Do Pre Paid Credit Cards Work With No Credit?
12:17 AM
Many individuals would try to use pre paid credit cards to help them get out of debt. Some even think that a credit card would only end up worsening their debt situation. However with a pre paid credit cards you need to fund the account with money before you can spend it unlike a normal credit card. This card is the best option for anyone with a bad credit.
How Pre Paid Credit works with bad Credit?
When your credit is poor it is not easy to get any credit if you need it. A credit card comes in handy for the convenience and any emergency use. So what exactly is a pre paid credit card?
It looks just like a normal credit card: branded with the familiar logos such as Visa, American Express, and Mastercard-- but the difference is that the card is pre-loaded with your spending balance. In other words, you fund a certain amount into your own account, and you can spend against that balance using your card.
Pre paid cards work even if you have bad credit. You do not require to be pre-approved as you are spending your own money which you have deposited which is similar to a debit card.
Using Pre Paid Credit Cards?
Just deposit money into your card account. Your spending limit is based on how much you put into your account. As you make purchases using your card, the amount spent is reduced from your total account balance. Obviously, once you spend all the money in your account, you will need to make a deposit to fund your account again.
Calling them "credit " card can be misleading as there is no money being given on credit but these cards are used like just the ordinary credit cards.
A basic advantage of prepaid credit card is you can avoid overspending as is common with the regular cards and also no interest fee is charged.
Benefits of Prepaid Credit Cards.
1. These cards are accepted in the same places the normal cards are used.
2. You will not incur any additional debt since you are using your pre-funded balance.
3. You can still get these cards even if you have poor credit
These cards are a great option for those who have damaged credit but still need to have access to a credit card.
Pre paid credit cards work just like normal credit cards, with one major difference: the money is nor borrowed from a creditor, but instead the account is pre-funded in an amount of your choosing, and any expenditures are just subtracted from your account balance.
How Pre Paid Credit works with bad Credit?
When your credit is poor it is not easy to get any credit if you need it. A credit card comes in handy for the convenience and any emergency use. So what exactly is a pre paid credit card?
It looks just like a normal credit card: branded with the familiar logos such as Visa, American Express, and Mastercard-- but the difference is that the card is pre-loaded with your spending balance. In other words, you fund a certain amount into your own account, and you can spend against that balance using your card.
Pre paid cards work even if you have bad credit. You do not require to be pre-approved as you are spending your own money which you have deposited which is similar to a debit card.
Using Pre Paid Credit Cards?
Just deposit money into your card account. Your spending limit is based on how much you put into your account. As you make purchases using your card, the amount spent is reduced from your total account balance. Obviously, once you spend all the money in your account, you will need to make a deposit to fund your account again.
Calling them "credit " card can be misleading as there is no money being given on credit but these cards are used like just the ordinary credit cards.
A basic advantage of prepaid credit card is you can avoid overspending as is common with the regular cards and also no interest fee is charged.
Benefits of Prepaid Credit Cards.
1. These cards are accepted in the same places the normal cards are used.
2. You will not incur any additional debt since you are using your pre-funded balance.
3. You can still get these cards even if you have poor credit
These cards are a great option for those who have damaged credit but still need to have access to a credit card.
Pre paid credit cards work just like normal credit cards, with one major difference: the money is nor borrowed from a creditor, but instead the account is pre-funded in an amount of your choosing, and any expenditures are just subtracted from your account balance.
About the Author:
Lisa Max will show you practical ways to get out of debt. This is a well researched website, providing information about debt reduction. As a seasoned investor and owner of numerous properties, she is well acquainted with ways to help in debt relief. Visit her website and get answers to your debt related questions at www.smartdebtrepair.com.
You can leave a response, or trackback from your own site.