Common Prepaid Credit Card Myths for Bad Credit People
A prepaid credit card might sound like a quick solution for people looking for credit cards for bad credit trying to do their shopping online or for anyone who likes to have a control on their spending. Truth about these cards are bad and few customers understand these factors. Do you know even prepaid credit cards come with tiny fine print which often gets updated frequently?
There are lot of reasons you should consider before choosing prepaid credit cards for managing your finance:
- Check to see if your prepaid credit card comes with Monthly Fee. Most companies charge anywhere from £5 to £10 referring them as ‘maintenance’ charge. This goes un-identified as first three months are often waived.
- See when the date is about to expire. These cards come with short expiration date and you will also need to pay some money to activate the card later.
- Check to see if your bank would allow you to withdraw money. Banking socient don’t let people withdraw all cash from prepaid credit cards.
- Find places that accept these cards. Prepaid credit cards companies advertise they are accepted everywhere whilst they aren’t. Prepaid cards can only be used only with select retailers and very few which at any Visa or MasterCard card accepted business. Such systems are called open loop and close loop.
You can also consider applying for poor credit credit cards and enjoy the little extra they add being a credit card. You get a minimum limit of £250 and upto £1000 to start with to help you fix your credit history but again it comes with expensive interest rates.
They also have a dedicated customer service to support you on how to improve credit rating.
Bad credit credit cards are often accepted everywhere as they are just like any other credit cards, statements can also be checked instantly. Most credit card applications for people with bad credit history are accepted and come with high interest rates, but you would slowly start to realize the benefits of fixing your bad credit which prepaid credit cards can’t promise.Be wise and make your right choice choosing the credit card you need.