Seven Common Mistakes to avoid when using Prepaid Credit Cards
Prepaid credit cards are a popular gift, and a convenient way to inhibit spending but provide yourself the wide acceptance that credit cards offer. But, oftentimes the users of these cards do not get the most out of them due to several features that can make them difficult to use. Whether you’re planning to gift a prepaid credit card to someone, or purchasing one to use on travels, heed these seven suggestions to ensure you get the most value out of these valuable purchasing tools.
Seven Mistakes made When Using Prepaid Credit Cards
Mistakes can be made with credit cards through overspending, but mistakes can even be made when using a pre-paid card that can cause the user to lose money. To prevent this from happening, keep these seven tips in mind when using or purchasing a prepaid credit card.
1. Stay with the Familiar
When purchasing a prepaid credit card to use yourself on travels, or to gift to someone, stick with the popular brands. Visa and MasterCard are accepted at vendors worldwide and by selecting these brands you are ensuring your card will be accepted no matter where you go.
2. Stay Away from Specifics
While everyone has a favorite store, it may be unwise to purchase a prepaid credit card specifically for that retailer. This severely limits what a persona can purchase, and could even tie one into paying higher prices for items that they could get on sale due to card restrictions.
3. Keep Track of Purchase
Even with prepaid cards, you need to keep track of what you are spending. Knowing how much you have left on the card will prevent a situation where you purchase over the amount available, and lack another form of payment to make up the balance.
4. Watch for Fees
Some cards charge a purchase fee when using the card, or they offer the ability to withdraw money from an ATM, but charge an additional fee to do so. These fees can add up and take away from the amount available on the card that you can use for purchase.
5. Rewards have Advantages
Many card companies offer rewards and points accumulation that can add up to free merchandise when used properly. When purchasing a card, keep this in mind as you can end up with more than your original purchase value.
6. Plan Ahead
If you’re purchasing the card to use for traveling, be sure to load plenty onto it to avoid running out of money, or paying additional fees to reload more funds. Some cards charge fees to add more money, so be sure to load plenty on it to ensure you have access to the money no matter where you are or what time of month it is.
7. Don’t Assume Acceptance
While most cards are widely accepted, especially if it’s one of the major credit cards, some vendors will not accept prepaid credit cards due to their processing fees. Make sure you carry an additional form of payment at all times to ensure you’re not scrambling in the event of an emergency.
Keeping these tips in mind will help you get the most out of your prepaid credit card, and ensure you don’t get charged any additional fees while using it.