Alternative Payment Methods
Of all other payment methods, credit cards can be regarded as the easiest one. When you have a credit card, you can purchase any goods or products you wish. You can make online transactions. You can pay for many different services. As long as you repay the debts on time, you do not have to pay too much for your credit cards. In other words, when you use a credit card wisely, it may not cost you a lot. On the other hand, if you are planning to shop with your credit cards very often, there can be a good reason for you to buy a card with the lowest interest rates. No matter how often you use your credit cards, you do not want to overpay for these cards.
When buying a new credit card, you should remember that the interest rates can depend on many different things. For example, they can depend on your credit history. If you have an excellent credit score, you will be offered with the lowest interest rates. If your credit score is very bad, it may be close to impossible for you to buy a new card. The fact is that the credit card providers, as well as many other creditors, prefer to reject applications from customers with bad credit. There are not so many banks and financial institutions that will be ready to offer credit to customers with very bad credit score. In some cases, the only way to purchase a new credit or debit card is to buy a secured or prepaid card.
The biggest difference between secured credit cards and all other types of the payment cards is that in the first case you need to create a bank account to secure your card. Without such account, it may be impossible for people with bad credit to buy a credit card. The amount of money on such account can vary from one financial institution to another, but in most cases, you will be asked to put at least $500 on your account. If you do not have enough money for that, you may want to shop for such type of the payment cards as a prepaid card.
Using PrePaid Credit Cards
Just deposit money into your card account. Your spending limit is based on the amount of money you put into your account. As you buy items/goods using your card, the amount spent is deducted from your total account balance. Obviously, once you spend all the money in your account, you will need to make a deposit to fund your account again.
Values of Prepaid Credit Cards
Cards are used anywhere the normal cards are accepted.
You will not incur any additional debt since you are using your pre-funded balance.
- Cards may be acquired even though one has bad credit
These cards are a great option for those who have damaged credit but still need to have access to a credit card.
Pre paid credit cards are used just like the normal credit cards. The difference is the money used is not borrowed by instead it is the money you deposit in the credit card account and any purchases are deducted from the balance.