The best credit cards to get for a person with a bad credit standing are prepaid credit cards. Why? Simply because this type of plastic does not allow anyone to further damage their reputation. This is because this card is pre loaded with your own money. By using it you are actually using your stored money and if it runs out you can’t use the card which in turn is a good thing because you are only spending what you can afford. Most of these cards let you build a credit history without extra charge for it. All you have to do in return is to use their brand of prepaid card.
Prepaid cards are easy to acquire, application is easy and almost every one can get one. It is highly recommended for first time credit card holders, teenagers, and people with bad or no credit, or for people who would want to create a good credit history buy VCC with crypto. Using it not only ensures that you are spending properly but it also allows you to build up your credit and reputation among the card companies.
Having a bad credit means that you are not able to pay interest rate thus you are having problems getting a bigger credit rate from a card issuer. By using a prepaid credit card you are able to build up your credit and be able to get a higher credit limit. Since you may only spend money that you have pre-loaded, getting into debt with your card provider is not going to be a problem.
When considering what brand to choose, you should go for a brand supported by MasterCard or Visa. MasterCard or Visa are accredited internationally and can be used at virtually anywhere from internet shopping to buying expensive cars at your local dealer. These internationally accredited cards may also be used for on-phone purchases. Because Visa and MasterCard is recognized internationally, you may use it when travelling out of town and also when travelling outside the country.
Although you may use your prepaid credit card almost the same way that you use your regular plastic, you must remember that you may only spend money that is equivalent to the money that you have pre loaded. If you think that the remaining money in your card might not be sufficient, reload it first before making another transaction.
Although some stores could give you information about your remaining balance upon request, some stores does not have the technology to be able to inform you about your remaining balance.
Even if you previously have bad credit history, you may slowly build it up using this type of card. Once you have achieved a good credit standing, the possibility to apply for regular plastic with a reasonable limit of your liking will now be higher. Once you have done that, just remember the habits that you got when you were still using your prepaid credit card. Only spend for what you can pay for and try to pay for your bills on time.
A charge card is slightly different from what people know of today as a credit card. This type of card doesn’t have a revolving credit line, like a traditional credit card. It’s simply a short term loan which can be tapped by using the card. That means you have to pay off your balance at the end of the month in full. Unlike a credit card, which allows you to pay of your balance over time, charging you interest. These cards have been around a long time, and the most common seller is American Express. They offer several different varieties. These things originated in the 60s or 70s with the old Diner’s Club. Remember that? Telly Savalis? Who loves you, baby? Okay, maybe you don’t remember. But just know that these things have been around a while and many people swear by them.
People who need a line of credit but don’t need that credit to extend beyond a month are most likely to use charge cards. It’s true that there are a whole sector of people out there who pay their balances off each month. They understand that paying high interest month after month will eventually break their budget. Some people don’t want the burden of dealing with high interest debt. Yet, those same people like the protection and credit history building aspects that charge cards offer. Plus, they have reward systems just like credit cards. So you can get reward points for your monthly spending.
These cards are not without their disadvantages. First, they don’t improve your credit utilization ratio: amount of credit available vs amount of credit used. Since you do not have an available balance, you don’t get the improvement to your credit utilization. This affects your overall credit score. But not your history. Secondly, if you do not pay off your balance at the end of the month, you will get severe penalties and interest charges. And you will quickly get your credit line shut down until you pay it off. For people who need more flexibility in when they pay, this type of card is a bad idea.