Sometimes applications for any credit card are denied for various reasons. It could be since your credit rating is blemished in some way producing a bad credit score. It could also be because you are simply beginning life like a new college graduate without any credit score. But there’s a method to get a card with poor or no credit.
Prepaid credit cards would be the solution to developing a good solid credit history. Everybody qualifies for these cards because they are prepaid meaning you’re not borrowing the cash for purchases. You can only spend the amount of money that has been uploaded to the card.
Today few people still pay with cash. In fact, it can be considered vital to have a credit card for things such as airline and hotel reservations. In general, if you’re over 18 years of age you are able to sign up for prepaid credit cards on the Internet in a matter of minutes. There are no fees or charges involved to join up, but a Social Security Number is needed to verify your date of birth.
Other information that is required is your first and last name, age, gender, email address, phone number, physical street address, city state and zip. Remember the SSN is required just for age verification. This post is required based on the Federal Law (USA Patriot Act) that needs finance institutions to record such information identification confirmation.
Prepaid credit cards function just like a typical credit card except you need to deposit money in the account so you can use it. It can be used anywhere a credit card is accepted, because it’s backed up by a major card companies. Money can be deposited to your account anytime, and may even be useful for Internet shopping. However, they might be denied for a subscription service that requires a recurring payment each month.
Remember that you can only spend the preloaded balance, so that is in essence the credit limit for your card. Your card may be used to pay bills or receive money from an automatic teller machine. There is no credit check for your prepaid card, but make sure to read all the stipulations and requirements for the account.
There are lots of benefits associated with prepaid credit cards, however the most important is you can never go into debt regardless of how many times the card is used. You can use the card as long as there’s money loaded. Your card will be denied if you use all the cash that was preloaded. Although this might be briefly embarrassing, having no debts are much more valuable in the long run.
Building good credit is a given with a prepaid card since there is no way to enter debt. Plus there are no interest fees like you would be charged for a regular credit card. Furthermore, there are no personal bank details associated with the prepaid cards so they are popular to make use of on vacations or while traveling. Today’s society appears to prefer credit cards, so the prepaid plastic is the way to go.
George Henderson is very familiar with prepaid cards. He has been in the buiness for several years. Using reloadable credit cards can provide you with information relating the best way to work specifically on your finances.