Improving Your Credit Rating With A Prepaid Credit Card
Prepaid credit cards are fast becoming a popular form of finance for many people within the United Kingdom and with this current economic climate these cards are proving to be a must have for people of all ages, including teenagers who aren’t old enough to apply for a credit card.
So What Are The Benefits Of Having A Prepaid Card?
* Credit Checks – Most companies will offer a 100% acceptance rate as you aren’t borrowing money from credit lenders so there is no need for a credit check.
* Bad Credit – Ideal for people who have bad credit as you can get approved without undergoing a credit check and some types of prepaid cards actually have an add-on facility where you can rebuild your credit history.
* Features – You can use a prepaid credit card pretty much as you would a normal credit card. You can use them over the counter at high street stores, on the Internet and you can withdraw from ATM machines.
* Rebuilding Credit – Some prepaid cards offer you the chance to improve your credit rating by signing up to a credit builder add-on. These usually run for the course of 12 months and you repay a loan of between £200 – £60 (£2.99 – £4.95 per month) which is an inexpensive and great way to help you on your way.
* Topping Up – The money you use on a prepaid credit card is your own money, you don’t borrow from lenders and that’s what makes this card perfect for a range of people. Due to you topping up with your own money it cuts the risk of getting into debt and it helps you manage your finances as you can only top-up what you can afford to. Therefore there is no need for credit checks and acceptance rates are much higher when you apply for a card.
