express Serve FREE reloads offer. An excellent card for families is the FamZoo Prepaid Card. If you're a Walmart shopper or PayPal user, then you will want the Walmart MoneyCard or PayPal Prepaid Mastercard.
Vanilla Visa Gift Card
Vanilla Visa is a good option for those looking to open a prepaid card account. VISA is a hugely respected and reputable company, so it's only natural that their prepaid credit cards would be of the same quality as their other card options. They can be great gifts if you're not sure what someone would like for Christmas and you want a loved one to get something they truly love.
They can use the Vanilla Visa in most stores. There is a fee to activate the Vanilla Visa, so plan ahead if you're gifting it to someone. The recipient pays no fee. It's also important to note that the card isn't reloadable like some other prepaid cards - meaning you can't add additional funds once the gifted amount runs out.
Prepaid cards cater to a lot of different needs, and they are being used increasingly worldwide.