Best Prepaid Credit Card for Rebuilding Credit
Do you want to get the best prepaid credit card for rebuilding credit? Prepaid credit cards are also known as secured credit cards. They require the same credit application process as a standard credit card. These cards can be useful for borrowers looking to establish credit or improve their credit score. Sponsored borrowers are generally considered higher risk for lenders because they do not have an extensive credit history on which to base a credit decision, or their previous credit score may be low due to past convictions.
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Approved credit card issuers generally allow credit approval for a broader range of borrowers because the card is secured with an initial guarantee payment. If a prepaid credit card loan is approved, the credit card terms depend on the guarantee payment or security deposit. Many prepaid credit card issuers will approve borrowers with a security deposit of approximately $ 200.
Prepaid credit card
The prepaid debit card allows the convenience of your payment card to a person without debt. A consumer can use prepaid debit cards to buy products online or in person. The funds on the prepaid debit card may accompany the card at the time of purchase, or maybe sent by merchants affiliated with the card. Prepaid debit cards are a convenient way to store money for purchases and electronic transactions. Credit issuers can issue them as American Express or PayPal; however, they do not require a credit check and are not related to the consumer’s credit history. Cards that do not have enough money stored in electronic purchases will be rejected.
Capital One® Secured Mastercard®
Capital One® Secured Mastercard® is one of the few guaranteed credit cards that offers some cardholders more credit limits than their initial deposit. It is also worth mentioning that the fees are relatively low and a ready process to qualify for increases in credit limits. So-called increases do not require additional cash deposits, further reducing the cost of the card.
OpenSky® sponsored Visa credit card
While associated with a modest annual fee, the OpenSky-sponsored Visa credit card has one of the lowest Annual Percentage Rates (APR) with credit cards. Its application does not require a credit check either, making it an excellent option for people with poor or irregular credit. The negatives include a lower credit limit than some competing cards and no balance transfer.
Citi® Secured Mastercard®
The Citi Secured Mastercard selling point is its nonexistent annual fee. Otherwise, it is quite average, and like most credit cards, your credit limit is always equal to the amount deposited; there is no way to increase your credit limit without making an additional deposit. Citi also denies card applicants who have recently been bankrupt, making this card unsuitable for cardholders who are only incurring serious debt.
Visa® Card sponsored by U.S. Bank
The main advantages of a Visa Card sponsored by the Bank of EE. USA They include easy approval from bad credit applicants and a reasonable APR (relative to other secured credit cards). The unusually long grace period of up to 30 days, compared to the typical 20 to 25 day grace period for this class of cards, is a useful backup against late payments. The disadvantages include fees that are quite high.
Before you go, I hope this article about the best prepaid credit card for rebuilding credit is helpful for you.