The simple truth is that you need access to a credit card immediately. Applying for a standard Visa or Mastercard through the bank is time consuming and anxiety written. Without knowing what is on your credit report, you just assume that your credit is mediocre or poor,
or perhaps, non-existent. If you fall into any of these scenarios then you are a perfect candidate to apply for a prepaid credit card online.
Before you do apply, there are some things that you need to do in order to avoid problems after you get the card. Choosing the right prepaid
card will save you money and headaches in the long run and at the same time possibly improve your credit history and rating. Here are 3 of the most important tips before filling out the application.
Check Your Credit
If you’ve been denied credit within the past 60 days, you should have received a letter from the lender who rejected your application that states the reason why you were denied credit. If you read it carefully, you will notice that you can get a free credit report from the credit bureaus. You need this to see where you stand in the eyes of a lender.
If you haven’t been denied credit, by law, you are allowed a free credit report from each of the credit bureaus annually. It makes smart financial sense to take advantage of this at the beginning of each year.
Research Is Key
There are a bucket load of prepaid cards available but a limited number should be avoided at all costs. Because that is what it will do – cost you money, far more than it’s worth. Here is what you need to look out for when searching through the listed websites that offer a prepaid card.
Excessive fees are to be avoided for sure. There is no need to pay anything for a prepaid card. In almost all cases, the lender is not using their own money, they’re using your money to fund the credit. When you open an account, your prepaid credit card limit is equal to the balance in your savings account located at the same bank. The lender often pays you less interest or in some cases, no interest and has use of your money while it’s sitting idle.
A few lenders do not use your money; they actually give you credit. But they often include fees that override any benefit you may receive. Among them are application fees, card initiation fee, and account maintenance fee, or an annual credit card fee etc. When you total these charges, which are often deducted from your initial credit line, you discover the problem. Before you get to use the card, the fees add up to more than your credit limit, which is very low to begin with, and your first bill is before you even get to use the card. If you don’t pay it, it gets turned over to a collection agency. Avoid these crooks at all cost.
Search For Rewards
If you are going to take full advantage of the offer made by the lenders of a prepaid credit card online, then look for those that have rewards attached. Some of the rewards include reward points, free gifts or discounts at preferred merchants. If you are going to spend the money anyway, why not get something extra for it.
Getting a prepaid card online is easy, and many people have used it successfully to rebuild their credit. Applying these simple tips in addition to the other tactics for securing the best card will save you a considerable amount of money.