Prepaid credit cards are great products that are now offered by a wide variety of vendors. They have many advantages to your standard credit card and in this article we will go over what they are, their advantages and how they can be used.
Straight away there is one huge advantage to prepaid cards over your standard everyday credit card that can be obtained from a store, supermarket or bank. When you apply for a standard credit card it is almost guaranteed that the company is going to run a credit check to see how good you appear to be with paying back money and paying bills on time. The good thing about a prepaid credit card is that this is not the case. Because a credit check is not ran on anyone who applies, it means almost anyone can obtain a credit card and in today’s world you must have a credit card if you wish to do many things, including lending a car or booking a night in a hotel for example. www prepaidgiftbalance com
Another feature that draws many people to choose a prepaid card over a standard one is that you actually never owe money to the card vendor. “Prepaid” means that you must pay the balance into the account before you can use the card; therefore in essence the card company owes you the balance available. This feature has many other benefits than just one as it also allows us to choose our own balance providing a sense of credit management.
People that are struggling with bad credit have plenty of problems when they are trying to find financial aid and these prepaid credit cards can provide just that. As mentioned above anybody can obtain a prepaid card as long as they have money to make the prior payment.
Credit cards are often used to help maintain a good credit score, this is because you will have to pay a bill every month and you make multiple purchases and payments in a month. Every time you manage to pay a phone or gas bill on time it is reported to credit bureaus and it will increase your score gradually, the same theory applies with these types of cards.
Every time you make a purchase and pay of the credit on time you score will go up, now for someone with bad credit you can’t get a regular credit card so you would take out a prepaid solution instead. By using the card on a regular basis and always paying extra money into the account after a payment you will quickly and securely regain a good credit rating.
There are charges applied to prepaid credit cards however they will be significantly smaller than that of a standard card, this is typically because you never owe the vendor money however it will be useful to know and understand what you will be charged for. Different vendors will charge different things at different rates, however there are various websites over the internet that will provide you with many offers so you can find the best prepaid card that applies to you.
Prepaid cards are a great financial solution and if used efficiently will help you when you are need of extra cash that you forgot you had, however it is vital to keep a steady knowledge of how much money you have available on the card to ensure you never go into negative standings with the vendor.