Can you save money by switching to a prepaid credit card? [QUIZ]

If you value your online privacy, you probably know that a credit card can also be prepaid. Prepaid credit cards can help you shop safer online with less risk of fraud, as you don’t need to give out your card and bank details when paying.

However, did you also know that a prepaid credit card can save you money? By switching to a cheap prepaid credit card you pay lower (or no) service costs. You don’t end up with a debt. These are just a few examples of the benefits of a prepaid card.

Use our handy online savings calculator to find out how you could save money by switching to a prepaid credit card!

The cost of using a regular credit card

According to research done in the UK by MoneySuperMarket, over half of all holders of a regular credit card have an outstanding balance. The average monthly interest paid on the balance is £121.40 a month, adding up to £1456,80 a year. In addition most regular credit card companies will charge you for a quarterly service fee. In short, we’re not always aware of the extra expenses that add up when using a regular credit card.

The benefits of using cheap prepaid credit cards

Some prepaid cards can only be used for specific goals, such as prepaid game credit cards (such as Nintendo or Play Store cards), entertainment subscription cards (Netflix for example), or for online shopping (Amazon gift cards). Other prepaid credit cards can be used the way you would use a regular VISA or MasterCard credit card.

Let’s look at the benefits of using cheap prepaid credit cards:

• There is no credit check when you buy a prepaid credit card
• Using a prepaid card doesn’t leave you with a debt
• The transaction fees when taking out cash are usually lower
• There are no (or significantly lower) service fees
• You are in control of your budget at all times
• Your prepaid card is not linked to your bank account. Should your personal card details leak online, nobody can empty out your account.
• Topping up your prepaid credit card online is a matter of seconds on Recharge.com.
• Avoid bank transfer fees by gifting a prepaid credit card or money voucher to loved ones anywhere in the world.
• Save up for trips by topping up your prepaid card on a regular basis. Then use your prepaid card for your holiday!
• You can choose to use a prepaid credit card that you can pay with where VISA or MasterCard credit cards are accepted.
• Give yourself or loved ones prepaid credit cards for specific shops, subscriptions and goods.
• You can send anyone with an email address a prepaid credit card as a gift.

We offer a safe, quick and easy way to buy a prepaid credit card on Recharge.com. Tip: Choose a prepaid VISA or MasterCard plastic prepaid credit card if you’d like to use your card offline.

Need help choosing the right prepaid credit card? Take our short quiz and find the most suitable options.

Saving money by managing your finances smartly

Make the most of your budget by making small changes in your life. A prepaid credit card can be used to set money aside for a certain goal (a larger purchase or a holiday), and makes it easy to avoid overspending. One example of this is allowing yourself to go on a clothes shopping spree whilst only spending the money that you put on your prepaid card. Check out our money saving tips for more easy budgeting suggestions!

The perks of your regular credit card

Some suppliers of regular credit cards offer benefits to cardholders; free access to airport lounges, or points that can be spent on items or can be used for discounts on purchases. If your are using your current regular credit card often, you may benefit from the perks offered by your credit card supplier. However, nothing is really free in life. Indirectly you are paying for these perks, for example through your credit card service fee.

If you are satisfied and happy with your regular credit card, you may still be able to save money by paying for entertainment, gaming and online shopping with a cheaper prepaid card. For example, by not paying interest and a service fee. Make sure to read more about the differences between credit cards and prepaid credit cards.