The Alternative to Credit

12 May 2010 - Which Way To Pay

The Alternative to Credit

Have you heard of prepaid cards?  They may look and act very similar to regular credit cards but actually they have one major difference…

Prepaid cards come in many different varieties in Canada but the key aspect that makes them different to normal credit cards is that there is no credit facility!  In other words, you cannot borrow with a prepaid card; the money on the card is there to spend and once it has run out, it is up to you to re-load it with funds.

For people who find it hard to keep control of their credit card, a prepaid card can be a great alternative.  

It carries all of the best features of normal plastic – you can do all of these and more:

-          Pay for items and services online

-          Pay in restaurants and stores

-          Withdraw cash from ATM machines

-          Use it abroad

-          Give it to your kids

Many parents like the idea of being able to control their kids’ money and by giving them a ‘secondary’ card while holding the ‘primary’ version, they can make sure the children always have access to money.  Additionally they can keep tabs on how much the youngsters are spending, with all purchases listed just like a credit card.