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?

Mathew

Joseph Kenny asked:




When it comes to having bad credit ratings, or at least less than good credit ratings, it sure can make things a little tough financially to be able to do what you want. Many people today start getting into bad credit partly because of credit cards simply by taking full advantage of the “charge it” possibilities that a credit card gives you. A credit card – at least a certain kind, can actually help you to repair your credit – here’s how.

While a credit card can actually help you to improve your credit ratings, you probably already know that you will not be able to get the best rates or features on a new credit card. The terms will generally be restrictive and your rates higher. It also means that any credit limits you get will be low – at least to start with, since the credit card company will consider you to be a higher risk than someone with good credit.

The first thing you need to do is to make sure that the credit card company you are applying to says that it reports to a major credit bureau. It may report to all three of the major ones (look for it) which are Experian, Equifax, and TransUnion. If it does not report to at least one of these, look for another card. It cannot help you to repair your credit even if you do make every payment on time.

The next thing is the interest rate – you will want to get one that has a very low rate of interest – the lower the better. This interest rate is what you will be paying each month on whatever balance you leave on the credit card. Ideally, you will want to pay off the full amount each month. This will allow you to build your credit rating faster.

Check out the various fees that apply. You may actually be surprised to find out just how many there are – a fee for just about everything. The idea they want to convey is that while they are willing to take a risk by issuing you a credit card, you will pay for the pleasure of it. The good news, though, is that by handling your finances well with the new card, you will get offers for better cards with time. Because there are so many fees, you do not just want to accept any card – compare them to discover which one has the least amount of fees. The truth is that when your fees are applied at the start, that there will be little room left to charge much of anything else.

Most credit cards that are issued for those with bad credit do not include the usual introductory offers that a regular card may have. There will not be any rebates or rewards, either. A couple of these cards may offer balance transfers.

For your own information, be sure to see if there is a time period stated in the application, that tells you how often the credit card company will review your account. This is important because your opportunity to get a better card can only be offered at that time. At those reviews, the issuing company may elect to raise your credit limit, lessen your fees, or some other such option. Even though you will pay more at the start, getting your credit card for people with bad credit is good because soon your credit rating can be improved and offers will come that you will enjoy more.

Billy

Jen. E asked:


credit cards that are specially for people with bad credit? What about the prepaid ones? Most of the cards I’ve seen so far only report to ONE credit bureau. Is that okay? Or should I find one that reports to all three? Or should I wait till my credit is good enough for a real credit card so I can help rebuild my credit? I really hate credit cards, but I am responsible enough. I just need some advice on this. I want to get all the info I can abot rebuilding my credit. Funny thing some other person responded to my other question by saying i shouldnt worry about my credit. Ok CRAZY. If you ever want to get a house, or a new car, or if money gets tight and you need a loan, or a business loan, what do you think they check? Credit DUHHH. LOL

Brett