Apply Prepaid Credit Card

In today's world, a credit card is a required tool for making just about any purchase.
Credit cards are required for online purchases, reservations, and even face-to-face purchases. Even most gas stations now require credit cards for purchases. It is nearly impossible to survive without a major credit card. The problem is that poor credit can keep you from qualifying for a major credit card, and if you're one of the millions of people in this country with poor credit, this leaves you out of the economic picture. A simple solution is prepaid credit cards.

Apply Prepaid Credit Card: How it works

A prepaid credit card can be easily opened by anyone, regardless of their credit score. Simply deposit money into an account similar to a savings or checking account at a bank, and the prepaid credit card company will issue you a card with a pre-loaded amount available to spend. This card can be used anywhere that takes major credit cards. Money spent with the card comes from your account, and it is impossible to accrue a debt on this type of card. Once the pre-loaded amount of money is spent, the card ceases to work. There are no interest rates or late charges with a prepaid credit card, and it can be used just like a debit or credit card. Before using a prepaid card, however, there are certain fees that you will have to pay upfront. There are fees to set up the account. Most of these fees are small and can be as little as ten dollars.

Apply Prepaid Credit Card: Fees

There are additional fees every time you deposit more money into the account, and there may be additional service charges that can add up as you use the card more. Be sure to investigate all the charges that apply to a prepaid credit card before opening an account so you are not surprised with charges later on.

Apply Prepaid Credit Card: Due Dilligence

Additional areas to be wary of when using a prepaid credit card are for subscriptions where a payment is automatically applied to the card at a predictable time period. If you use a prepaid credit card for these types of payments, be sure to reload the card repeatedly so that there are sufficient funds to cover recurring payments. Additionally, investigate the companies you may want to set up accounts with before applying for a prepaid credit card, as some companies that charge recurring payments may refuse to accept such a payment type because of the risks involved.

Prepaid credit cards are an easy and simple way to use credit to make major purchases for those with poor credit scores. They are easy to obtain, and when managed properly, can even improve your credit rating in the long run.



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