What is a Prepaid Credit Card?

Use prepaid credit cards if you've been rejected before or have poor credit

Every day, thousands of people are rejected by credit card companies because of less than perfect credit or no credit at all. In today’s society, it can be tough to get by without a credit card. You need one in business, to rent a hotel room on vacation or to buy an airline ticket to go on vacation. You cannot shop online or use online auctions if you do not have your own credit card. For millions of people, it can be an obstacle to living normal life.

Being rejected by a credit card company because you have no credit is not the same as having bad credit. If you do not have credit, establishing credit is relatively easy, however it may take some time to do it.

In the past decade, credit cards have become increasingly popular; they are used for everything from department store purchases to restaurants. For those who can't get a credit card, you may feel lost. Today however, those who cannot get a credit card can get a prepaid credit card. Prepaid credit cards can be purchased in almost every retail outlet in the United States from grocery stores to pharmacies nationwide.

What is a Prepaid Credit Card?

A prepaid credit card is just as it sounds. A credit card that you put a certain amount of money on and that is your credit limit.
When you purchase your prepaid credit card, you will have to call the card company and set up an account with them. They do not check your credit and they do not have a minimum amount to deposit.

Once the account is set up, you need to deposit funds. You can do this at any retail outlet that sells the type of card that you purchased. Once you have made the deposit, your card will be activated and you will be able to use it anywhere that credit cards are accepted. You will be able to shop anywhere in the world.

Advantages

One of the best things about prepaid credit cards is that you will never over spend or fall into debt because once you have spent the amount that is in your account, your card will be denied until you make another deposit. Another very big advantage to using a prepaid credit card is that you will never have to pay interest charges again. You will also be able to keep track of your purchases and view your bill, both current and past bills online.

Disadvantages

There are minor disadvantages to purchasing a prepaid credit card. The first being that you have to purchase the credit cad and pay a set up fee to open the account this is usually five to ten dollars, and you will also incur a monthly maintenance charge. A prepaid credit card does not report to credit reporting agencies so you cannot establish credit using these cards.

Although it is very easy to place funds on your prepaid card, you will still incur a fee for doing so. Each card company charge around five dollars every time you add funds. A prepaid credit card can be either Visa or MasterCard and it can be a great help to millions of people with poor credit.

With a prepaid credit card, the world is your shopping mall and you can visit as many shops as you like without going into debt!

Can't Make the Minimum Payment on Your Credit Card?
Learn what to do when you just can't make the minimum payment

Rewards Credit Cards - Tips on finding the Best One
Rewards credit cards are popular right now. If you can control your spending, they can provide some good perks. Which one is right for you?

How To Negotiate a Lower Interest Rate on Your Credit Card
Credit card companies make billions of dollars a year in interest payments, so they want to keep you a happy customer

How Many Credit Cards is Too Many?
See how your Debt to Income Ratio may be the key in determining if you have too many credit cards

Credit Cards to Avoid
Get a peek at some sure signs of credit cards to stay away from

How to Properly close a Credit Card Account - and Reasons Not To!
Canceling a credit card the wrong way can hurt your credit history and damage your score

Tips on How to get a Credit Card with Little or No Credit History
Tips on how you can establish positive credit and get a credit card with little or no credit history

Credit Card Types - Get the Scoop
There are many credit card types to select from - Eliminate the confusion and decide which is best for you

Learn about the all important APR on your credit card
This outline of credit card APR ’s will answer your questions about the APR features of credit cards

All about Secured Credit Cards
How can a secured card help you? Get the facts here.

How to Choose a Credit Card
Learning the features will help you pick the right one for your needs

Credit Card Features - What to know to get the best deal
Understanding all the features of a card will help you figure out which one is the best deal

Credit Card Basics - An Introduction to Credit Cards
Background info and tips on getting the most out of your credit card

What is a Prepaid Credit Card?
Use a prepaid credit card if you've been rejected before or have poor credit

Why do Credit Cards have an Expiration Date
Learn why a credit card expiration date is important and how it affects you

Has your Credit Card Application been Rejected?
Learn what to do and how to get credit despite your credit problems and learn to rebuild your credit rating

What Credit Card Numbers Mean
Ever wondered what your credit card numbers mean? Each number contains a lot of information

Lost or Stolen Credit Card? - Here's what to do
Act quickly and use these tips if your credit card was lost or stolen to prevent loss and identity theft

The Credit Card Application Process
Tips to help smooth the application process and avoid a rejection

Pay attention to the Fine Print
Your credit card agreement has a lot of important information - read the fine print thoroughly so you know what you're getting into.

Good Credit Rules!
Having good credit is one of the most important building blocks to financial independence. Learn how getting good credit can help your life.

Follow these tips to maintain a great credit score
Here are a bunch of tips and suggestions that will put your score at the top and keep it there.

Learn valuable information about credit reports
Find out about what could be on you credit report, types of credit reports and how to get them for free every year!

Get your free Annual Credit Report
Read my review of www.annualcreditreport.com and learn how to get your reports free.