Prepaid credit cards
Prepaid credit cards provide the benefit of a credit card with less of the hassles.
It has the added advantage of having a credit card and regulating your spending so the chances of oweing money on the card becomes minute especially if the prepaid credit card does not carry with it a monthly fee.
And since most of the prepaid credit cards available do the minimum of credit checks, it is virtually a 100% acceptance for anyone who applies.
That said certain companies do find prepaid credit cards a lucrative venture as they charge circa 20% interest for using the card.
To those who have standard credit cards this does seem like a very bad deal, where the applicant is given no credit and what they spend is what they put into the balance of the card, no to mention the monthly and other usage charges, but it does afterall provide the benefits of a credit card, and helps those who want to be prudent and avoid getting into debt by having the freedom and advantages of having a credit card, but a small modicum of the risks.
Some of these advantages include the voucher points for grocery shopping and airmiles, which can become easily addictive trying to get as many miles as possible, especially with George Clooney’s Oscar noinated movie Up in the Air, the possibilkities of getting your name on a plane if you achieve a million miles is an incentive enough.
However taken in general a prepaid credit card is just as good as a debit card or vice versa depending on your point of view
And ofcourse you can always get cashback from a retailer (albeit the interest rate can be a little high), and in an emergency this can prove especially useful.
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Filed under: credit cards for bad credit