Buying online is one of the benefits of a prepaid credit card
0 percent credit card for people with bad credit
0% credit cards are great for improving you credit rating. Also called prepaid credit cards, they look just like any other credit card. You can use a prepaid credit card anywhere that takes credit card payments, including online purchases. The best thing is, anyone can apply for a zero interest prepaid credit card.
How do prepaid credit cards work?
Think of it like a prepaid mobile phone or a gift voucher for yourself; a prepaid credit card works in a similar way. Instead of having a credit limit and therefore a debt to the credit card provider, you put money on to your card and then have the benefits of paying for goods with a credit card. Let’s look at the pros and cons of pre paid credit cards:
Pros
- O% interest
- Poor credit history not an issue
- Enjoy the protection of credit card purchases
- Buy online
- No late payment charges
- You can’t spend money you don’t have!
Cons
- You can’t spend money you don’t have (this can be a pro or a con!)
- Charges for opening/ using a prepaid credit card
The last point is the main disadvantage of a prepaid credit card but if you’ve been on the receiving end of late payment charges or charges for exceeding your credit limit, prepaid credit card charges are tame in comparison. The main thing to remember is to shop around. Compare prepaid credit cards to ensure you get the best deal for your circumdtances. This doesn’t always mean the one with the lowest charges, always read the terms and conditions carefully before you commit to anything.
Will using a prepaid credit card improve my credit rating?
In short, no. Because you load your own money on to the credit card, the information regarding how you use the facility does not affect your credit rating. The main advantage of a prepaid credit card is the ability to make payments where only a credit card is accepted and for the protection offered to credit card purchases.