Prepaid Cards For Bad Credit
What are credit building prepaid cards and how do they benefit?
What are credit building prepaid cards?
Credit building prepaid cards are those which provide a real opportunity for people to escape from the prison of their own bad credit history. These highly secured financial products help even those with the worst FICO scores to slowly and eventually develop a better history.
What users are looking for in such situations is a secured card that could offer regular consumer bureau reporting. It is this reporting which would further help them to restore their FICO score over time and enable them to create better credit history. Better credit history helps in granting loans for the future.
Typical prepaid cards have a defined spending limit that is directly tied to the amount of cash that the user pays to the financial provider. Whenever the prepaid card is used, the spending limit is deducted. In various cases, the card provider company may offer consumers an unsecured financial product after 12 to 15 months of regular payments.
How can you maximise the benefits?
To get the most out of any credit building prepaid card, it is important for you to adopt some sensible strategies.
The most essential strategy is to find a credit building prepaid card that requires low maintenance fees. The reasons for this will be obvious to most you, as no one wants to pay someone else to spend their own money! But some people still miss the small print, so make sure you see a summary or table of fees before committing to certain card.
In addition, you should be responsible while you use your credit building prepaid card. Despite the fact that you are spending your own money, you should still make payments on the card to offset your spending. The best advice is to plan your spending before making any purchases.