Many people with bad credit are discovering the advantages of using prepaid credit cards instead of using traditional credit cards. What consumers like most about using prepaid cards is that they do not need a good credit rating to get approved for one. Although consumers must fund prepaid credit cards, they are an excellent choice for consumers who cannot get approved for a traditional credit card.
Prepaid Cards Are Helping Consumers Take Control of Their Finances and Credit Rating
Since consumers must fund prepaid cards, people who use prepaid credit cards are not burdened with having to make monthly payments like consumers with credit cards. This is because all purchases are immediately deducted from available balances. As such, consumers do not have to worry about derogatory credit reports to the credit bureaus.
Prepaid Credit Cards Can be Used to Pay Bills and Purchase Items Online and in Stores
Prepaid cards are also advantageous for consumers with bad credit because consumers can use them anywhere credit cards are accepted. For consumers without a credit card or a bank issued debit card, a prepaid credit card gives them the freedom to make purchases online and in stores.
In addition to the freedom to make purchases, there are no limitations as to how much a consumer can spend each day with prepaid cards. Once a prepaid card has been funded, the consumer can make small and big-ticket purchases. This is just one of many advantages of having a prepaid card, but that is not all. Prepaid credit cards can also be used to pay for bills and expenses. With a prepaid card, consumers have the flexibility they need to pay their bills when they want. For consumers who do not like to carry cash, prepaid cards offer the perfect solution.
Prepaid Credit Cards Are Perfect For People With Little to No Credit
In addition to helping people pay for bills and make purchases, prepaid credit cards are also an excellent choice for people with no credit. Students who do not work or do not have credit history often have trouble qualifying for a traditional credit card. With a prepaid credit card, students have the ability to make purchases when they want even though they do not have the credit. In addition, with prepaid credit cards both students and parents can easily add money to their cards anytime they want.
Consumers With Prepaid Cards Can Earn Money and Referral Fees
Depending on the prepaid credit card, consumers are often able to earn rewards each time they use their card. In addition, some prepaid credit cards also offer referral fees. For consumers in need of additional money, a prepaid credit card may be a great way for consumers to earn extra money.
Whether a consumer has bad credit or little to no credit, prepaid cards give consumers the flexibility and power they need to take control of their lives in more than one way than one. From no caps on spending limits to being able to pay for high-priced items, prepaid credit cards are advantageous to people with bad credit in many ways. Regardless of whether consumers ultimately choose the Green Dot Card or a different card, they should always compare cards before making a final decision.
This piece was contributed by Raymond Pinkerton, a freelancer based in the greater metropolitan area of St. Louis, Missouri; he regularly writes on finance, politics and other prominent issues in society.
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