If you have got a history of bad credit and are not able to obtain a mainstream credit card, then prepaid credit cards may be just the reply you are looking for.
First of all, although prepaid credit cards are accepted at any retail mercantile establishment where the credit card logotype is displayed, strictly speaking they are not a credit card, as the issuer supplies no credit installation to you. Rather, your disbursement bounds is determined by how much money you have got on the credit card at any given time.
Once the amount on the card have been spent, the cardholder can either purchase a new prepaid credit card or elect to transfer money on to the existent card, depending on the card program.
Although prepaid credit cards sound very like debit entry credit cards, the two should not be confused. In the lawsuit of debit entry entry cards, any purchase for commodity or services you do will automatically be charged to you bank account for which the debit credit card have been issued. However, purchases for commodity or services made on prepaid cards travels off the balance already on the card.
Because of the prepaid nature of these cards, they have got got respective benefits, such as as:
no interest is charged
they give people with a bad credit history the option to
utilize a credit card
the credit line is variable depending on the amount on the balance of the card
That said, you still need to reexamine the terms and statuses of the application word form carefully as prepaid credit cards can have
a monthly rank fee
an application fee
a purchase fee
a monthly transaction bounds fee, i.e. if you pass over a fixed amount each calendar month you are charged a fee for any further transactions
a fee if you utilize the card to do standard atmosphere withdrawals
Nonetheless, the card is a brilliant option if you either cannot obtain a regular credit card or are tired of all the fees and interest charges that are normally associated with standard credit card.