5 Reasons Why Prepaid Cards Are Perfect For Students

Managing your finances as a student can be tough.  Making your money stretch far enough to pay rent and bills and buy vital course equipment whilst having enough left to eat and drink isn’t always easy.

One way of avoiding getting into steep debt as a student is to use a prepaid credit or debit card.  You load up a prepaid card with money and then use it to withdraw cash at an ATM or to pay for goods and services.  There are lots of great reasons to consider a prepaid card, and here are our top five.

You can’t go overdrawn

A Halifax study in 2007 found that 73 per cent of students used a bank overdraft with the average undergraduate owing £952.

One of the main advantages of a prepaid card is that you can’t go overdrawn.  You can only spend the money you load onto a prepaid card and so once your cash is gone, you can’t spend any more.  This means that you can avoid running up large credit card bills or bank overdrafts.

Your card can be topped up regularly

It is easy to top up a prepaid card online and in the High Street.  So, if you receive a regular payment from parents or another source, this can be paid directly to your prepaid card.  You can also top up your own card from your savings as and when you need to or you can even have wages from part-time employment paid directly to your card.

You can keep track of your spending

One of the advantages of a prepaid card is that you are able to monitor your spending.  By analysing your card statements you can work out where your money is going, allowing you to make economies and to keep control of your expenditure.

You can manage them online

Keeping track of your balance and your spending on a prepaid credit card is easy.  Most prepaid debit or credit cards can be managed online meaning you can see your balance, undertake transactions and top up your card any time of day or night.

Most prepaid cards can also be used to pay for goods and services on the web.

They’re secure

Unlike cash, prepaid credit and debit cards are secure.  If your card is lost or stolen you can place an instant stop on your card to protect your balance.  You don’t have to carry sums of cash on you as you can simply withdraw money from an ATM as and when you need it.