Are you familiar with pre paid credit cards?  Perhaps you may notice the ads that promise instant approval for anyone- even for people with no credit history or with bad credit.  True enough, anyone can easily get a prepaid credit card regardless of his/her credit rating.  But is this type of credit card for you?

Who Should Get A Pre paid Credit Card?

While pre paid credit cards offer instant approval, it’s important to understand that these are not the same as a regular credit card.  First, prepaid cards do not provide its holders with a borrowing limit.  Second, these credit cards require the submission of a cash deposit in the cardholder’s account. Third, the cardholder can only use a prepaid credit card if there is an available balance in the account.

However, despite the limitations, those who have a problem with their credit history can use pre paid credit cards to rebuild a poor credit rating.  Through regular use of this card, the cardholder can slowly but surely build up credit history without the risk of bad debt.

Who should apply for a prepaid credit card?  If you cannot qualify for a regular credit card and you want to establish or build credit, then a prepaid card is a good option.  For parents who need to send money to their kids in college, providing them with their own prepaid credit cards is the most convenient and safest way to send and receive cash.   Travelers can also use prepaid credit cards as a safer way to pay for all their travel expenses..

How to Get A Pre paid Credit Card?

Pre paid credit cards can be acquired by visiting your nearest bank or by submitting your application online.  To get approved, the applicant must first open a deposit account and submit the minimum required payment.  The amount can range anywhere from $200 to $500 and above, depending on the prepaid card issuer.  Keep in mind that the amount of your security deposit will also determine your spending limit.

Since charges are automatically paid using the funds in the cardholder’s account, there is no need to worry about additional interest rate fees.  Nevertheless, there are other costs that can be expected such as the set-up fee, maintenance fee, transaction charges, and possible penalty fees.

Can you use a pre paid credit card for establishing credit or repairing bad credit?  The answer is yes as long as your chosen issuer offers credit reporting service to the three major consumer reporting agencies.  Before making choice, check out the complete terms and conditions of the prepaid credit card.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

A lot of people today understand the important reasons behind securing their own credit cards. Because of the well-acknowledged significance of these plastic cards in today’s transactions, a lot of people do not just get one or two credit cards; sometimes people own up to four cards!

Still a lot of people are hesitant to use credit cards. If you belong to this set of people, who do not have credit history, allow us to provide reasons why you need to secure your own credit card for no credit history, otherwise known as secured credit cards.

Reason 1: Transactional Requirements

We cannot deny the fact that a lot of shops and business establishments today require people to use credit cards. Airlines, car rental services, hotels and even online shops transact with their customers using credit cards.

These business establishments require their customers to provide their credit card numbers, despite the fact that these customers are very much capable of paying for their reservations and purchases in cash. So, in order for you to enjoy the services and products of these commercial shops, you need to have your own secured credit card.

Actually it is relatively easy to get credit cards for no credit history or secured credit cards. An applicant just needs to open an account, deposit a minimum of $300 to that account, process the necessary documents for an application for secured cards, pay the processing and administrative fees, and soon he or she could enjoy the benefits of using his or her own credit card.

Reason 2: Need to Build Credit History.

Of course, it is not safe to assume that you wouldn’t need credit in the very near future. Domestic emergencies and other immediate needs may soon require you to request for credit lines from lending firms and banks. But if you do not have any credit history, most of these firms will shy away from extending you credit.

So you might as well get a secured credit card today, make purchases, and ensure that you pay off each monthly charge. This will help you establish your credibility as a debtor with excellent credit ratings, and eventually you will find banks and lending firms eager to extend you credit.

Of course these are but two of the reasons why you need to apply immediately for secured credit cards. But we hope that through the reasons enumerated above, you now realize the importance of securing your very own credit card.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Many people do not want to get a prepaid debit card until they need one. When stuck in bad credit, you will not be able to get approved for credit cards that require a good credit score. In this case, applying for a debit card gives you a guaranteed approval.

Prepaid Debit Cards for Rebuilding Bad Credit

It is good to know that prepaid debit card issuers today now provide credit reporting to the major bureaus.  This means people who need to rebuild their credit history can now use a debit card to do so.  However, prepaid debit cards are not just for people with bad credit.  Below are other benefits of using prepaid debit cards.

Avoid interest rate charges. When you use your debit card for payment, your bills will automatically be deducted from your cash deposit.  Since a debit card payment is as good as cash payment, you will not be charged with any interest rate.

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Avoid late penalty fees. Submit your credit card payment even just a day after your due date and you will incur late penalty charges.  With a debit card, you can completely forget about late fees.

Limit your spending. Credit card holders often fall in the debt trap because of maximizing their credit limit or falling behind on their payments.  Because of its limitation, using a prepaid debit card can help you exercise more control over your spending.

Send or Receive money conveniently and cost-effectively. Do you need to send money to your kids?  DO you have employees that you need to send payment to regularly?  If yes, then using a prepaid debit card is an easier and more cost-effective way to transfer money.

Sending money through Wire Money Transfer services mean paying for a service charge per transaction.  With a debit card, transferring money is free as long as your recipient uses a debit card from the same issuer.  Furthermore, your recipient can withdraw the money only a few seconds or minutes after the transfer was done.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Many people choose prepaid debit cards over credit cards for some good reasons. This article focuses on the practical advantages of prepaid debit cards for your day-to-day living.

1. Spend only the money that you have. Debit cards do not have credit lines so you are limited to only the amount of money deposited in your account. This limitation can actually be a great thing to help people exercise more control over their spending. If you don’t have funds in your account, you won’t be able to make purchases so you can avoid unplanned purchases.
2. You’re spending is limited to only what you can afford. Credit cards give its holders the freedom to spend more that what their budget permits. Prepaid debit cards may not provide that much freedom but for people who find it difficult to control their spending or manage finances can greatly benefit.
3. A convenient tool for small business entrepreneurs. For small business owners, prepaid debit cards can be valuable tools for sending and receiving payment. If your suppliers or freelance workers live far away or even outside the State, paying with debit cards is a great convenience………read more about the Advantages of Prepaid Debit Cards

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!

Some people automatically assume that anyone using a prepaid service is doing so because they have bad credit. Lets face it, a lot of times that true, but not always!

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Prepaid services are great for anyone who is:

• serious about staying on a budget – with prepaid services you know EXACTLY how much you can spend or how many minutes you have. Once you go through the money on your account you get notified to add more money. You can add the money or not, its up to you. No more surprise bills at the end of the month!
• anyone trying to get out of debt! Credit cards are too easy to run up thus leaving you perpetually in debt!
• they are good for anyone going to college – many of the credit cards have a credit builder function so you can work on building credit
• anyone who wants to stay off the credit radar! Most prepaid services don’t pull credit !
• the prepaid cell phones are great for anyone of any age. My sister gives them to her son so that in the summer when he is at his dad’s he always has a way of contacting her & she has a way of contacting him whenever she wants!

There are many ways of using a prepaid card or cell phone. You can use them for business too, i worked for a company online a few years back that gave us all a prepaid Wired card that they would load our paychecks on every 2 weeks. It worked out great. I could use it to make purchases and when I needed cash, I would just go to a store, buy whatever I needed and get some additional cash out with my purchase.

If you are considering going prepaid, now is the time to do it! I no longer want to be at the mercy of the credit bureaus!