If you are wondering what a cash card really is, then this article is perfect for you. There are so many misconceptions about it that it is hard to find a proper definition, but worry not, because this article has been written with that in mind.
A Clear and Direct Definition:
A cash card can be any of the following:
- A card used to get money from an ATM or any other cash dispenser
- A pre-paid debit card
- A card with a predefined value from a store which can be used to buy product
These are the different definitions a cash card can adapt to. As you can see a credit card doesn’t fall into any of these categories because it serves for different purposes. Of course, you can use it to withdraw money from an ATM, but the fees are normally very high.
But strictly speaking, a cash card is solely designed for ATM withdrawals, but due to the intensive marketing campaigns putting emphasis on using the word “cash”, it has adopted different meanings, and it is important to know them all.
A perfect example of a cash card is the Umay Plus Card สนเช, which is available for Thai citizens and doesn’t have very demanding requirements in order to get it.
Now that you have a clear idea on what a cash card is and what isn’t, it is time to explore more about it, so you can also discover the advantages of having one with you.
Let’s Talk About Umay Plus Card:
This is the kind of card which is getting things right, because it doesn’t have demanding requirements, something that’s perfect for a country where plenty of people are considered unbanked.
Talking about the Umay Plus Card will allow you to understand the great benefits of having a cash card with you, so pay close attention.
Safer Than Cash:
Walking around with too much cash in your wallet is a bit risky, especially if you are traveling abroad to regions which are considered as dangerous. Options like the Umay Plus Card bring you an easy and safe way to carry money with you, because you can hide your card well, and hence, be less exposed to the risk of getting it robbed.
Therefore, if you want more security then you should consider getting it.
Benefits That Cash Doesn’t Offer:
By default cash doesn’t offer any other advantage besides purchasing power. For example, with the Umay Plus Cash Card you can buy in the biggest warehouses and stores like Umay+ and Easy
Buy and pay by installments.
Moreover, you can get several other benefits like cashback on purchases, special discounts and exclusive access to promos. But of course, you need to consult with the company.
It Helps In Emergencies:
You never know when you will need cash in an emergency, and this is where a cash card will come in handy, especially if it has low interest rates. According to their page the interest rates start at 19.8% per year, which is fairly reasonable when compared to other options in the market.
It won’t hurt you to have a card like this one, because it can save you in emergencies when you expect it the least.
Improve Your Credit Score:
It might be different in Thailand, but if you live in the United States then you should know that by using a cash card with similar features to this one, responsibly of course, you can improve your credit score, especially if you have none.
You probably know that a good credit score is very important, because with none or a bad one you will have several problems in your life in several aspects: employment opportunities, when requesting a loan, etc.
Now that you know the benefits of having a great cash card, it is time to talk about how to use it responsibly, because if you go over the board with it then you will find yourself immersed in very deep and serious problems.
How to Use a Cash Card Responsibly?
Getting one is one thing, but using it with responsibility is a completely different one. Unfortunately, many persons really go over the board with their spending, that’s why you need to learn how to use it with control.
Set a Budget and Stick to It:
The cornerstone of keeping your finance in a good state is to set a budget and stick to it. If you don’t know how much you need to spend to support your lifestyle, then chances are you will end up spending more than you really need in things that are completely unnecessary.
When you have a clear limit to follow it is far easier to stick to it, so go ahead and do it, because if you don’t set it then it will easy for you to lose control, and this will end up damaging your finances.
Reserve It For Emergencies:
Using a cash card in a daily basis instead of cash can put you into serious problems, because remember that there is an extra interest you have to pay. That’s why you should reserve it for emergencies or situations that truly merit it.
It Is Just a Tool:
Relying on your cash card to solve everything is definitively a big NO. It is just another tool you have at your disposal to make your life easier, especially when you really need it. Using a cash card responsibly requires control, that’s why you need to make sure you use this tool with plenty of responsibility, because otherwise, it will drag you into serious economic problems.
Conclusion and Final Words:
You’ve learned many new things today. Now you know what a cash card really is, what you can use it for, what are its advantages and how to use it responsibly. If you have any question or doubt, make sure to comment it below so we can get back to you as soon as possible.