A prepaid credit card is a card that works via an individual topping up its balance prior to using it. There are many prepaid credit cards available today and they are popular for a whole host of reasons. In particular, they are available to anyone; even those with bad credit, and via the acquisition of a prepaid credit card you can actually start and build your credit rating back up.
So why should you choose a prepaid credit card and start to rebuild your credit rating?
1) No chance of debt
There is no chance of your credit history diminishing as there is no chance of debt with a prepaid credit card. This is because you can only do transactions if you have the money in your account to complete them, therefore you can only spend money that you have. You are in complete control of your spending and your funds, and this is made even easier by the use of internet banking to make sure you are always in reach of your account. You also need not fear if the unfortunate situation arises and your card is lost or stolen; these cards are secure and safe and your money will be transferred into a new account and you will be issued a brand new card. If you’re already in debt, it’s worth looking into the likes of DTSS.us programs for debt relief for assistance.
2) No excess fees or hidden charges
This links to the first part and further reiterates the point that you will not get into debt with the use of a prepaid credit card. As the money is all your own you do not have to fear overdraft charges or interest payments, there are no late payments or over the limit fees. You only spend what you have so you need not fear accidentally delving into another avenue of money and subsequently being issued with payments that need to be made. This is a great advantage is one of the main reasons the card is so desirable to many, your credit rating can only improve not by hindered by this attribute.
3) Your previous credit rating will not hinder your progress
Your previous credit rating and history, no matter how bad, will not affect the process of you rebuilding it. This is because no credit check is done prior to you applying or whilst you apply for your prepaid credit card, in fact, you do not even need to have your own bank account. This is great because often people have made mistakes in the past or have a bad credit history for some reason or another and they constantly find themselves rejected when applying for traditional credit cards or debit cards. Nevertheless, with a prepaid credit card, you need not fear that this may happen as your credit history will not even be taken into consideration. Thus in essence you are essentially offered a clean slate and the perfect chance to rebuild your credit rating without the past getting in the way.