Reloadable Prepaid Credit Cards the Right Option for Re-establishing Your Credit History
You finally ridded yourself of all your credit card debts and canceled your credit cards for good. Great! However, you overlooked one important thing — you’ll need a credit card again at some point in your life. You’ll either need to make a purchase online, pay a bill over the phone, have alternate means to a bank account for options such as employer direct deposit, or you’ll just rather use a plastic card opposed to cash because it is a more protective way to carry money.
It’s always a good feeling when you clear your debt, either through the preferred method of paying off your debts or the negative method of bankruptcy. However you do so, it always feels good to get rid of that burden and start fresh. Many in these situations find themselves seeking credit cards shortly after they have cleared their debt — mostly in fear that without having at least one active credit card they are negatively impacting their credit by showing no credit history.
Being that you just cleared your debt, you are most likely being more cautious and not trying to find a card which has high fees associated with it. Additionally, if you filed bankruptcy then you do not have many options available to you and it is more important that you get a credit card which will not put you back in debt, but will allow you to rebuild your credit in a positive and efficient way. The best option for those who have recently cleared their debt is to apply for reloadable prepaid credit cards.
You are probably asking, what are reloadable prepaid credit cards? These types of credit cards are considered secured credit cards because you load the credit card with your own money. Loading the credit card with your own money will make the loan amount secured because you are not actually paying any of the money back. Instead you are using your own money. In turn this will ultimately make the debt on the credit card secured and there will be no fees, such as late fees, overdraft fees, or interest fees associated with the use of the credit card.
Reloadable prepaid credit cards can put you back into the financial race without putting you in debt. Many prepaid credit card offers provide credit builder services, this typically mean that your use of the credit card will be reported to the 3 major credit bureaus. Since you will only be allowed to spend the balance you loaded onto the card and be required to only pay a low monthly maintenance charge for the card (usually less than $10), then it is highly likely your usage of the card will be positively reported to the credit bureaus and will positively impact your credit history and scoring.
Applying for reloadable prepaid credit cards is the best option for those who have cleared their debt and need a credit card for credit rebuilding purposes. If you have bad credit, currently got out of debt, recently filed bankruptcy, or need a traditional credit card alternative then reloadable prepaid credit cards are just for you. In most cases, prepaid credit card offers are guaranteed approval. As more and more people come to the realization that living beyond their means is recipe for financial disaster they will seek alternative options for carrying plastic while remaining debt free, prepaid credit cards is a way to do just that. It’s time you apply for your reloadable prepaid credit card!
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Prepaid credit cards are convenient, but at what price?
Help answer the question about prepaid credit card
Can a prepaid credit card be used to buy Runescape membership?Can a prepaid credit card, like the ones you could buy at Sam's Club, or Target, to buy Runescape membership month by month like a normal credit card?
I realize that the membership would cancel once there isn't enough money left on the card. if it worked, that is.
October 18th, 2009 at 11:43 am
Yes there is a way for you get a prepaid credit card with your name on it. Its take 7-10 days and its is a credit card.
It cost like 10.00 please see walmart dealer or https://www.walmartmoneycard.com/walmart/homepage.aspx
I hope it works.
If you have a bank card visa that will work also.
October 18th, 2009 at 11:47 am
A debit card should work–I've been using my MasterCard branded debit card online for years. However, there are occasionally sites that say they don't take debit cards.
In that case, you could try getting a secured credit card. You make a deposit to the bank which becomes the limit of the card (you can't touch that money, so make sure you can afford it). So if you put $500 on a secured card, you would have a credit card with a $500 limit. After a year or less, the secured card will become unsecured and you get your deposit back and it becomes a regular credit card. It reports as a regular card to the credit bureaus too, so no one would know it's a secured card but you. Bank of America has one that is supposed to be very good.
You could also try shopping through sites that use Paypal–you can have Paypal draw directly from your checking account.
October 18th, 2009 at 12:39 pm
If your parents set it up for you, yes.
October 18th, 2009 at 9:14 pm
Prepaid cards won't, but secured cards very often report to the credit bureaus, and they WILL improve your credit.
October 19th, 2009 at 6:07 am
yes, in some ways it's better.
You have already paid the money ahead of time and now you can use it, up to the limit of your payment minus the fees charged for managing your acct. With a prepaid credit card you cannot go over the limit. so you realistically have no debt with the company because it is prepaid.
October 19th, 2009 at 4:39 pm
sometimes those prepaid debt cards cost
you anywhere from 5 to 20.00 and thats just to get
the card, then there might be charges for non-use or even if you
use a monthly charge.. and do you want to use a ATM more fees
.
read the fine print
I would sugggest you can open a checking account usually for
a low balance or even free of monthty charges and most
of those checking accounts include debit card which works
just like a credit card..
October 20th, 2009 at 2:04 am
I don't think so..
October 20th, 2009 at 2:32 pm
As long as it is a valid Visa or Master card etc. yes
October 21st, 2009 at 2:27 pm
If you want a reloadable prepay card you will need to get a Green Dot Card.
Most of the others are prepaid Visa cards with a set limit and they can't be reloaded. You buy a $100 Visa Gift Card and use it up but can't reload it because it is not a real account. (Does not have your name on it).
October 21st, 2009 at 9:49 pm
sign up for a paypal account and use the card on that, paypal doesnt care if its prepaid, and choose paypal at ebay checkout