What's the Deal with Pre-paid Credit Cards?

Have you ever applied for a credit card and been rejected? This isn’t terribly uncommon. Many consumers experience rejection from credit agencies. Unfortunately for those consumers, acquiring a credit card is vital for transactions such as reserving a hotel room or renting a car. The best solution for these consumers with bad credit is to look into obtaining a pre-paid credit card. Pre-paid credit cards are credit cards where consumers apply a selected amount of money towards the card. The card may be used exactly like a normal credit card except the consumer will not be authorized to spend more than the amount they applied towards their card.

Who uses pre-paid credit cards?

Those who have poor credit score and teens benefit the most from pre-paid credit cards. They’re great for consumers who have bad credit because they prevent consumers from continuing to fall into debt. They also get reported to credit agencies so holders may begin improving their score.

Most teens do not have a credit card, but some parents like knowing their teen has emergency funds. Pre-paid credit cards allow parents to provide their teens with financial security when they are not around and teach them financial responsibility.

How do they benefit from pre-paid credit cards?

Using a pre-paid credit card allows consumers to set their own spending limit, so they can have more control over their finances. Setting a limit enables consumers to avoid falling into debt and damaging their credit score. Pre-paid credit cards also offer consumers better security. There is no need for you to carry around a ton of cash with a credit card, and if lost or stolen, the card may be canceled over the phone. Some pre-paid credit card companies even offer fraud services, like regular credit cards, that will cover any fraudulent charges if the card was stolen. One of the best benefits of pre-paid credit card is no late fees, and they are zero interest credit cards! Browse the Customer Credit Cards website to find the best deals on pre-paid credit cards