If you have bad credit problems that have not been resolved, it can be impossible to get a credit card. If you want to buy things on the internet it always requires a credit card for immediate shipping, otherwise you have to send in a money order, certified or personal check and wait for it to clear your bank, if they will even accept this kind of payment. Even having a checking account is harder to get these days if your credit is not the best.
Many people are turning to a prepaid credit card in order to protect their cash from loss or theft and to have the convenience of paying with a card instead of cash or check. While these are very beneficial, they can also come with different fees. It makes you wonder if the benefit of having one is worth the expense just to have access to your own money.
It is your own money because it is money that you load onto the card using western union, automatic deposit, or loading methods they allow. There are prepaid cards that are better than others. Some prepaid cards will make reports to credit bureaus and this can be beneficial for anyone trying to rebuild their damaged credit or for someone who has no credit history. Some prepaid cards do not report to credit bureaus so this will not be a benefit to anyone trying to repair or establish credit for the first time.
The fees that prepaid credit cards charge can be different. They usually charge a monthly fee for the card and some can be reloaded and some can not be reloaded. If you use the prepaid card to get cash advances, of your own money by the way, they will probably charge you for that too. Prepaid credit cards are very good for paying some bills online and ordering things.
If you do have a checking account, you might check into getting a debit card instead. Debit cards are very similar to prepaid credit cards, but if you get a debit card through your bank you will still be able to help control spending and it could have cheaper fees attached to them. Some banks have certain requirements in order to get a debit card such as a minimum balance and the amount of time you have had an account. Which ever type of card you choose should depend on the one that offers the most advantages for you and charges you the least amount of money to use it.
