Over the years, prepaid cards have earned their rightful place in the hearts and wallets of many consumers. This is not really surprising as prepaid cards offer enticing and unbeatable benefits that are truly hard to resist. For starters, prepaid cards share some of the features often associated with credit and debit cards but they’re way easier to obtain and more straightforward to use.
However, just like credit or debit cards, prepaid cards need to be used properly if you want to take full advantage of all the amazing benefits it has to offer. While there is no doubt using prepaid cards is a lot safer compared to other plastic cards, there are still certain things you have to steer clear of at all times so you can make your prepaid card work for you.
Common Blunders to Avoid When Using Your Prepaid Card
Not reading the fine print
This is very common as most people don’t even bother to read the fine prints prior to using anything, their prepaid cards included. However, the importance of reading the fine print cannot be overstated. Why? It’s where you can find all the basics of using your prepaid card, the possible fees and charges included.
It would also be a good idea to acquaint yourself with the card’s user guidelines so you can use it accordingly. If you can, it would also be a good idea to check the prepaid card’s website so you’ll learn about the ins and outs of your prepaid card.
Prepaid cards are one of the most loved financial instruments available nowadays as they are not only easy to obtain (hint: no need to submit financial and confidential documents and present an impressive credit standing!), most issuers also charge way less in terms of fees and other charges.
In addition, prepaid cards can help ensure you don’t incur mounting debts or spend more than you’re supposed to. In other words, each time the balance on the card becomes insufficient or is depleted completely, you won’t be able to use the card for the time being or until such time that you are able to successfully load money onto the card again.
Not keeping the PIN to yourself
Some people take this a notch higher and write their PIN codes on the card itself or keep a copy of the PIN in the same wallet where they keep this card. While not doing this might seem like a given, it’s surprising how many people still do this practice.
Always play it safe by not writing your PIN on any paper where you also keep your cards. Ideally, you should pick a PIN that’s easy for you to remember but not too easy for other people to guess.
As tempting as it may be, don’t use numbers that represent your birthday as they’re very easy to guess. The idea is to pick a combination you can easily remember so you won’t have to write it anywhere else.
Always loading the maximum amount
While some find it convenient to load the maximum amount onto their prepaid cards, this also carries some risk especially if the card is lost or stolen. Good thing if you’ll notice you’ve lost the card right away. However, it can be a problem if you won’t realise you’ve lost your card or it has been stolen until a few days have passed.
In line with this, check your spending habits first prior to deciding on the amount to load on your card. If you’ll use your prepaid card regularly for payments, depositing a massive amount in one go would be convenient and practical. However, if you use your card sporadically, loading only a sufficient amount to cover your needs and expense is deemed ideal.