Copyright (c) 2009 Liz Roberts
People who suffer from a history of bad credit often have a difficult time finding a credit card with the best deal. Usually, the lowest interest rates, the rewards, and the privileges are reserved only for customers with good to excellent credit rating.
Most credit cards for bad credit impose a high APR, expensive late penalty fees, annual fees, etc. If you have bad credit, you may consider improving your credit history first before applying for a regular credit card.
Why Get A Prepaid Credit Card
Can a prepaid card help you rebuild your bad credit history? In the past years, prepaid card issuers do not provide credit reporting. Today however, prepaid credit cards or debit cards can be used in rebuilding credit history. You can now choose a prepaid card issuer that offers payment reporting to the major credit bureaus so you can start improving your credit right away. Use the internet to find potential prepaid cards and spend time comparing your choices.
Unlike credit cards, prepaid debit cards guarantee your approval regardless of your credit history or employment status. Issuers of prepaid cards can afford to be more lenient when approving applications since they will not be extending credit to the cardholder.
In order to use the debit card for payment, the cardholder must first make a cash deposit in the account. Consequently, each transaction is paid off immediately using the cash deposited by the cardholder. For instance, if you have deposited $350, then that means you have $350 to spend using your prepaid card. After you have spent $350, you must make a new deposit to be able to use your card again for payment.
Paying with a prepaid credit card is a good way to demonstrate your ability to manage your finances well. Make sure you have funds in your in your funds before you pay your prepaid credit card, enough to cover your purchases. Before using your card, everything must be planned. Thus, using a prepaid card keeps you away from the risk of uncontrolled spending.
Prepaid Credit Card - Just Like A Credit Card
Technically, one can enjoy all the convenience in payment that a regular credit card brings with a prepaid credit card. It can be used for making reservations from the internet or purchasing from any online store. You can take it with you to the mall or the supermarket and pay your purchases with a prepaid card rather than cash.
However, unlike a credit card, you don't have to worry about missing your due date or paying for additional interest rate and late penalty charges. Each time you use your prepaid card for payment, your bills are automatically paid off the moment you make the transaction.
If you can't qualify for a credit card with a low APR because of your credit score, then go for a prepaid credit card. Once you have improved your credit history, then that's the time you can think about signing up for the best credit card in the market.
New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of personal loans for people with bad credit that suit your needs.
from where i can get information about different prepaid credit cards?
hello
i want to get one good credit card
but i do not know which prepaid credit cards are available and how can i campare between them.
please guide me about this.
Answer
Hi @Asif! Bankrate.com is an excellent resource to compare credit and debit cards. It gives you all the details you need about each card and allows you to start the application process with the click of a button. There are several prepaid debit card options out there, including ReadyDebit, NetSpend and Greendot.
When researching your options, make sure you pay close attention to fees. Prepaid debit cards tend to be heavy on fees, but can be a great alternative to a checking account. If you have any interest in building your credit score, keep in mind that a prepaid card will not help you do this. Because you're not borrowing money with a prepaid card - it's actually a debit card - your activity isn't typically reported to the main credit bureaus. If you'd like to build credit, a secured or unsecured credit card is a better option. Good luck!
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Prepaid Credit Cards: Juniper Prepaid MasterCard-
Actually, the US is spending money on people who have little ability to rebuild it themselves. The people in America have the freedom to make so much for themselves.