January 20, 2022

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The Four Biggest Advantages of Prepaid Credit Cards

There are various prepaid credit cards available today. For those who have bad credit ratings and thus denied of a regular credit card find solutions in the prepaid re-loadable credit card. They get the same features as a regular plastic card only you have to load money first and whatever amount you deposit is going to be your credit limit. There are definitely lots of prepaid cards out there and sometimes it might just confuse you which one to choose. You just have to do proper research and check out your choices online. Read carefully their terms and conditions and check their fees. Watch out for any hidden fees because that might just break your pocket in the long run.

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* Probably the card that is a best choice is one that offers credit builder. What then is a credit builder? It is actually a tool that not all prepaid plastic cards offer. This tool is used to help you rebuild your credit rating. If you have this type of prepaid card that has a credit builder feature then all your payments to this new card will be reported to the three main credit bureaus that are Equifax, Trans Union and Experian VCC buy . Indeed this is a great tool for those people who are trying so hard to regain their credit freedom. This is by far the best option that you will have if you are trying to gain back the trust of the credit institutions. Having a bad credit score can affect everything in your life, you are completely denied of the benefits of any credit institutions.

* Other benefits of these cards are the convenience it gives. They are accepted worldwide whether it is Visa or MasterCard, you can use it in any grocery store, restaurants, mall, gas stations, online shopping and many more. You have the freedom of using it anywhere, just hand in your card, sign a receipt and get your card back and transaction is done. That is how fast it is and easy.

* One more big advantage of prepaid credit cards is that you are able to budget your money, you don’t have to worry of over spending since you can only spend the money that you load your card. If your balance is getting low then you can readily reload it and continue to use the card.

* It is the safest way too for you since you don’t have to carry large amount of cash anymore. All you have to bring with you is your prepaid credit card and you are ready to go. If in case you lose it you can immediately cancel the card making your money safe.

With concern growing over the high cost of penalties credit card holders have been required to pay, changes were recently implemented and mandated. The new rules are now in place whereby people actually have protection against late payment, over spending limit, and other credit card fees deemed ‘unreasonable.”

With these new rules, credit card companies are no longer permitted to charge anything over $25 when payments are received late. The only exception would be in extreme circumstances but even then, these companies cannot charge account-holders for not using the cards to make purchases. Additionally, any rate increases imposed on account-holders starting on January 1, 2009 would have to be reconsidered under the approved regulations established by the Federal Reserve Bank.

With this federal legislation now passed, credit card companies must adhere to new restrictions pertaining to interest rates and various fees on credit cards. Although a number of changes have been seen over the years specific to credit cards and usage, this new change is without doubt the most aggressive and comprehensive in history for the credit card industry.

In addition to credit card companies being required to make changes in response to this new law known as the Credit Card Accountability, Responsibility, and Disclosure Act of 2009, or CARD, the banking industry has also implemented necessary changes. As a whole, the banking industry has taken quick action to ensure every aspect of this law has been put in place.

Although banks and credit card companies have executed the requirements of the new Federal law, before the full scope can be realized it will take some time. However, changes will eventually become evident as consumers begin making different choices and gain more control over spending but also accountability and responsibility. All aspects of this new law are favorable for credit cards account-holders but the one that seems to be getting the most consumer interest is the potential for lower interest rates.