You may have heard of these and asked, “why are they called credit cards if you receive no credit?” To answer that question and many others, let’s look at them in detail.
Nearly all of the major issuers offer these. The concept is very simple. Once you are approved, and nearly everybody regardless of their history is, you get a card in the mail. It looks identical to a regular one typically with a Visa or MasterCard logo. It can be used anywhere that Visa & MasterCard are accepted and nobody will know that it is prepaid.
The first thing you have to do is fund it. The amount of money you deposit in to your account is the amount of money available to you. You can’t carry a balance, you can’t pay interest or over the limit fees. To avoid any kind of fee, set up a direct deposit. Also bank transfers, ATM deposits, and even a mailed check can fund it.
Most valuable perks including free bill pay, free direct deposit, balance alerts sent to your e-mail or cell phone, and if you have damaged credit report, your positive payment activities will be reported to the bureaus.
These companies are making money off of each transaction that you make yet still, some companies try to charge annual or monthly fees. Make sure to do a lot of comparison shopping and find one that is 100% free to be issued and activated. Some may require that you set up direct deposit in order for it to be free.
As American’s become more conscious of how they borrow money, this card represents one of the safest ways to build positive marks on your report and without the worry of finding yourself in over your head in debt.
Additionally these are a good alternatives for individuals in chexsystem and don’t have a checking account. This is because to cash a check you have to pay a check cashing fee. To pay a bill you must buy a money order. These expenses add up quick. However a good card will let you use direct deposit for free and may have a program to allow you to pay your bills without having to buy money orders.
We suggest the prepaid Account Now Visa it comes with free direct deposit, free bill pay, free activation, free credit builder and guarantees approval – for a complete review visit us or for more information about the Best Prepaid Credit Cards.
My credit score is 574 what credit cards can I get?
If you happen to have a credit score under 600, such as a 574 credit score either because of recovering from a bankruptcy.
Or perhaps from a series of financial emergencies that led to several late payments, judgements or charge offs.
Now you want to know how to start rebuilding your credit with a credit card and want to know what kind of credit cards you can get.
A sub 600 credit score is considered a bad credit score according to credit.com
The kinds of credit cards you can get with this kind of credit include high APR credit cards, secured credit cards and prepaid credit cards or debit cards.
You can get bad credit credit cards from Orchard Bank, Credit One Bank and First Premier Bank.
These include unsecured and secured credit cards.
You will qualify for APRs as low as 7.90% APR for a secured credit card to as high as 36% APR for an unsecured credit card.
Plus you also may have to pay an annual fee from to billed monthly to your account.
Make sure to look for credit cards that report to all 3 credit reporting agencies.
There is no point in getting a credit card that does not report your good payment history.
You can also go with a prepaid credit card also known as a prepaid debit card if you cannot get approved for a bad credit credit card.
If you have a bad credit score of 550, 560, 570 or even 574 then you can still get a credit card with your bad credit but you will have to pay a high APR and annual fee.
Or you can get a prepaid debit card.
But those also have a number of fees.
Work on building up your credit score with a good payment history and you can be on your way to better credit card offers.
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