| So you've had some debt problems - maybe due | | | | credit history, you may also be able to apply |
| to something outside your control such as a | | | | successfully for a standard credit card or |
| divorce? Now you're getting your life back on | | | | other forms of credit, such as a bank loan. |
| track, but there's a problem. Because of your | | | | |
| bad credit record, no-one wants to lend you | | | | Your prepaid card can be used just like any |
| money any more. | | | | other credit card to buy things, whether |
| | | | on-line, over the phone or in person. There |
| Well, don't despair! With prepaid credit | | | | is nothing on the card to reveal that it is |
| cards, no credit checks will be made against | | | | prepaid. The only people who will know this |
| your name when you apply. As long as your | | | | are you and your card issuer. So if you need |
| age, residence and social security number | | | | to buy things using a credit card and can't |
| check out, approval is normally guaranteed. | | | | otherwise get one, a prepaid credit card |
| | | | could be the ideal solution for you. And all |
| Here's how prepaid credit cards work. You | | | | the while you will be rebuilding your credit |
| apply just like any other credit card, but | | | | history as well! |
| with prepaid credit cards you also deposit a | | | | |
| sum of money in a linked bank account. | | | | One drawback with prepaid credit cards is |
| Initially at least, the amount of money in | | | | that, unlike ordinary credit cards, you may |
| this account then becomes your credit line. | | | | be asked to pay a processing fee when you |
| | | | apply. This is in addition to the money you |
| Obviously this means that, to start with | | | | will have to deposit with the issuer as |
| anyway, you can't use a prepaid credit card | | | | security. If you regard this as a stepping |
| to borrow money. However, the best cards | | | | stone to establishing a good credit record, |
| report to the three main credit reference | | | | however, this one-off fee is literally a |
| agencies (Experian, Equifax and TransUnion) | | | | small price to pay. |
| every month. As long as you use your card | | | | |
| responsibly, your actions will help to repair | | | | Prepaid credit cards are available from a |
| your credit record, or indeed to establish | | | | growing number of issuers. One example is the |
| one for yourself if you haven't had credit | | | | New Millennium Bank, which offers a prepaid |
| before. | | | | Platinum Visa(R) or Mastercard(R). As well as |
| | | | the benefits mentioned above, the NMB card |
| Within a few months, if you have shown that | | | | offers $100,000 travel accident insurance, |
| you can use your card responsibly, you are | | | | extended warranty protection, and a special |
| likely to be offered a bigger credit line by | | | | high introductory savings rate on your |
| your card issuer. With your ever-improving | | | | deposit. |