Basic things about prepaid credit cards

By Leni Parrish on November 7, 2010

What is the main reason why a credit card application gets rejected? No, it is not mainly about one’s income but it due to his credit history. The credit history is a lender or credit card company’s deciding factor whether an applicant deserves an approval or not. The credit history is a record of financial transactions and all money-related stuff in the past. Say, credit card records, loans and even declaration of bankruptcy. Such instances would bring a negative impact into your credit record.

Now, since the credit history is the most important aspect of credit card approval, would it mean to say then that people with bad history in the past or never had a credit record can never have their own credit card? Of course not. This is the reason why prepaid credit cards are introduced.

It is very easy to have a prepaid credit card. All you have to do is apply for it, make a deposit and then you will be issued your card. Once it is handed to you, you can already start using it like your regular credit card; make a purchase, make a hotel or ticket reservation.

When you are shopping using your prepaid card, there are no worries on overspending besides it is your money you’re using. The thing though is that once you’ve maxed out the fund on your card, you need to make a deposit first before you can use it again. Still, this is for your benefit since you don’t have to burden yourself worrying about monthly payments and interest.

There might not be no interest charges applied in a prepaid card but you may be collected up to $5-10 when you apply for the card and that additional fees maybe asked from you when you decide to make additional deposit.

In a world where credit card is becoming a necessity, it pays to know that with or without a good credit score, you still can shop conveniently with your prepaid credit card. 

There are several places where you can have your prepaid credit card so it is important that you research and make a good comparison for you to have the right decision. A wise consumer and cardholder is one who makes sure that he gets what he needs and wanted. The World Wide Web is one of the best places to apply for such card. Go get one now.

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