Do you think about saving money and fulfilling your dream? Thousands of people do this every day, whether to prepare for holiday spending or go on a vacation. Another measure adopted by those who want to organize their finances is to have a prepaid credit card.

With it, you can buy what you need without running the risk of getting into debt. Thus, you keep your finances organized, carry out good financial planning, and spend only what is provided for in your budget. That’s all you want, right?

So, how about finding out more about this type of card? Here we explain what a prepaid card is and five reasons why you need it. Check it out!

What is a prepaid credit card, and how does it work?

Like prepaid cell phone plans, a prepaid card is a credit card that works only if a balance is available for the expenses in question.

It has the same function as a traditional card. In addition to paying for your purchases, you can use the existing balance for other purposes, even to pay off debts, depending on the contracted solution.

 Reasons Why You Need A Prepaid Card

1. Better spending control

If you still don’t have good control of your personal finances in your life, using a prepaid credit card can be an excellent alternative. In addition, this is often a very interesting option to start educating children financially and explaining how money management through a credit card works.

2. No need for a bank account

In addition to being less bureaucratic in terms of credit analysis, with a prepaid credit card, you don’t need to open an account at any bank. This greatly facilitates the process, as it exempts the users from bank fees.

3. There is no annuity

If the financial fees of banks and card companies keep you away from this payment method, in prepaid, this will not be the problem. The prepaid card, like the CIBC Air Canada AC Conversion Visa Prepaid Card, is free of any annuity. No cost to order the card and no conversion fee on purchases

4. Prepaid cards are universally accepted

Prepaid cards are widely accepted because they are convenient and easy to use. They aren’t restricted to a specific platform or payment merchant, so their usability isn’t limited. With a prepaid card, you can pay bills, shop online, and withdraw cash from ATMs etc.

For example, you can spend safely while traveling abroad with the CIBC Air Canada AC Conversion Visa Prepaid Card.  Simply load the card with funds and start spending anywhere VISA is accepted, whether you’re traveling or booking ahead. Use it online, at stores and restaurants, and even for withdrawing local currency from ATMs. You can load the card with up to ten currencies: US Dollars, Euros, British Pounds, Australian Dollars, Japanese Yen, Hong Kong Dollars, Turkish Lira, Swiss Franc, Mexican Pesos, and Canadian Dollars.

5. Improved management of your finances

A regular checking account with a debit or credit card attached makes it harder to keep your budget in check. In turn, prepaid cards becomes a financial planning tool.

At the beginning of the month, you define how much you can spend on purchases, recharge the card, and know that you only have that amount.

With a prepaid, you can shop over the Internet like you use a traditional credit card. The difference is that the limit you can spend is the amount deposited, and purchases cannot be made in installments. That way, you don’t generate debt and never have bills to pay.

In conclusion: Who is the prepaid card for?

Of course, anyone can use a prepaid, but there are some specific cases where it might be a great option. First, understand that it is a less bureaucratic option and does not require credit approval.

Thus, it is a good choice for those who already have past debts and could find it difficult to approve a new common credit card. In addition, people who have difficulty controlling their expenses can benefit a lot from prepaid cards. This is because they could not spend beyond the existing credit on the card.