The method of withdrawing money by loan companies is properly monopolized by standard bank transfers. It has its undoubted and huge advantages. First of all, it ensures that cash reaches the customer in record time. In some cases, it may take no more than a few minutes from the time the loan is granted to receive the money (When? You can check this in the article ” In which company will I get the loan the fastest – a review of companies”). Nevertheless, loans that do not require a bank account have become quite popular. One way to withdraw money is through prepaid card loans or, in other words, a prepaid card.
Pre-paid loans – what is it for?
This type of financing is not a new idea. However, only some time ago, due to the rapid and very dynamic development of the loan industry, it gained faithful enthusiasts. What is it about? The payer, when withdrawing money from the granted loan, does not transfer money directly to the client’s bank account, but to a specially created technical account. An ATM and payment card is attached to this account, which is then put into use by the borrower. He can freely use this card – pay with it for purchases or make withdrawals at ATMs. In functional matters, the prepaid card does not differ in any way from a regular debit card.
Of course, the borrower can use the card only up to a certain limit, i.e. to fully use the loan amount granted to him. However, just like the way you charge your cell phone, you can also top up your credit card. How? Simply applying for another loan.
What are the benefits of using a prepaid card loan?
The first and biggest advantage is of course no requirement to have a bank account. However, the prepaid card will be very convenient not only for people who do not have accounts (and these days may seem strange or even impossible), but also for those who do not want or cannot use their account. The problem may be the reluctance to provide your bank details or the use of verification applications that can directly access your banking history (e.g. Instantor). Sometimes an obstacle is also the lack of funds on the account to make a verification transfer or an account that you have has another owner or is an account SKOK, which is not accepted by most loan companies.
Of course, this is not the only advantage of such loans, and most often they are chosen mainly by those who value convenience and the possibility of comprehensive use of a card offering not only cash transactions, but also often combined with loyalty programs. What’s more, the freedom of using the card does not reduce the security of funds on your bank account and possible access of bystanders. Therefore, if the card is stolen, only the loan funds can be lost.
With so many of the advantages mentioned above, one should not forget that prepaid loans also retain other features for which payday loans are praised. It is, in particular, maintaining a very high level of discretion, the possibility of spending money for any purpose, without informing the lender or settling expenses, but also an easy loan application procedure.
How to apply for a pre-paid loan?
A person who already has experience with online payday loans should not encounter any obstacles in using this pre-paid one. The procedure for taking out a loan is just as simple and starts at the same time as all other quick loans, i.e. on the lender’s website.
As you can see, this process is extremely transparent. In addition, it is also facilitated by the fact that it does not require verification via a bank account. This will only be done upon delivery of the card – you will need to show your ID card to pick up the package.