Rebuild Your Credit with a Prepaid Credit Card

By: David Hall

The following article presents the information about prepaid credit cards. If you have a particular interest in prepaid credit cards, then this informative article is required reading. I hope that reading this information will be enjoyable and educational for you.

Prepaid credit cards are sometimes referred to as guaranteed credit cards because of the ease of getting one. Prepaid credit cards are much easier to get than standard credit cards. The application process requires no credit check, employment verification or credit application. Prepaid credit card enables consumer's to load funds onto their cards backed by credit card companies.

The difference between debit cards and prepaid cards is that the debit cards are tied to personal checking accounts while the prepaid cards are tied to special accounts held with the credit card companies. Prepaid credit cards carry the Visa/MasterCard logos. They can be used wherever the traditional credit cards are acceptable such ATM's and making online purchases. The NSF (non-sufficient funds) charges are due to customer's withdrawing funds from ATM's or making purchases that exceeds the balance in their checking accounts. With prepaid cards this will never happen because the prepaid card holder's are not borrowing any money and can only spend the amount of money loaded to their prepaid accounts.

Prepaid credit cards are designed for individuals having difficulty getting approved for standard credit cards. Prepaid cards are also an effective means to re-established or rebuild credit history. These cards will help to keep card holders out of debt because the money spent belongs to them and not that of the card issuers. Money is immediately withdrawn from customer's account balance once the purchase is made, eliminating the possibility of running up credit card debts. Card holders tend to be more careful and have better money management using their own funds with prepaid cards than with standard credit cards having a line of credit. This is a great way for card holders to use plastic without digging themselves in debt.

Prepaid credit cards are an excellent means for parents to provide funds to children away from home. Prepaid credit cards are also excellent for individuals who do not have good spending habits. With a prepaid credit card students are able to acquire good money management and are only able to spend the amount of money loaded on the card. This is a good way to stay out of credit card debt and avoid NSF and the fees incur with a checking account. Students commonly used prepaid credit cards to do online shopping.

There are no interest charges with prepaid credit cards because you are using your own money. Customers will need to pay an application and a recharge fee whenever a reload of funds to your card is needed. If your objective is to repair your credit then you should make sure the prepaid card issuer reports cardholder transactions to the credit bureaus namely Experian, Equifax, and Trans Union. Customers should compare prepaid credit card offers and apply for the one that offers the best benefits.

Visit http://www.creditcardsessential.com/ for comprehensive search and comparison tools to help you find the best low- interest credit card deals to meet your needs. Don't wait another moment!This article is free to publish in its entirety and must include all links: http://www.creditcardsessential.com

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