Reloadable debit cards are now in vogue, especially since more and more financial institutions are holding back on their issuance of new credit cards. In fact, many banks are even slashing the credit card balances of many clients. If people who have good credit ratings are facing difficulties in securing new credit cards, how much more difficulty would a person with bad credit have to undergo to get approval for a credit card application? Do not ever think that you are in a rut if you have poor credit rating. There is an easy way for you to rebuild your bad credit.
For people who want to improve their credit rating, getting reloadable debit cards is a very wise step. Many people have realized that even if they have started to pay their loans and mortgages on time, a number of financial institutions are still wary of trusting them. It seems that paying your debts is not enough to prove that you are worthy of a better credit score.
Reloadable debit cards, also known as prepaid debit cards, are very similar to credit cards. Establishments and merchants who are accepting credit cards will surely accept your reloadable debit card too. One major difference between a prepaid debit card and credit card is that you will be the one to dictate how much your limit is. As you may have already known, the credit card limit (and also the interest rate) is dependent on the decision of the issuer. Not so when it comes to debit cards.
One of the reasons why not many people are using reloadable debit cards is that many really do not know how these cards work. In reality, however, this type of debit card is really quite easy to use. In essence, you will need cash in order to load money to your reloadable debit card. So, the amount of money you spend is limited on how much money you load into it. The good thing about this debit card is that you will be able to use it like a credit card but you do not have to worry about exorbitant finance fees and default payments. Furthermore, with reloadable debit cards, you will be compelled to just spend money that you have. Your credit rating will be positively affected if you are able to show that you are using your prepaid debit cards wisely. Maintaining such cards for a few months or years would truly help improve your credit score.
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