Credit Card Debt–If You Can’t Yet Start Over
Credit Card Debt–Moving Forward
The last edition of this column provided some advice for those who are struggling with credit card debt. It was directed toward people who still have some hope of digging themselves out of their hole, but ended up suggesting a way forward for those who’d hit bottom, and were now seeking ways to rebuild their credit scores.
It recommended signing up for a secured credit card, such as the Public Savings Bank Secured Card, the Applied Bank� Secured Visa� Credit Card, or the New Millennium Bank Secured Gold Visa� or Mastercard�. Secured credit cards usually report your account activity to the big 3 credit bureaus (make sure that the one you pick reports to all three) so you have an opportunity to repair the damage to your credit score.
Credit Card Use Without the Credit
But the problem with secured credit cards is you have to lodge an upfront deposit with whichever of the credit card companies you choose. Hence the “secured” bit. And many people who’ve recently had debt problems struggle to find spare cash for such a deposit.
They may find it easier to go for a prepaid credit card. You don’t need a deposit for these, and you can spend money that you credit to the card as soon as it shows up on your account. You don’t get to fix your credit report or score, and you don’t get to spend any money that you don’t have, but you do receive many of the convenient payment services (though not for car rentals and hotel rooms) that cards issued by mainstream credit card companies provide.
Services Improving All the Time
Indeed, the facilities offered by prepaid credit cards are improving all the time. Just yesterday, MasterCard announced a new bill payment service that it plans to introduce for those with prepaid cards that carry its branding. According to the company’s press release: “…the service enables delivery of electronic bill payments to more than 6,000 national and regional U.S. merchants via MasterCard RPPS – the largest online database of billers available…”
Read Prepaid Credit Card Terms Carefully
It really is important to read prepaid credit card terms and conditions carefully before you sign an agreement. Last year, the New York Times ran a feature warning that some cards come with fees hidden in the small print that can make them extremely expensive to use.
The trick is to understand how you’re likely to want to use your card, and then find one that suits your personal circumstances. Three that are well worth considering are:
- ACE Visa Prepaid Debit Card
- ACE Pink Visa Prepaid Debit Card
Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.
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