For the sake of keeping your budget intact, it would be understandable why you'd want to go with prepaid debit cards. After all, they are pretty convenient to carry around and they can be used at a number of stores with little to no trouble at all. With that said, there are a few precautions to consider, even if you are entirely sold on the idea. Here are 3 of said precautions, supported by Bob Jain, in order to make your life that much easier.
According to financial authorities like Jain, one of the reasons why these cards may not be used is because they are limited. Even though they can be utilized at various outlets, there is only so much that they contain in the way of funds. Perhaps you want to add more funds to it, though; you would have to go through a bit of a process in order for this to happen, which would probably make it that much likelier for you to use another option. There are limits to consider, as Bob Jain would tell you.
It's important to note that this type of card will not be effective in bettering your credit history. For all intents and purposes, these cards are cash catalysts, meaning that they are not exactly rooted in credit in the sense that we know it to be. If you rely on prepaid debit for payment purposes, chances are that your credit score is going to suffer. For the sake of keeping your credit score as high as possible, try to make use of alternate options.
Prepaid debit cards, depending on the specific cards utilized, may also have hidden fees to take into consideration. This is true whether it comes to adding extra money onto cards or the possibly hidden interest rates attached to the cards in question. It's in your best interest to stay in touch with your bank, inquiring as much as possible on the matter. Otherwise, you may not want to go with this option if you are looking to minimize the amount of added fees on your end.
With this level of discussion done, it is clear that there are reasons as to why prepaid debit cards are utilized. They can prove to be some of the best money-saving tools and I believe that, if handled correctly, they can teach kids about the importance of saving money in the long term. Of course, these are a couple of pros that go with the cons. Both of these should be considered with prepaid debit options, since they will be preferred by some people more than others.
According to financial authorities like Jain, one of the reasons why these cards may not be used is because they are limited. Even though they can be utilized at various outlets, there is only so much that they contain in the way of funds. Perhaps you want to add more funds to it, though; you would have to go through a bit of a process in order for this to happen, which would probably make it that much likelier for you to use another option. There are limits to consider, as Bob Jain would tell you.
It's important to note that this type of card will not be effective in bettering your credit history. For all intents and purposes, these cards are cash catalysts, meaning that they are not exactly rooted in credit in the sense that we know it to be. If you rely on prepaid debit for payment purposes, chances are that your credit score is going to suffer. For the sake of keeping your credit score as high as possible, try to make use of alternate options.
Prepaid debit cards, depending on the specific cards utilized, may also have hidden fees to take into consideration. This is true whether it comes to adding extra money onto cards or the possibly hidden interest rates attached to the cards in question. It's in your best interest to stay in touch with your bank, inquiring as much as possible on the matter. Otherwise, you may not want to go with this option if you are looking to minimize the amount of added fees on your end.
With this level of discussion done, it is clear that there are reasons as to why prepaid debit cards are utilized. They can prove to be some of the best money-saving tools and I believe that, if handled correctly, they can teach kids about the importance of saving money in the long term. Of course, these are a couple of pros that go with the cons. Both of these should be considered with prepaid debit options, since they will be preferred by some people more than others.
About the Author:
If you would like more details about the perks of Bob Jain, please consult Bobby Jain today.. Free reprint available from: 3 Cons Of Prepaid Debit By Bob Jain.
No comments:
Post a Comment