If you have poor credit, you may find it difficult to qualify for a new credit card. Don’t be depressed if this is your case. There are prepaid credit cards that do not require credit check and which you can easily get.
Before you get a prepaid card, there is a misnomer that needs clarification. In actuality, a prepaid credit card is not a real credit card. Rather, it is a special type of debit card where you can withdraw an amount from your bank account. To apply for a prepaid card, you may be required to link it to your bank account. If you are searching for a way to practice how to spend responsibly, this type of card is ideal. This is because you will never incur debt since you are just getting money that you have deposited into your account.
Making Your Life Easier
Not all people are eager to make transactions with banks. If you are one of them, a prepaid credit card can be a big help for you. There are companies that do not require their customers to have a bank account, which will be connected to the card. Using this, you can perform a lot of things, such as rent an apartment or car or book a hotel room.
Aside from that, there are also cards that have routing and account numbers. You can take advantage of them by having your paycheck deposited onto the card directly. This is more preferred by many Americans than dealing with check payments. Thus, this is an even better solution compared to sticking with a traditional bank account.
For People with Poor to No Credit
It is a challenge to find a bank or a creditor that will instantly approve your credit card application if you don’t have credit history. Consequently, most banks will decline your application if you have low credit score. Whether you have bad credit rating or your credit history is paper thin, a prepaid card is a great solution. Credit checks are generally not a necessity. This is why this type of card is recommended for teens or for first time cardholders. Remember that a prepaid card cannot help you enhance your credit score. Your expenses against the card will not be followed by the credit bureaus. However, this is an ideal step to take if you don’t want to harm your credit.
Although a prepaid card does not work like conventional credit cards, it does have some fees. The amount and the charges that will be applied on the card will depend on the creditor. However, it is common to pay for application and replacement fees, transaction, and inactivity payments.
Prepaid credit cards help you become a responsible spender. This is a smart budgeting tool for users who wish to make the most out of their plastics. Though you cannot go over the amount you have on your account, there are no worries about getting into debt.
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