Many people are rejected after filling out a credit card application because of poor credit. The problem with this is that a major credit card is needed to make reservations for hotels, motels, car rentals and airline flights. Credit cards are also necessary when placing orders online or over the phone. Does this mean a person with bad credit can’t do any of these things? Not if that person has a prepaid cash card.
A prepaid cash card account is opened simply by applying at a retail store or online. Then when you have it, you may deposit money into that account, much in the same way you would make a deposit to open a checking or savings account. After you have copleted your application, which usually is guarunteed approval, you’re issued a prepaid cash card that can be used anywhere one would use a regular credit card. The best part of the prepaid cash card is that you can charge to your heart’s content and you won’t be in debt. The money is yours and once it’s gone, you can’t spend any more until you make another deposit. There are no bills and no interest charges. It’s the same principle as using a check card linked to a savings or checking account.
So what’s the catch? First, Depending on the cash card you choose to apply to, you may have to pay a fee to set up your account. The amount varies, but you can probably expect to pay about US$0 to $10 to open a prepaid cash card account. In addition, you’ll have to pay additional fees every time you deposit more cash into your prepaid credit card account. For those with bad credit, the benefits of a prepaid cash card far outweigh the risks. They’re able to reserve rental cars or hotel rooms, and don’t have to worry about credit card bills and interest payments later.
Those who are planning to use the prepaid cash card to pay for a monthly Internet subscription, or to purchase an item where a fixed amount is deducted from their card each month, might be dismayed to learn that this might not be possible. Few businesses don’t want to do business with a prepaid cash card because there’s always the risk that there won’t be any money in the account when it comes time to pay the bill.
If you’re frustrated because a credit card is necessary to get by in today’s world, but can’t apply for one because of bad credit, you might consider a prepaid cash card. You’ll have most of the advantages of a credit card, and you won’t have to worry about interest charges. Sounds like a prepaid cash card is a pretty good deal.
Michael Arbach
(18 votes, average: 3.89 out of 5)
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