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    Are Prepaid Credit Cards Worth It When Traveling?

    Managing your money while on vacation is an unwelcoming task. First, you have to carry cash or traveler’s checks everywhere you go. You also have the possibility of spending way more money than you had planned on. Worst of all, if you misplace the cash that you have, there is no way to replace it. Now, prepaid credit cards are a new way to make traveling a safe and economical experience.

    Bought a travel wallet :(
    A travel wallet mroach / Foter / CC BY-SA

    Many different companies offer a prepaid credit card targeted for traveling. You do not need to have your credit checked to receive it and it does not go on your credit score. Instead, you will receive a credit card with a zero balance. You load the amount of money that you choose onto the credit card. That’s it right? Wrong. There are a lot of different factors that come into prepaid credit cards. They are a lot more convenient, since you only have one thing to carry, but many retail locations do not except credit cards as a form of payment. If this is the case, you can use your prepaid credit card at any local ATM. However, this comes at a cost. Many prepaid credit cards charge you a fee of $2 or $3 just to take your money out at an ATM. If you do this a few times over your trip, the fees add up.

    One plus to having a prepaid credit card is that you are 100% protected. If you happen to lose the card, the company will direct you to the nearest location that will reimburse you all the money that was on the card. If you were carrying cash and lost them, you’d be out of luck.

    Another positive yo carrying a prepaid credit card is sticking to budget. Before you go on your trip, you should put only the amount of money that you want to spend on the card. Once you reach your limit, you will not be able to spend anymore money. This will keep you from going over budget. However, since sometimes unforeseen financial problems occur, you might want to have a regular credit card or a check with you in case you need to pay for something.

    As with any regular credit card or bank you want to research each prepaid credit card company. Some come with hidden fees and are not available in all countries. If you find the one that meets all your needs, then using the prepaid credit card will not only make your trip go a lot smoothly, but coming home from the trip and seeing your bank account the same as you left it will keep your stress level down.

    MikiMo
    I have spent the past 15 years in the travel industry. Today focused on promoting different ways of traveling, I'm in the process of creating few travel websites, which will be launched shortly. I have a great passion for travel and the travel industry. My goal here atTtripOutlook is to connect to other proffessionals in the travel industry and to exchange experience.

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