If you are suffering from a very bad credit rating which could be a result of missed and delayed payments, multiple inflated debts, foreclosures, bankruptcy files, and more, there is a high chance that you will find it difficult to get a credit card.
Just like other loans, you will need a good credit rating if you are trying to avail of a regular credit card.
However, if you are not blessed with a fairly good credit rating, there is no need to fret as you can still avail of a prepaid credit card.
A prepaid credit card is not an entirely new idea offered by the finance industry.
It follows the same principle that is used by prepaid gift cards and prepaid SIM cards for mobile phones.
If you want to get a prepaid credit card, you will have to open a debit account in the same way as you will be opening a bank savings account.
You will deposit some money in that account and that will serve as the credit limit of your card.
After the deposit has been made, the bank will then issue the prepaid credit card which you can use anywhere in the same way as you can use a regular credit card.
The prepaid card usually looks like a credit card, and it also provides the same benefits, You can use it to purchase anything you want, for as long as the total amount will not exceed the amount that you have initially deposited or "preloaded" to it.
When you use this prepaid card in stores, shops, restaurants, and more, they will work in the same way as your regular credit cards will.
After you hand it to the cashier, you will be required to indicate the PIN number and sign your bill.
Once the transaction is complete, the total purchase amount will be deducted to your account right away.
Unlike other credit cards however, you will be required to pay a certain fee for setting up your prepaid account.
That usually amounts to anywhere from $5 to $10.
Moreover, the banking institution will require you to pay extra fees every time you reload your prepaid credit card.
You can reload your card though deposits at your bank, through courier services, via Pay zone or Pay point terminals, via bank transfer deposits and through cash transfers from your other credit cards.
What's particularly good about prepaid credit cards is the fact that you can use it in the same way as other regular credit cards.
However, you won't have to worry about finance charges, missed payments, and inflated debts that resulted from reckless spending and loose credit limits.
Just like other loans, you will need a good credit rating if you are trying to avail of a regular credit card.
However, if you are not blessed with a fairly good credit rating, there is no need to fret as you can still avail of a prepaid credit card.
A prepaid credit card is not an entirely new idea offered by the finance industry.
It follows the same principle that is used by prepaid gift cards and prepaid SIM cards for mobile phones.
If you want to get a prepaid credit card, you will have to open a debit account in the same way as you will be opening a bank savings account.
You will deposit some money in that account and that will serve as the credit limit of your card.
After the deposit has been made, the bank will then issue the prepaid credit card which you can use anywhere in the same way as you can use a regular credit card.
The prepaid card usually looks like a credit card, and it also provides the same benefits, You can use it to purchase anything you want, for as long as the total amount will not exceed the amount that you have initially deposited or "preloaded" to it.
When you use this prepaid card in stores, shops, restaurants, and more, they will work in the same way as your regular credit cards will.
After you hand it to the cashier, you will be required to indicate the PIN number and sign your bill.
Once the transaction is complete, the total purchase amount will be deducted to your account right away.
Unlike other credit cards however, you will be required to pay a certain fee for setting up your prepaid account.
That usually amounts to anywhere from $5 to $10.
Moreover, the banking institution will require you to pay extra fees every time you reload your prepaid credit card.
You can reload your card though deposits at your bank, through courier services, via Pay zone or Pay point terminals, via bank transfer deposits and through cash transfers from your other credit cards.
What's particularly good about prepaid credit cards is the fact that you can use it in the same way as other regular credit cards.
However, you won't have to worry about finance charges, missed payments, and inflated debts that resulted from reckless spending and loose credit limits.