Prepaid Cards - The Answer For Bad Credit

What to do if you want a credit card but can’t have one? Prepaid cards! They’re the answer for bad credit that prohibits you from owning one of those traditional credit cards. Almost anyone can apply for prepaid cards and get approval. Just meet the basic requirements: you must be at least 18 years of age, have a verifiable US address and a valid social security number, and you’re good to go.

If you’ve had a case of money mismanagement and ran into credit card debt, or you were delinquent in your house or auto mortgages, your credit score takes a plunge and it will take a few more years before you can qualify for the credit card you used to have. Prepaid cards however are easier to purchase and own. Take a look at their requirements, or lack of them.

1. Prepaid cards don’t do a credit check. If you have bad credit history, that’s okay. There’s no poking around, looking for skeletons in the financial closet before the company approves your application. You simply sign up and go to their website or give them a call.
2. Prepaid cards don’t ask for your bank account information. Whatever amount is in your bank account is of no concern to the issuing prepaid card company. That’s because you won’t be taking out a loan from them by using their prepaid cards, unlike the traditional credit cards where you use their money whenever you purchase with their card.
3. When you use your prepaid cards to pay your bills, the card company reports your on-time monthly payments to one or more national credit bureaus. In effect, they are helping you build a good credit history or regain a ruined credit rating. In time, lenders will be offering you a credit line with a lowered interest rate.
4. Prepaid cards don’t allow you to spend more than the amount that’s loaded in the card. If you can control your spending urges, prepaid cards do it for you. There’s no going overboard and there are no overdraft fees to pay. In that way, you won’t go into bad credit yet again.

There are so many prepaid credit cards available. Scrutinize each one and compare the fees involved, and perks and benefits. Some cards charge fees that may be waived under certain conditions, such as loading a minimum monthly amount or making a number of purchases monthly. These features are real money savers, so don’t brush them off as trivial matters.

A few prepaid cards that came up on private surveys of consumers’ preferences include the BuyRIGHT Card for its many options of reloading (direct deposit, Western Union, MoneyGram Express Payment). There is also the Mango Card for its affordable insurance coverage in case the card is lost or stolen and the Black Diamond RushCard for its many health discount plans. The Vision Silver Card and YAP Card are other prepaid cards that came up tops in surveys. Bad credit? Nah, prepaid credit cards are the answer.