It’s easy to make purchases with a credit card. You just reach into your wallet, pull out a small plastic card, and suddenly, you’ve bought something in seconds. The only problem is that you’re not using your money, and at the end of the month, you’re shocked to see how much money you owe to your credit card company—and that’s before you discover the cost of interest! ~ C2KURH9FW92H

Sarah was a teenager on the move. She got her first part time job, studied, and participated in extra-curricular activities. She was growing fast. Her parents had decided that it was time to teach her basic skills of money management, but she was still too young to have a regular credit card. Her parents didn’t want her to suffer the costs of owning a credit card. They didn’t want her to spend more than the assigned credit limit. They also wanted her to avoid paying interest fees and other penalties. How could she learn about spending money wisely without receiving an expensive lesson? Answer: the prepaid credit card.

One of the difficulties of shopping is managing your personal finances against the temptations of spending all of that extra money on your credit card—especially when you’re at the cashier and you’ve realized that you don’t have enough cash to pay the bill. You have two options: you can either search for a bank machine, withdraw cash from your bank account, or you can just use your credit card. Either you spend the cash in your wallet or borrow the money from your credit card and watch out for interest charges.

There are a lot of benefits to a prepaid credit card, as well as many different applications for the technology. The most obvious benefit is that you can’t go over your limit. There is no such thing as over drafting from an account. When the account is empty, you simply cannot use the card. You have to refill it before any more purchases can be made. This is very good for people who have poor credit history or impulsive spending habits. It can help people avoid debt and be a good first step in rebuilding a low credit score.

As household debt rises in Canada to record levels, the search for flexible interest rates and smooth financial transactions have become essential in managing your personal budget. With Prepaid Credit Cards, you have all the benefits of a regular credit card without the cost of interest. That’s right—0% interest!

WHAT’S THE CATCH?

Unlike traditional credit cards, you pay with your money—no borrowing! You simply add money on your prepaid card and go shopping—interest free!