How Prepaid Credit Cards Achieve Your Goals

By Adam Smith

Sometimes applications for any credit card are denied for different reasons. It may be because your credit history is blemished in some way resulting in a poor credit rating. It might even be because you are simply starting out in life like a brand new college graduate without any credit score. But there's a way to obtain a card with poor or no credit.

Prepaid credit cards would be the solution to creating a good solid credit history. Everybody qualifies for these cards since they're prepaid meaning you are not borrowing the cash for purchases. You are able to only spend the money which has been uploaded to the card.

Today few people still pay with cash. Actually, it can be considered vital to have a credit card for such things as airline and hotel reservations. In general, if you are over 18 years of age you can register for prepaid credit cards on the Internet within minutes. There isn't any fees or charges involved to join up, but a Social Security Number is required to verify your birth date.

Additional information that's required is your first and last name, age, gender, email address, phone number, physical home address, city state and zip. Remember the SSN is used only for age verification. This information is required based on the Federal Law (USA Patriot Act) that requires finance institutions to record such information identification confirmation.

Prepaid credit cards function like a typical credit card except you need to deposit money in the account so that you can use it. It can be used anywhere a credit card is accepted, because it is supported by a major card companies. Money can be deposited to your account anytime, and can even be used for Internet shopping. However, they might be denied for a subscription service that needs a recurring monthly payment.

Keep in mind that you can only spend the preloaded balance, so that is in essence the credit limit for the card. Your card may be used to pay bills or get money from an automatic teller machine. There's no credit check for the prepaid card, but be sure to read all of the stipulations and requirements for the account.

There are lots of benefits associated with prepaid credit cards, but the most significant is you will never go into debt regardless of how often the card is used. You can use the card as long as there is money loaded. Your card is going to be denied if you are using all the cash that was preloaded. Although this may be briefly embarrassing, having no debts are much more valuable in the long run.

Building a good credit score is a given with a prepaid card since there's not a way to go into debt. Plus there isn't any interest charges like you would be charged for any regular credit card. Furthermore, there aren't any personal bank details associated with the prepaid cards so they are popular to use on vacations or while traveling. Today's society appears to prefer credit cards, so the prepaid plastic is the strategy to use.

About the Author:

Adam Smith is really familiar with prepaid credit cards. He has been in the industry for over a decade. Using reloadable credit cards can provide you with information relating the best way to work specifically on your personal credit.