Features of prepaid cards for bad credit history

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Features of prepaid cards for bad credit history

Features of prepaid cards for bad credit history


Updated: December 26, 2012

Add to Favorites:
Those who have a bad credit history should try and rebuild their credit scores as it is the only way they can climb up the ladder once again and prove their creditworthiness. However, this could be a tough ask especially because very few lenders would approve credit cards for no credit history or for bad credit history. A very good option in such a scenario would be to go for a prepaid visa card that can be obtained from supermarket chains or retail chains. Here are some of the features and benefits of a prepaid card. Reputed retail chains waive off fee Some reputed retail chains offer prepaid cards without minimum balance requirement and issuance fees. Moreover, in some cases, there isn’t any credit check or bank account required either. This will help card holders who are starting from scratch to build a credit history and improve their credit score from the lowest point of 300. The activation can be done online without any fee. Moreover, some prepaid cards even allow free cash withdrawal from across hundreds of ATMs thus waiving off the cash advance fee. Moreover, prepaid cards have also been issued without penalty fees, overdraft fees or even transaction fees on US purchases. Therefore individuals with low or no credit history should look for prepaid cards with minimum fee requirements with the waivers mentioned above. Using the prepaid card A prepaid visa card could be used in the same way as any normal credit card. You can swipe the card at hotels, restaurants, shopping malls and departmental stores for your purchases thus getting rid of cash transactions for your convenience. Moreover, these prepaid cards will also help you make online purchases and avail discounts available online through deals offered from time to time. Thus you get the benefit of a credit card, without having to worry about being late on bill payments or exceeding the credit limits. You will also get features like free check writing and online bill payment services which will make utility bill payments extremely easy for you. Incentives Prepaid cards also come with incentives that will let you make valuable savings especially when you are looking to rebuild your credit history. Some prepaid cards will waive off the monthly fees for all those months when you have made more than 30 purchases with the card. Similarly, you will get cash bonuses ranging between $25 and $50 from time to time when you make direct deposits in your prepaid card account. There are other incentives like free direct deposit, 1% cash back on gas purchases and sometimes even added $10 bonuses for direct deposits under certain terms and conditions. All these incentives could help you in making savings while you improve your credit score.  Some prepaid cards even forward a part of your purchase to charitable organizations. Card holders of prepaid cards will receive a free savings account in some cases with APY of around 5% which is an added incentive. The card funds are FDIC insured in most cases too.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading
How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

Posted: June 20, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading