The Benefits of a Prepaid Card
For people with bad credit or no credit, the idea of obtaining an unsecured credit card may seem farfetched. Fortunately, you have options. For example, a prepaid credit card may be just what you’re looking for.
As the name implies, a prepaid credit card is one that’s secured with a prepayment. Since you’re offering a prepayment to the issuer, there’s no risk on their end. They have the legal right to keep your prepayment should you default on your account.
Even if you don’t consider a prepaid credit card ideal, it doesn’t mean you should turn a blind eye. It could be just what you need to improve your finances and eventually reach your goal of obtaining an unsecured credit card.
Check out these benefits:
Hundreds of options to choose from: Many banks and credit unions offer prepaid credit cards, so you shouldn’t have any problem finding one that suits your situation.
Their much easier to obtain than an unsecured credit card: If you have bad credit or no credit, you may be wasting your time by searching for and applying for an unsecured credit card. But when you turn your attention to a prepaid credit card, you’ll find that it’s easier to receive an approval.
Build your credit score: In addition to the convenience of having a credit card at your disposal, a prepaid credit card allows you to build your credit score. Just make sure the issuer reports all account activity to the three major credit bureaus.
