Potential Benefits To Prepaid Credit Cards

Sometimes applications for a credit card are denied for various reasons

. It may be since your credit rating is blemished in some way producing a bad credit score. It might even be because you are simply beginning life like a new college graduate without any credit history. But there is a way to get a card with poor or no credit.

Prepaid credit cards are the answer to developing a good solid credit score. Everybody qualifies for these cards because they are prepaid meaning you're not borrowing the money for purchases. You can only spend the amount of money that has been uploaded on the card.

Today few individuals still pay with cash. Actually, it may be considered vital to have a credit card for such things as airline and hotel reservations. In general, if you're over 18 years old you are able to sign up for prepaid credit cards on the Internet in a matter of minutes. There are no fees or charges involved to join up, but a Social Security Number is needed to verify your date of birth.

Other information that's required is your first and last name, age, gender, email address, phone number, physical street address, city state and zip. Remember the SSN is required just for age verification. This information is required according to the Federal Law (USA Patriot Act) that requires financial institutions to record such information identification confirmation.

Prepaid credit cards function like a typical credit card except you need to deposit money into the account so you can use it. It can be used anywhere a credit card is accepted, because it's backed up by a major card companies. Money can be deposited into your account anytime, and may even be used for Internet shopping. However, they might be denied for a subscription service that needs a recurring payment each month.

Keep in mind that you can only spend the preloaded balance, so that is in essence the credit limit for your card. Your card may be used to pay bills or receive money from an automated teller machine. There is no credit check for your prepaid card, but make sure to read all the stipulations and requirements for your account.

There are many potential benefits to prepaid credit cards, however the most significant is you can never go into debt regardless of how often the card is used. You can use the card as long as there is money loaded. Your card is going to be denied if you use all the cash that had been preloaded. While this might be briefly embarrassing, having no debt is far more valuable in the future.

Building good credit is a given with a prepaid card since there's no way to enter debt. Plus there are no interest charges like you would be charged for a regular credit card. Furthermore, there aren't any personal bank details associated with the prepaid cards so they really are popular to use on vacations or on a trip. Today's society appears to prefer credit cards, therefore the prepaid plastic is the strategy to use.

by: Travis Peterson

POST COMMENT

Loans for People with Bad Credit- No Worries For People With Bad Credit History! Fair Credit Loans Monetary Assistance For Good Credit Score Personal Loans For People With Bad Credit - What Are Your Options Bad Credit Payday Loans - Fiscal Help With No Credit Confirmation Understanding Credit Card Interest Rates 12 Month Loans Bad Credit- Shocking Currencies That Free You From Fiscal Stress Bad Credit Unsecured Loans - Where Easy Finances Solve Your Trouble Credit Card Debt Relief Options – The Bets Way To Deal With Credit Card Debt Installment Loans No Credit Check- Pay All The Unexpected Bills Get Cash Same Day Loans No Credit Check With Same Day Loans The Correct Nature Of Very low Attention Credit history Cards Importance Of Credit Report In Uk: Benefitting The Potential Borrowers How To Purchase A Vehicle With Bad Credit