Owning a credit card can sometimes be a hassle for a variety of reasons. First of all, credit card holders are under pressure to repay all of the borrowed money within a single statement period. Sometimes, people cannot come up with large sums of money within a 30 day time span. If payments are not made by the deadline, then interest fees are charged in addition to the outstanding balance.
A prepaid card can eliminate all of the headaches and problems associated with traditional credit cards. First of all, a prepaid debit card is loaded with a person's actual money. There aren't any interest rates that are applied. There aren't any hidden fees and penalties that can be charged to a reloadable debit card. A person can only spend a certain amount of money that's loaded onto a prepaid card.
Such an option is useful for teenagers who live off their parent's money. Hard working parents can manage all of the funds of a prepaid card. For example, the weekly allowances may be easily loaded onto an account that's associated with a reloadable debit card. Parents may use smartphone apps in order to manage all aspects of such convenient payment options. A Kaiku Visa prepaid debit card is an example of a financial tool for parents that have teenagers. Personal identification numbers should be created in order to secure prepaid debit cards. It's common for teenagers to steal credit cards from their fellow peers in school and at the mall.