What are Prepaid Credit Cards?
Many lenders now offer prepaid MasterCards and/or prepaid VISA cards. These cards work exactly like a regular credit card. In fact, neither you nor the store will be able to tell you’re using a prepaid credit card simply by looking at it or using it. The concept of prepaid credit cards is really very simple. You open an account and “pre-load” the card with cash up-front, similar to a pre-paid calling card. Then you use your prepaid MasterCard or VISA anywhere these cards are accepted.
Many lenders now offer prepaid MasterCards and/or prepaid Visa cards. These cards work exactly like a regular credit card. In fact, neither you or the store will be able to tell you’re using a prepaid credit card simply by looking at it or using it. The concept of prepaid credit cards is really very simple. You open an account and “pre-load” the card with cash up-front, similar to a pre-paid calling card. Then you use your prepaid MasterCard or Visa anywhere these cards are accepted. Advantages of prepaid credit cards: • They’re extremely easy to get. You can purchase a prepaid credit card online or at many local retail stores with no credit check or income requirements. All you have to do is fill out a short application, pay a small set-up fee, and load the card with cash (this amount will be your “credit limit”). • There are no interest charges. When you use your prepaid MasterCard or prepaid Visa, you’re not borrowing any money. The fact is you’re using your own money so you pay no
Many people are rejected after filling out a credit card application because of poor credit. The problem with this is that a major credit card is needed to make reservations for hotels, motels, car rentals and airline flights. Credit cards are also necessary when placing orders online or over the phone. Does this mean a person with bad credit can’t do any of these things? Not if that person has a prepaid credit card. A prepaid credit card account is opened by depositing money into that account, much in the same way you would make a deposit to open a checking or savings account. Once you have money in your account, you’re issued a prepaid credit card that can be used anywhere one would use a regular credit card. The best part of the prepaid credit card is that you can charge to your heart’s content and you won’t be in debt. The money is yours and once it’s gone, you can’t spend any more until you make another deposit. There are no bills and no interest charges. It’s the same principle a
Personal bankruptcy is a very serious decision. One has to carefully weigh his options and the consequences of his decisions before taking this step. Bear in mind that a record of bankruptcy will stay on your personal credit report for at least seven years. A record of bankruptcy will impose certain limits and restrictions on your future plans. Therefore, being stuck in bad credit doesn’t mean you have to think about filing for bankruptcy right away. Consider all other possible options first to recover from bad debt.
