According to an estimate, there are more than 45 millions of Americans are there, who are not eligible for the credit. Most of these populations are belong to minority groups and are young.
Most of them are also yet to avail the banking facility. They have a great appetite for the credit, but don’t know how to access the credit or how to build a credit history. Though they don’t have a credit history, most of the time banks and financial institutions shy away from providing credit to people belong to that group.
Here comes the prepaid credit card
If a person wants to build a credit history quickly, then the only solution is a credit card. But it is almost impossible for a person to get a credit card, who doesn’t have the credit history.
Then what would a person do to build a credit history? Here comes the utility of a prepaid credit card. The person, who wants to build a credit history, can do that by using a prepaid credit card. It is almost not at all difficult to have a prepaid credit card at all. The credit card issuer doesn’t take any kind of risk at all by issuing a prepaid credit card.
The advantages of prepaid credit cards
As mentioned above, prepaid credit card can be really useful to build a credit history, especially for those persons, who don’t meet the eligibility criteria to avail a regular credit card. Though one can’t build a credit history over night by using a prepaid credit card; but slowly and surely, he will be able to do that and become eligible for getting a regular credit card and other credits.
This kind of credit card could be really helpful for students, who want to build a credit history. By having a prepaid credit card, one could do all those things, which could only be done by credit cards like purchasing anything online and other things.
There are some things about the prepaid version of the credit card, which is not as good or convenient as regular credit cards. The first and foremost thing is, you can not enjoy any kind of credit by using the prepaid credit card.
You have to load the money into the credit card before spending anything from it. One other thing is that, you can not able to buy from any merchant terminal by using prepaid credit card. You may not able to check the balance at every merchant terminal also.
Though you may not get all the benefits of a credit card by using the prepaid credit card; but that can really help you to build a credit history, which will make you eligible to access further credit in future. So, if you don’t have a credit history to access bigger credits, then you should go for a prepaid credit card and get the most out of it.