If your credit is poor or severely damaged then you are fully aware of how difficult it can be to
obtain a credit card, even one that is secured. You also know that in this day and age it is a necessity
to have one. Do not worry. There is a solution to this problem.
Prepaid credit cards can give you the spending freedom that you need without being bound by any type
of contract. They are easy to set up and use. All you need to do is open and deposit money into an
account with a company that offers them. You control what the limit is because you are the one supplying
the funds.The amount you deposit is the amount you have available. You do not have to worry about
receiving a monthly bill because you do not owe any money. You will not be charged interest or finance
fees because you are not borrowing any money. There is no chance of you ever being late with a payment or
going over the limit. Once the balance on your card reaches zero you will no longer be able to use it
until you deposit more money into your account, which you do at your own convenience.
It is important to note that these cards also have several limitations. Technically, they are the same
as debit cards with the exception that they are not tied to your personal checking or savings account.
Your payment history is not monitored so your credit rating will never be affected by them. Also, many
companies will charge you a fee to open or deposit money into a prepaid account with them. This fee is
usually around $5 or $10. It would be cheaper to open a no cost checking or savings account that
automatically comes with a free debit card. Finally, you may find that you are not able to use a prepaid
credit card for reoccurring charges, such as a phone bill, Internet subscription, or cable bill. Many
companies refuse to accept them for these types of transactions because there is always the chance that
the money won't be there when it is time to withdraw it.
A Prepaid credit card works exactly like a normal credit card without all of the hassle. You have
total control over every aspect of it, including the limit and availability of funds. While it will not
eliminate the damage that is already done to your personal record, it will give you the freedom to
purchase those items that you might not be able to buy with cash.
