Through the years, prepaid cards have endeared their way to the hearts and wallets of many users. If we take into account all their amazing features and the peerless benefits they offer, this is not exactly surprising. One of the most enticing benefits prepaid cards offer is helping users manage their money better.
For those who struggle when it comes to adhering to the budgets they have set, prepaid cards can be a total game-changer. Prepaid cards share many great features that other popular cards like credit and debit cards have. However, they are often more preferred since they are easier to obtain and straightforward to use.
Just like their conventional counterparts, prepaid cards need to be used accordingly so you can use them to your full advantage and enjoy all the benefits they offer. While prepaid cards are way safer compared to the other plastic cards, there are still certain mistakes you need to avoid.
Common Blunders to Avoid When Using Your Prepaid Card
Loading the maximum amount all the time
While loading the maximum amount of money to your prepaid card can be very convenient, this also comes with certain risk especially if your card gets lost or stolen. You have an advantage if you notice early if your card is lost or stolen since you can have it blocked asap and protect the balance.
However, if it takes you many days to realize the card is lost or stolen, you might not be able to protect the available balance. In line with this, it would be best to load money based on your spending habits. For instance, if you use your card regularly for payments, loading a huge amount would be best.
On the other hand, if you use your prepaid card sporadically, loading only the amount that will cover your needs for the week or month would be advisable. This can help ensure that even if you won’t notice that the card has been lost right away, you won’t lose a huge sum of money.
Sharing your PIN with others
Some people write their PINs on a sheet of paper and keep the copy in the same wallet where they keep their cards. While this is undoubtedly a very reckless practice, it is surprising that many people do this. To protect your money, you need to avoid writing your PIN anywhere.
It would also be ideal that you pick a PIN combination that is easy for you to remember but hard for other people to guess. So this means, you need to avoid using your birthday as an option as some relatives or friends are aware of when your birthday is and might use it to withdraw money from your card.
Not reading the fine print
This is something that’s common among many people. Most don’t bother reading the fine prints before using their prepaid cards. However, reading the fine print is actually very important. Why? For starters, it can help ensure you are aware of all the prepaid card basics and you can use your card to the fullest.
Reading the fine prints can also help ensure you can acquaint yourself with all the amazing features your prepaid card offers. Most prepaid card providers have a website that users can visit. Check out their website and learn all there is to know about your prepaid card.
Often, websites have a FAQ page where you can read all about the important things you need to know about your prepaid card. From there, you will also learn the ins and outs of your prepaid card as well as all the charges, interests, and fees that you need to pay, if ever.