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THE INSIDE SCOOP ON PREPAID CREDIT CARDS

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<html> <head> <title>THE INSIDE SCOOP ON PREPAID CREDIT CARDS</title> </head> <body> <h1>THE INSIDE SCOOP ON PREPAID CREDIT CARDS</h1> <div class="info">Author: <a href="http://carminolivier.articlealley.com/">Carmin Olivier</a></div><div class="body">Not everyone can qualify for a credit card. With past credit problems such as bankruptcies, repossessions, or even divorces, some people do not meet the stringent qualifications set forth by credit companies to receive a line of credit. However, there is a way to get your foot in the credit doorway without the best credit history: a prepaid credit card.<br /> <br /> How does a prepaid credit card work?<br /> <br /> Whether making a last-minute utility payment, completing an online purchase, or reserving a rental car, you can use a prepaid credit card just as you would a standard credit card. Lenders offer prepaid MasterCards or Visa cards that look exactly like the regular cards. Neither you nor the store clerk will be able to tell the difference.<br /> <br /> To receive a card, fill out the lender's application and open an account. You are required to deposit a minimum balance to begin your line of credit. After your account is established, you can use your card to charge items up to your balance limit.<br /> <br /> Pros<br /> <br /> · A prepaid credit card is easy to get. It requires no other qualifications other than your down payment. The cards are available online and at several retail stores.<br /> · Your credit limit is completely under your control. You can have as high a limit as you wish, as long as you deposit the cash to meet it.<br /> · With the prepaid card, there are no interest charges or annual fees.<br /> · When you use your card, you aren't accumulating any more debt. In fact, by making your credit card payment on time, you are actually improving your credit rating.<br /> · You can use your prepaid card anywhere they accept MasterCard or Visa cards.<br /> <br /> Cons<br /> <br /> · Prepaid cards can be expensive to establish. A set-up fee of $5 to $50 is charged when you make your opening deposit, and an additional fee is charged every time you add more money to your account. These fees, on top of the money you have to put up to get the card in the first place, can be prohibitive to someone on a tight budget.<br /> · With a standard credit card, you wouldn't be charged a set-up fee or an annual fee. Although, the interest you would be charged on your credit card payment would make up for this in the long run.<br /> · The money you put down in the beginning is often a big deterrent to people in need of a line of credit. However, if you tend to spend over your credit limit, this system of only purchasing what you can afford may be a good way to retrain your spending habits.<br /> · Some service providers will not accept prepaid cards for automatic payments. Check with customer service departments before you make plans to pay with your new card.<br /> <br /> A prepaid credit card is a great way to build up bad credit. But it's vital that you practice good financial habits along with owning the card. Make your credit card payment on time and in full. Manage your money with a budget and start a small savings account for emergencies. If you use your prepaid card and pay it regularly, you will eventually offset some of the mistakes you made in your financial past.<br /> </div> <div class="source">Article Source: <a href="http://www.articlealley.com/http://carminolivier.articlealley.com/the-inside-scoop-on-prepaid-credit-cards-26943.html">http://www.articlealley.com/http://carminolivier.articlealley.com/the-inside-scoop-on-prepaid-credit-cards-26943.html</a></div> <div class="author"> <div class="authorBio"></div> </author> </body> </html>

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THE INSIDE SCOOP ON PREPAID CREDIT CARDS Author: Carmin Olivier Not everyone can qualify for a credit card. With past credit problems such as bankruptcies, repossessions, or even divorces, some people do not meet the stringent qualifications set forth by credit companies to receive a line of credit. However, there is a way to get your foot in the credit doorway without the best credit history: a prepaid credit card. How does a prepaid credit card work? Whether making a last-minute utility payment, completing an online purchase, or reserving a rental car, you can use a prepaid credit card just as you would a standard credit card. Lenders offer prepaid MasterCards or Visa cards that look exactly like the regular cards. Neither you nor the store clerk will be able to tell the difference. To receive a card, fill out the lender's application and open an account. You are required to deposit a minimum balance to begin your line of credit. After your account is established, you can use your card to charge items up to your balance limit. Pros · A prepaid credit card is easy to get. It requires no other qualifications other than your down payment. The cards are available online and at several retail stores. · Your credit limit is completely under your control. You can have as high a limit as you wish, as long as you deposit the cash to meet it. · With the prepaid card, there are no interest charges or annual fees. · When you use your card, you aren't accumulating any more debt. In fact, by making your credit card payment on time, you are actually improving your credit rating. · You can use your prepaid card anywhere they accept MasterCard or Visa cards. Cons · Prepaid cards can be expensive to establish. A set-up fee of $5 to $50 is charged when you make your opening deposit, and an additional fee is charged every time you add more money to your account. These fees, on top of the money you have to put up to get the card in the first place, can be prohibitive to someone on a tight budget. · With a standard credit card, you wouldn't be charged a set-up fee or an annual fee. Although, the interest you would be charged on your credit card payment would make up for this in the long run. · The money you put down in the beginning is often a big deterrent to people in need of a line of credit. However, if you tend to spend over your credit limit, this system of only purchasing what you can afford may be a good way to retrain your spending habits. · Some service providers will not accept prepaid cards for automatic payments. Check with customer service departments before you make plans to pay with your new card. A prepaid credit card is a great way to build up bad credit. But it's vital that you practice good financial habits along with owning the card. Make your credit card payment on time and in full. Manage your money with a budget and start a small savings account for emergencies. If you use your prepaid card and pay it regularly, you will eventually offset some of the mistakes you made in your financial past. Article Source: http://www.articlealley.com/http://carminolivier.articlealley.com/the-inside-scoop-on-prepaid-credit-cards-26943.html About the Author:

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THE INSIDE SCOOP ON PREPAID CREDIT CARDS

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