Prepaid Credit Cards

Filed under: Prepaid Cards

Prepaid credit cards and secured credit cards are unsung heroes in the financial world. People rejected for regular credit card accounts due to poor credit can obtain a secure credit card and get back on the road to credit score recovery. Basic prepaid cards are great for anyone who needs a major credit card to book a flight, place online orders, or make hotel reservations. What`s more, they`re perfect for teaching teenagers and college students the importance of using credit responsibly, since prepaid cards limit their purchasing power.

Prepaid cards and secured credit cards are similar, but also work very differently. Prepaid credit cards are basically cash loaded onto plastic. They`re safe and convenient, but your activity is not reported to any credit bureau. Secured credit cards require a similar upfront deposit, but your spending limit is a percentage of the deposit. In essence, you`re still using credit so your activity will be reported to the credit bureaus. This can come in handy for anyone trying to re-establish credit.

A prepaid card looks exactly like any other credit card. It will have the MasterCard or Visa logo and holograms and works like a signature-based card. Your spending limit is determined by how much money you load onto the card. Reloading money onto the card is as easy as visiting the card`s website or returning to the place of purchase. Because you are not borrowing money and you`re only using your own, no finance charges or interest will accumulate. You can use the card at an ATM if you use your PIN number and stolen cards can be reported to customer service immediately, keeping you safe from unauthorized transactions.

Obtaining a prepaid credit card is easy. Many supermarkets and major chain stores carry them near the registers. You simply tell the cashier how much you want on the card and they will load it for you. There is generally a fee to purchase the card, which doesn`t go toward the balance, so be mindful of that before making the purchase. You can also obtain prepaid credit cards online, which is a great way to compare them. Prepaid cards are accepted anywhere the card brand is accepted, so if you buy a Visa prepaid card you can use it at any venue that accepts Visa. There is no interest charged and it`s safer than carrying cash.

Secured credit cards come with a lot of fees including an application and annual fee. Some even have monthly fees and extra charges when you want a credit limit increase. You can compare secured credit cards online or inquire at your bank or credit union.

Not having to carry around cash in your pocket brings a certain level of peace of mind, especially when you are traveling or shopping around the holidays. Having a prepaid credit card is ideal because you know exactly what your spending limit is but you never have to worry about losing any cash. They`re great for anyone looking for that sense of security. Secured credit cards, however, are for those that need to rebuild their credit. Maybe you have used a mortgage calculator and determined that you`ll never qualify for a decent interest rate on a home without improving your score. If that`s the case, try a secured credit card.

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There Are Some Cards For Folks With Damaged Credit

Filed under: Tips for Improving Your Credit

Check-books and paying with cash is becoming less frequent as more people are using plastic to pay for purchases. Checkbooks are being replaced by debit cards and the use of credit cards is rising. Online shopping has helped fuel the need for a credit card. Unfortunately people with bad credit are normally not approved for a credit card. It is not hopeless, there are avenues for those with bad credit histories to get financial help or return to the world of plastic.

Bad credit – credit cards are offered by many companies. This became a necessity since individuals with low incomes or credit problems would be declined for a low interest, no fee credit card. Many of these companies use what is called Risk Based Pricing. What this does is they have several types of offerings with different interest rates. The rate they offer is based on your credit score. So if you apply for one card you may get declined but offered a card with a higher rate. This is an excellent way for someone with a bit of a negative credit history to be approved for a bad credit, credit card.

So what about those individuals with no credit or extremely negative credit? They may need to look at another type of bad credit, credit card. There are several companies that target these types of people. They offer what is called a starter card. This type of card has a very high interest rate and very low credit limit. There are also a substantial amount of fees normally connected with these cards.

These cards pale in comparison to the more normal type of credit card offers but the acceptance rate is high. By using, one of these bad credit, credit cards and keeping with the terms of the agreement, making payments on time in a period of time your credit rating will be more positive. This will allow you the opportunity to apply with a better chance of acceptance for a lower rate and more favorable term credit card.

There are some individuals with such critical credit problems, a recent bankruptcy for instance, that a starter card would not be an option. If this is the case the only solution that would be left is a prepaid credit card which is sometimes called a secured card. The fact they look like a credit card it the only similarity. They need to have funds deposited to use them. You are virtually guaranteed to be accepted for this type of bad credit, credit card.

They work the same as any Mastercard or Visa but you can only spend the amount of money you have deposited. This leaves very little risk to the card issuer since you can not incur any debt with them. Because the issuer of the card will not be making any money on monthly interest rates for the balance they make their money in other ways. The can charge a fee for applying, a annual fee, an administration fee even a small percentage for every time you purchase something with the card. You will want to research several companies before applying for this type of bad credit, credit card since these fees can vary greatly.

Basically what all this means if even with a bad credit rating, nearly everyone can find a bad credit, credit card. It may take some research but it can be accomplished.

About the Author:  Byron Stone writes tips on low fiber diet and cardiac prudent diet, visit the Types Of Diets website.

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