How Prepaid Cards Can Save You Money | ImageNPay
Updated: Apr 16
What many people don't realise is that prepaid cards can be a great tool to help you save money.
Yes, you heard that right!
Although prepaid cards are a method of payments their format means you could save money by using one! This is because prepaid cards help you avoid the different charges and interest rates set by financial providers, saving you money in the long-term.
Keep reading to find out the top three ways prepaid cards can save your money, or scroll to the bottom for a quick visual overview.
1) No Interest Rates
Unlike using your debit, or credit, card an prepaid card does not have any interest rates. In both instances you can spend more than you have; with a debit card going into your overdraft, and with credit using borrowed money.
Yet, with prepaid you can have peace of mind that at the end of the month you won't have a hefty bill. As you are using your own money to shop there are no interest rates. This is because, you cannot go over your budget and spend more than you have.
2) Avoid Credit Fees
With a prepaid card you can avoid many of the fees associated with credit. As we mentioned in this previous point, there are no big bills at the end of the month when using prepaid.
When using borrowed money it can be difficult to keep up with repayments, especially with high interest rates. Typically the borrowed money ends up costing you more in the long-term, but by using a prepaid card you can save yourself from having to pay more than you spent.
3) Your Own Money
By spending your own money you're saving yourself from the financial troubles associated with using borrowed money. Each time you load up your prepaid card you can choose how much you want to spend. This can help ensure you stick within your budget and reduce reliance on using borrowed money to cover high expenses.
Despite using a prepaid card to shop online and instore, they can actually help save you money in the long-term!
So, what are you waiting for?
Have we managed to persuade you on the benefits of switching to prepaid? If yes, try our digital prepaid card for yourself! ImageNPay is FREE to download in the UK on iOS.
If no, why not try our app anyway? You can find out more information about our app here or head to our Instagram for all the latest updates and news. Please do get in contact if you have any questions, we are happy to help!
You can also read all the posts in our Prepaid Benefits series here.
The Money Advice Service also has a great article covering all you need to know about Prepaid cards which you can read here.