Observers in the lending industry have estimated that there may be at least 50 million Americans who are not able to qualify for credit. These individuals are usually young, often members of the fraction groups and unbanked... and they are up against the long-standing dilemma of credit: how can i build my credit history if no one will give me any credit at all?

 

One of the answers offered by the creditors is a variety of pre-paid credit cards, designed for use by specific portions in the market. The pre-paid credit cards are meant for that significant area of individuals that cannot fulfill the training course criteria for regular credit cards, or who qualified before but have since lost their credit due to repeated foreclosures and other reasons.

 

Advantages of Pre-paid Credit cards For those who do not have enough credit history or have had it blemished, pre-paid credit cards are an easy way to build or slowly rebuild credit. brians club That may not happen immediately, but it is something to work on over time. The banks that issue pre-paid credit cards are also ready to extend normal credit the moment you are able to show that you have be a worthy credit risk.

 

For the moment, you may have to make do with pre-paid credit cards. You can use pre-paid credit cards as you would any other regular credit card to purchase airfare, reserve standart hotel rooms, or order items online.

 

Prepaid credit card for Students There is a special pre-paid Visa credit card for students, that provides a lot of convenience not only for the students additionally their parents. These reloadable pre-paid credit cards offer parents several options on what to refill. Parents can add money to reloadable pre-paid credit cards by lodging money, by arranging an automatic transfer of funds from their account (a deposit account or their own credit card account), or by online transfer. Using the pre-paid Visa credit card is no not the same as giving the off the shelf allocated to their child, only they do so by electronic means and there is no more cash that changes hands.

 

The big benefit from the pre-paid Visa credit card is that the student is bound to spend only as much money as there is in the card. The parent is thus able to control to some extent the spending behavior of their child. They can use the prepaid credit card anywhere that the credit card brand is accepted.

 

Pre-paid Credit cards as Gift Certificates Some pre-paid credit cards function like gift certificates. You get the prepaid credit card for a percentage, and your beneficiary should buy items with it at any of the brick-and-mortar stores or online merchants, and also for mail order items, that accept the particular credit card brand. Your beneficiary can use the prepaid credit card only up to the amount of money that you loaded on it. This particular version of pre-paid credit cards is non-reloadable.

 

Like any gift certificate, recipients of pre-paid credit cards can purchase whatever it is they want at any time they want. Unlike a great gift certificate that, when it gets lost is lost forever to the beneficiary, pre-paid credit cards may be replaced if it gets lost or is thieved.

 

Pre-paid Credit cards for Travel There is a prepaid credit card designed for travel. These reloadable pre-paid credit cards can be purchased in lieu of travelers' checks or cash. In a way, it combines the best features of a charge card and a traveler's check due to its convenience and security features. Should you lose the prepaid credit card while you are on travel, you can easily obtain an urgent situation replacement, both for the prepaid credit card and some cash.

 

Pre-paid credit cards for travel are accepted all over the world, and also allow you to obtain currency from ATM machines. When you need to refill and you are already traveling you can arrange for the refill by phone or online. Independent of the fact that it is a prepaid credit card, you can use it exactly like a regular credit card. That entails you enjoy other benefits just like a regular card -- payments for lost suitcases all the way to $1, 000 per cardholder if your suitcases is lost; zero liability if your prepaid credit card is used fraudulently after you lose it or contain it thieved from you; purchase security up to $500 per claim for any items you get with pre-paid credit cards, which subsequently gets thieved or damaged for certain reasons.

 

Generally, you can purchase pre-paid credit cards of all the major credit card brands at their engaging retailers. You don't have to worry about not having acceptable credit because pre-paid credit cards are made available without need of a credit report or a bank account. The only qualifications you'll want are that you have reached 16 years and you need to be able to present a valid identification issued by government.

 

Disadvantages of Pre-paid Credit cards There are a few reasons for pre-paid credit cards that may not be as convenient as the regular credit cards. For instance, you load only so much money into it. You will need to keep track of the balance on the prepaid credit card because not all of the merchant terminals where you use the card may be able to help you determine it. However, there are procedures that tell you how to determine your balance, and you will these detailed on the back of the prepaid credit card and in the instructions with it.

 

The process of reloading your prepaid credit card may be a little bothersome to some. If you're using cash, you must go to the engaging outlet where you bought your reloadable pre-paid credit cards. The more convenient way will be reloading online.