Which credit cards are better for bad credit?
A prepaid credit card might sound like a quick solution for people looking for credit cards for bad credit trying to do their shopping online or for anyone who likes to have a control on their spending. The reality about these prepaid credit cards are far worse than you can image, very few people realize the numerous never ending hidden factors that they come with.Are you aware that every prepaid credit cards come with terms and codntions which you should be aware of?
There are lot of reasons you should consider before choosing prepaid credit cards for managing your finance:
- Check to see if your prepaid credit card comes with Monthly Fee. Most companies charge anywhere from £5 to £10 referring them as ‘maintenance’ charge. This goes un-identified as first three months are often waived.
- Check to see their expiration date. These cards come with short expiration date and you will also need to pay some money to activate the card later.
- Check to see if your bank would allow you to withdraw money. Most banks don’t allow customers with pre-paid to withdraw all the money and sometimes these restrictions are even imposed by companies who sell these cards.
- Check to see if the card acceptance place. Prepaid credit cards companies advertise they are accepted everywhere whilst they aren’t. And some prepaid cards can be used to shop only with select retailers and others anywhere where you can use your Visa or MasterCard Debit Card. These are often called Open and Close Loop by the companies.
You can also consider applying for poor credit credit cards and enjoy the little extra they add being a credit card. They offer credit limit upto £1000 to help you with personance finance and to help you fix your credit history on a long run, hence the expensive rates. They also have a dedicated customer service to support you on how to improve credit rating.
Bad credit credit cards are often accepted everywhere as they are just like any other credit cards, statements can also be checked instantly. Most credit card applications for people with bad credit history are accepted and come with high interest rates, but you would slowly start to realize the benefits of fixing your bad credit which prepaid credit cards can’t promise.Be wise and make your right choice choosing the credit card you need.
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Tags: Bad Credit, Credit Cards, Credit History, Credit Rating