But can't get one due to poor credit history? Today it's increasingly difficult to live without a credit card. Buying online without one (hotels & car hire as an example) can prove impossible.
However if you have poor credit history they can be impossible to obtain.
The Solution? Prepaid Credit Cards
What are prepaid credit cards?
Many lenders now offer prepaid MasterCards or prepaid Visa cards. These prepaid credit cards look & work exactly like regular credit cards. The store will be able to tell you're even using a prepaid credit card by looking at it or evenusing it.
The prepaid credit card concepts is very basic. You teh customer open an account, pre-load the card with a cash sum up-front, like you would with a prepaid telephone card. The prepaid credit card can then be used anywhere where mastercard or visa is are accepted.
Benefits of prepaid credit cards are: -
They're very easy to obtain. (Virtually no-one gets turned down!)
Prepaid credit cards can be purchased online or at retail stores - with NO credit check or proof of income requirements.
Fill out a short application form, pay a small set-up fee. Then pre-load the credit card with cash - this forms your "credit limit".
Best of all there are no interest charges. When using your prepaid MasterCard/Visa, you don't borrow any money.
With a prepaid credit card you can't overspend money you don't have, which maybe why you need a prepaid credit card anyway. (No borrowing = No debt!)
The card can be used worldwide. Prepaid MasterCards/Visa can be used anywhere MasterCard/Visa is accepted.
Regular use / payment will help re-build your credit history.
Disadvantages of prepaid credit cards are: -
Prepaid credit cards can be slightly expensive. A typical set-up fee is $5 - $50, when you first apply.
Eachtime you "load" more money onto the prepaid credit card card you pay a fee of $5+.
You need cash up front to "load" the prepaid card before you can use it. Given the fact that you may have previous poor spending habits this can be an advantage.
Not all prepaid credit cards can be used to make automatically recurring payments such as subscription services e.g. a magazine.
If you'd like a guide to repairing your credit then please visit Here
If you have a bad credit rating and need a loan then try Here
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