According to the experts in the lending industry there are at least over 50 millions Americans who are not able to apply for credits. Those who cannot apply for credit are mostly young people or from the minority groups and unbanked. These group often wonder that how they can build credit record if they no one give them credit ?
Pre Paid Credit Cards is the solution for this problem offered by the credit card companies which is designed for the specific target consumers. Pre Paid credit card are meant for those who can not fulfill the criteria for regular credit card or lost their qualifications due to some reason.
What are the advantages of the PrePaid Credit Cards ?
Prepaid credit card help you to rebuild your credit slowly if you do not have enough credit history. This may not happen quickly but it is something to work on over time. The good thing about it is that the moment you become a worth credit risk in the eyes of banks they will extend your normal credit.
PrePaid Credit cards are used like any other credit card to purchase air tickets or to book hotel rooms or to purchase anything online.
What are the disadvantages of the PrePaid credit card ?
There are also some drawbacks for the PrePaid Credit Cards. One of the main drawback is that you have to keep the track of your balance whenever you go for shopping anywhere because all the merchant where you use the card may not help you to determine it. But if you follow some procedure then you can keep the track of your balance.
Another disadvantage is that some may find it difficult to reload your PrePaid Credit Card. In case you are using cash you have to visit the outlet from where you have bought your prepaid credit card. I personally prefer reloading online.
Apart from the some negative points of the prepaid credit cards the main advantage is its give you the chance to rebuild your credit.
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