Many prepaid credit cards market themselves to people with bad credit. They claim that they guarantee approval and that they are a great way to rebuild credit.
While it is true that there is no credit check or qualification for a prepaid debit card, most of these cards do not report to your credit. Because there is no monthly payment and no credit is being extended, there is really nothing for them to report. For this reason, prepaid credit cards are really not a good tool to use to build credit.
For those who do not have the ability to qualify for a credit card, they can help you do things like shop online, or rent a car.
You do need to do research prior to getting one though. Most all cards will have a start up fee and will typically require you to pay either a monthly maintenance fee or pay a fee every time you make a deposit. Researching up front will help you find the card with the lowest fees.
Vincent Polisi is the founder of the Wealth Consortium
Related posts:
- Where to Apply for Secured Credit Cards There are credit cards which require you to pay an...
- Secured Credit Cards with Low Interest Rates When using secured credit cards with low interest rates, you...
- Credit Repair Takes Time - But It Works When you’re faced with bad credit, and you’re trying to...
- Credit Card Debt Elimination Starting Point How does one go about the process of credit card...
- Portable Credit Card Machine - Usages Portable credit card machine is a new and advanced machine...
