What is a Prepaid Travel Card?

A prepaid travel card is basically just plastic cash. Though it may look like a credit card, you are not actually using any credit at all when you use the prepaid card. Instead of borrowing money from a lender, you have already loaded the necessary funds out of your own pocket. Once the funds run out, you simply reload the card if you wish to use it again.

Benefits of a Prepaid Travel Card

The main benefit of this option is it can be used internationally. Unlike cash, that must be changing into a new currency, plastic is universal. Any retailer in any location worldwide with a processing machine will be able to accept your prepaid travel card, making much less hassle for you.

Downsides of a Prepaid Travel Card

Prepaid cards do not help build your credit in any way. Further, you will have to pay a fee to open or reload the cards, meaning you will be essentially spending money just for the privilege of spending more money in the future. While the wide majority of retailers in developed countries will accept prepaid travel cards, you may still find yourself needing cash in smaller stores or restaurants and especially in developing countries. 

 


Improve Your Credit Score - Free Consultation