Mastercard And Visa For Poor Credit

Monday, April 19th, 2010 at 12:32 pm

Mastercard And Visa For Poor Credit

What is the Difference Between a Prepaid Credit Card and a Normal Credit Card

A prepaid card looks like A Credit or debit card. It can be used in the same way as a credit card in shops, restaurants or online, around the world. The main difference is that there is no risk of getting into debt because you can only spend the amount of money that is pre-loaded on the card.

Many people are rejected by Credit Card Companies because they have poor credit. You will not have that difficulty with a Prepaid Credit Card.

The problem with today’s society is that a credit card is needed to book hotels, airline flights or shopping online. This means that people with Bad Credit can't do any of these things because they don’t qualify for a credit card. It is for this reason prepaid cards are becoming very popular.

In particular, a Prepaid Credit Card is a pay as you go credit card. These can be created by a stand-alone company, not one of the traditional banks. Using one can mean that you're not using a bank at all! They won’t be concerned about your Credit Rating.

It basically works like a normal credit card (or debit card), except that it's not associated with a bank account. You have to add credit at a reload center, which are located at retailers, check cashing locations and supermarkets (such as Tesco, Safeway, Wal Mart etc), then you use it as you would a normal credit card.

Unlike traditional Credit Cards, the Prepaid Credit Card does not extend credit to cardholders. Instead, accounts are prepaid for a specific amount, while still being backed by MasterCard/Visa for near universal acceptance. There is no Line Of Credit and accounts are only good for the balance applied.

We will make no apology for stressing that your credit rating is not a determining factor when issuing the Prepaid Credit Cards. All applicants are accepted, regardless of their Credit History subject to verification of their address etc. There is no Credit Check performed with any credit referencing company and the card is therefore available to all. This opens up an opportunity for those who are normally declined mainstream credit card facilities due to adverse credit, low Credit Score, or lack of credit history. Even young children can use these cards.

As generally used in the English language, "prepaid" and "credit card" are a contradiction in terms. "Prepaid" means you have paid for something before taking receipt of it and will not be receiving a bill requesting payment later. Whereas, "credit card" means that you will be placing the purchase on credit and the lender (issuing bank) will supply the funds to the merchant. Then later when you receive your billing statement from them, you will be required to pay in full or in installments. Thus the commonly used term "prepaid credit card" could be considered an oxymoron. So, it is more accurate calling these cards a Prepaid Visa or MasterCard.

In other words a prepaid card is like a cross between a store gift card and a bank debit card. It is similar to a store gift card in that a certain amount of money has been loaded on it. It is like a bank debit card because it is accepted any place that a major credit card is honored, even online! Unlike a debit card, however, a prepaid card is not attached to a specific bank account.
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There is a great deal more information at the Prepaid Credit Cards Blog about the visa pre paid debit cards.

Best credit company for re-establishing credit after bankruptcy?

I need to re-establish My Credit after a Chapter 7 bankruptcy. I already can show repayment history for subsidized student loans but need to re-establish Consumer Credit. I'd like to find a Credit Card Company, may it be department store or major credit card, that is a good choice for those with poor credit and are looking to re-establish their credit history. I'm not talking a huge credit line. I'd be happy with $100-200 that I can utilize and pay off right away to show use and payment behavior. A major credit card (Visa/Mastercard/etc) would be beneficial... I've learned my lesson the hard way and don't like credit but realize having credit available to me is essential today... I'm going to be in the market for a car and hopefully a house. but first things first.

Anyone have any advice or stories about how they re-established their credit history?

Get a secured card.
It will require a deposit but if you are now trustworthy with your money you should have no problems convincing yourself of it.
After that, the more you use it the more history you'll gain and then your history will "convince" others, (eg: the Credit Report people).

Sadly, if you mess up with a secured card it's your money that goes down the hole, but you just said you learned your lesson so you might just trust yourself to invest into a $300 deposit.

== Heart Of Saturday Night ==

Poor credit credit cards are available! Get approved today!