Prepaid Credit Cards
Many people are rejected after filling out a prepaid credit card application because of poor credit. The problem with this is that a prepaid credit card is needed to make reservations for hotels, motels, car rentals and airline flights. Prepaid credit card are also necessary when placing orders online or over the phone. Does this mean a person with bad credit can't do any of these things? Not if that person has a prepaid credit card.
A prepaid credit card account is opened by depositing money into that account, much in the same way you would make a deposit to open a checking or savings account. Once you have money in your account, you're issued a prepaid credit card that can be used anywhere one would use a regular credit card.
The best part of the prepaid credit card is that you can charge to your heart's content and you won't be in debt. The money is yours and once it's gone, you can't spend any more until you make another deposit. With a prepaid credit card there are no bills and no interest charges.
So what's the catch? First, to get a prepaid credit card you'll have to pay a fee to set up your account. The amount varies, but you can probably expect to pay about US$5 to $10 to open a prepaid credit card account. In addition, you'll have to pay additional fees every time you deposit more cash into your prepaid credit card account. For those with bad credit, the benefits of a prepaid credit card far outweigh the risks.
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