Debit Cards or Credit Card With Bad Credit
The purpose of this page is to provide Credit, and Debit Card, options for people who have less than perfect credit. Most people know that, at some point, they will have to start the process of repairing their credit. You can get 100% Free Information that will help you stop collection calls. Avoid credit repair scams. Choose the right service to fix your credit report. And raise your credit score. Plus receive a Free Credit Evaluation. Sign Up Now at CreditAssist1.com.
But this page you are on now provides information on credit cards for bad credit. It is for those looking to learn more info on the subject.
Cards with the Visa or MasterCard logo basically fall into one of three categories. An unsecured credit card, secured credit card, or a debit card. This webpage will provide an overview about these, and explain the difference between each type of card. This will include the benefits, and disadvantages.
This website will also help you get a card specifically for people who have poor credit.There is a link further down on this page where you can submit a free application for type of card you choose.
Even if you have a negative credit report, and low credit score, there are options available to obtain a credit card. You can also choose to get a prepaid debit card which is accepted exactly the same.
We all know that it is a necessity today to have at least one card for simple things in life like renting a car, reserving a hotel room, shopping online, using bill pay services, etc. But millions of people are denied approval for credit cards, or debit cards, due to past credit problems, bankruptcy, etc. Now there are more options and alternatives available that will allow anyone to get approved.
But first we want to quickly explain what is the difference between credit cards and prepaid debit cards.
What is the difference between the two? There has been much confusion because the basic setup to obtain a prepaid debit card or a secured credit card are very similar.
With traditional unsecured credit cards you are approved for a balance limit. There is no collateral required. They essentially just send you the card. You activate it, and are free to start using it up to that balance, or credit, limit. These companies will do a credit check prior to approval. If you have a negative credit report they will view it as proof of a credit risk.
It is kind of unrealistic to think that any company is just going to send someone a card… and then let them start charging away,,, if, for whatever reason, there is already a record of not paying their credit. The credit card company is going to require some sort of upfront collateral before they send you a card. These are called secured credit cards.
These are real credit cards! They are specifically designed for people who are unable to be approved for a traditional credit card. When you get these type of cards you are required to establish an account upfront. It is held as collateral. Then the credit card is sent to you with a credit balance equal to the amount you have in that account.
For Example: You set up account with $200. Then you later receive a credit card with a $200 credit limit. The bank account you set up is only collateral. It is separate from your credit card. Therefore if you charge $150 worth of stuff on the card. You will receive a bill for $150, plus interest charges. And you will only have $50 credit remaining until you make payments. You will have to at least make the minimum payments on that bill every month. Your payments are reported to the credit bureau each month. Which means if the card is used responsibly it can help you repair and rebuild your credit! However, if you make late payments then it is only going to make your already bad credit even worst than it is.
Again, it is important to remember that even though it is a secured card, and you had to put up money in order to get it. This is a very real credit card. If you don’t make payments on time that will be reflected on your credit report. And you can never request that they just take the payment out of that account you set up! It is completely separate. You get that money back whenever you cancel the secured credit card.
Debit cards look exactly the same as credit cards for bad credit but they are different! Debit cards are basically ATM cards just like what a bank gives you with a basic checking account. It really was not that long ago when all ATM cards were just plain looking cards with the bank’s or company’s name on it. But in the past few years nearly all of them now have the VISA or MasterCard logo. This allows you to use them at any store, online, any ATM machine, or any where VISA or MasterCard is accepted. This is what causes all the confusion.
The bottom line with a debit card is that you load money on to the card, and then you use it up to the balance that is on it. There are no monthly bills. There are no interest charges. You are not required to make monthly payments on it.
For Example: You get the card and then load $200 on it. Then you charge $150 worth of stuff on using the card. You now only have $50 left on the card. Once that is gone you can no longer use the card until you put more money on it. And this repeats itself. You load money on the card… then you use it… then you load more money on the card. Most people use them for their day to day life, just like a checking account. They set up direct deposit of their paycheck from their job and the card is reloaded every payday.
Getting A Prepaid Debit Card
Or Credit Cards For Bad Credit
Which One Is Best For You?
They both require you to deposit money, in advance, to set up an account and start using the card However they operate very differently and have different benefits. So which one is best for you? It depends on your particular circumstances and what your individual immediate needs are.
If your main concern is just to have a card with a Visa or MasterCard logo that is accepted everywhere, to conduct your day to day living expenses, shop online, etc. Or you need to set up direct deposit of your paycheck. Then a prepaid debit card will be the best solution for most people. Statistics overwhelmingly show that this is what most people are looking for.
However, if you have less than perfect credit and your main concern is to rebuild and repair your credit report. Or if you are somebody that needs to establish credit… then a getting a secured credit card is the best choice for you. This is because the credit card will report your monthly payment history to all three of the major credit bureaus. Equifax, Experian (use to be TRW) and Trans Union.
With the debit card there is no monthly bill. There are no payments. So there is nothing to report to the credit bureaus. Therefore prepaid debit cards does absolutely nothing to help your credit. But credit cards for bad credit will help your credit… Only If It Is Paid On Time!
So should you get a prepaid debit card or credit cards for bad credit? From the numerous emails and feedback that we receive at BadCreditAssistance.com, for most people it comes down to a choice between:
1) How much do they really want to start establishing, or rebuilding, their credit?
2) Do you really want to create a new bill that needs to be paid month, after month, after month. Which is basically what a credit card is?
Choose The Option That Is Best For You
Click Below To Visit Their Website
Capital Bank Open Sky
NetSpend is considered one of the very best pre-paid service providers. It operates just like a checking account, and is used by millions of people throughout the U.S. who for various reasons have been denied a checking account.
There are No Credit Checks and No Chexsystems Checks. You get a ATM debit card with a VISA, or MasterCard, logo. A routing number and account number for easy set up of direct deposit. 24 hour access to you money. Online bill pay services and more
Inexpensive services that will allow you to pay your bills online. Whether you have fair credit, bad credit, no credit, or a bank has denied you a checking account
Simply click below to apply! Your application will be processed. Your account will be activated. And your ATM card will be immediately mailed to you.
Plus NetSpend will pay your a Free, No Obligation, $20 bonus when you start your account with at least $40. You will have a total $60 balance.
Then the sooner you fund your account the sooner you can start using your card.