Prepaid Cards « compare credit report – transunion experian equifax

September 4, 2010

How to Compare Prepaid Credit Cards

Filed under: Finance — Tags: Aim, Annual Percentage Rate, Automatic Teller Machines, Cards Credit, Credit Bureaus, Credit Histories, Credit History, Credit Rating, Prepaid Card, Prepaid Cards, Prepaid Credit Card, Prepaid Credit Cards, Regard, Reward Program, Transaction Fees — admin @ 6:27 pm

Eric Wasselman asked:

The main advantage of a prepaid credit card is the ability to help the owner control their spending, after all, you cannot spend what you do not have. With this kind of card the consumer can only spend what they have deposited to the card. In this regard, a prepaid credit card is in effect a prepaid debit card.

There are many different types of prepaid credit cards on the market vying for your business, but to get the best card for you, you need to compare the pros and cons about each card. One card may sound attractive with a reward program and cash back, but you may find that they do not report to credit bureaus. A card such as this would not be the best choice for someone trying to establish or re-establish his / her credit rating. So if building credit is the aim, select a prepaid card that reports to the credit bureaus.

Unlike other credit cards, prepaid credit cards do not generally have an APR (Annual Percentage Rate) factored in, but there may be a monthly service fee. When a monthly fee is attached to a prepaid credit card, a comparison of the various fees and what they cover must be used in any comparison between similar cards.

Compare also whether or not there are any transaction fees to use the cards, for example some cards attract a fee when used at ATMs (Automatic Teller Machines).

Are the cards re-loadable? Some prepaid credit cards allow the user to reload money into their card when the deposit has been used up. This gives users much better control over their spending as they tend to know how much they have available and can afford to spend.

These kinds of credit cards are good for those without credit or damaged credit histories, who are trying to get a credit history or repair their credit rating. As such, the ease with which these cards can be applied for is also an important yardstick to use when making comparisons.

Benjamin

Comments Off

July 12, 2010

Rebuild Your Credit With A Prepaid Credit Card

Filed under: Finance — Tags: Bad Credit Rating, Cash Cards, Credit Bureau, Credit Card Abuse, Credit Card Companies, Credit Help, Credit Reports, Credit Score, Employment, Free Phone Time, Late Fees, Prepaid Cards, Prepaid Credit Card, Prepaid Credit Cards, Rebuild Credit — admin @ 1:46 am

Joseph Kenny asked:

It can be pretty tough when your credit is bad and it is next to impossible to get credit when you need it. Most major credit card companies will not talk to you, and a lender – well, forget about it. There is a way, though, out of the tough situation with a prepaid credit card. Here is what you can do with a prepaid credit card to help rebuild your credit score.

Need A Bad Credit Rating

One of the best things about a prepaid credit card is that it was designed for people with bad credit. In fact, that is one of the qualifications. There will not be any check on your credit rating, or your employment. Anyone can get one of these credit cards, but you will need to deposit a cash amount equal to the credit limit you want. This lets you know that it operates on a debit basis – no actual credit is given.

Get A Card That Reports To A Credit Bureau

Not many prepaid credit cards actually report to a credit bureau. That is, however, the kind of card that you want to get. While others make having cash handy, it really will not help you (or anyone with bad credit) in the long run.

Watch The Fees

Prepaid credit cards often come with a number of fees. You should compare one card with another in order to get the fewest fees. In order to get a prepaid credit card that reports to a credit bureau, you will probably have to pay an annual fee – could be as high as $100.

Look For Benefits

Most prepaid cards do not come with any benefits, but some do. You can get points, like on a regular credit card, that are useable for a few benefits – like free phone time, and more.

No Credit Card Abuse

Another good thing about these credit cards is that you can never go over your limit, or have to pay any late fees or interest. (Hey, this is sounding better all the time). This means that if it reports to a credit bureau, that it would be impossible to get a lower score than what you may already have with this kind of card.

Easily Put Cash On Your Card

Most prepaid cards will allow you to easily put credit on it from just about anywhere. You can even put your paycheck onto it by Direct Deposit.

Use It Like A Credit Card

A number of these prepaid credit cards can be used in the same way as a credit card. You can set up automatic bill payments, purchase things online, or over the phone. If you want this feature, however, be sure that the ad says that you can do this.

Like any other credit card, you will want to compare features and fees in order to find the best prepaid credit card for your needs. While most of them are similar, the fees vary widely. Since no qualifications are needed, why not get the best?

Vanessa

Comments Off