List Of Prepaid Credit Cards That Build Credit
A good credit score is very important while obtaining assistance for your financial need, so remember, Credit Cards that built Credit. The better the credit, the lower the interest charged. The logic is very simple.
Importance of a good credit
It is essential to establish a good credit when you are young. Learning to use your funds wisely and repaying your loans on time has a lot of merits. A good credit improves transition to adulthood easier.
Advantages of a good credit history
It is easier to apply for a loan when the credit history is good.
The terms and conditions are not too taxing.
The rate of interest is lower.
There are added benefits such as cash backs, rewards, and cash advances.
The loan lender believes that you are not a risk. This leads to a good relationship which plays a vital role.
There are better chances to obtain approval for credit cards. Being preapproved is almost very rare.
Your negotiation power is stronger with a good credit history.
Your credit history and your income have a tremendous impact on your borrowing capacity. You can get approved for high limits with a good credit history score.
Rental apartments and houses are also easily negotiable when you present a good score
It is not just lower interest rates on your loan, you can also obtain better car insurance rates.
How to build a positive credit history
Get a job. It is a big factor that helps you get approved for loans, credit cards and various other forms of credit accounts. You will need the income to repay.
Pay your entire balance. Paying the minimum will still mean you have to pay interest on the balance due. That can hurt your credit score.
If the balance cannot be avoided, make sure to pay it off as soon as possible.
Make the payments on time. Do not wait for the grace period.
If possible, ensure sufficient balance in your account and set up automated debit to your account so there is no possibility of missing the deadlines.
Eventually, apply for an unsecured credit card. The relationship with the bank will also help you obtain easy approval for other loans.
Increase the credit limit with the unsecured credit card. This also boosts the credit score.
A credit card is nothing but a loan that is given to you by the bank every time you swipe it. Since it is borrowed money, it will be reported to the major credit bureaus. Credit cards directly affect your score.
A debit card is directly linked to your bank account. If you do not have an adequate bank balance, the debit card is literally rendered useless.
A prepaid credit card, on the other hand, is similar to this debit card; except it is not linked to your bank account. Transfer the money to this account and use it as you deem fit. They are nothing but prepaid cards. It can be compared to facilities such as Paytm. You can only spend the money that is added to the card, and not more.
Different types of cards have a different impact on your financial history and most importantly, your credit history. Prepaid cards create awareness on your expenses and help you draw the limit yourself, they do not contribute to your credit score. There are alternatives
How to use prepaid credit cards
Apply for a secured credit card. It is just like a normal credit card, except that a security deposit is required for the same. This secured credit card will help you get the good score that you need to qualify for the regular ones. It is hard to get a normal card when you are just out of college and are unable to prove your credit history.
List of credit cards that will build you a good credit
Green Dot Platinum Visa Secured Credit Card
This credit card, that is neither prepaid nor debit, is designed to build your credit. It encourages responsible use of the funds in the process. This card does not require a good credit or a bank account. You can make many security deposits as well as payments with cash at shops and retail stores. Your first late payment will not call for a fine. You can also track your expenses with an online account that is available to you 24/7.
Discover it Secured Credit Card
There is no annual fee that is attached to this credit card. It also does not charge you a fee for the first late payment. The card also does not increase to your APR if payment is made late. The other advantages include 2% cash back at gas stations and certain restaurants. You can also earn up to one percent cash back on various other purchases.
This credit card line will be equal to your security deposit to the amount of $200 or more. Conditions apply. With responsible use, you can build or rectify your credit history. There are monthly reviews that take place from the first year. This is to check if you can qualify to get back your security deposit while continuing to enjoy the benefits of the card.
This is reported to three major credit bureaus. Be responsible and get a good credit history.
With a debitize, the credit card can be used like a debit card. All you have to do is connect the various bank accounts and credit card accounts to Debitize. The process is similar to how you use your regular credit card. Debitize is authorized to withdraw money from your account and pay the credit card balance as and when due. This is a fantastic way of keeping your expenses in check and prevent overspending.
They offer ten dollars to pay towards your credit card just for trying their free service. This is definitely worth a shot.
Your credit score and your financial history form your financial resume. It will help you land a job, buy a car, lease an apartment and even avoid deposits on utilities. Achieve a great credit score and get set for life.