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.
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.