In our society, it is important to have a major credit card to make reservations for airline flights, hotels, motels and car rentals. They are also necessary when placing orders online or over the telephone. If a person has poor credit, how can they function? The answer to this problem is to obtain a options for bad credit .

To open a prepaid credit card account, the individual must deposit money into that account in the same way they would make a deposit to open a savings or checking account. Once this is accomplished, he or she is issued a prepaid credit card. This type of card can be used anywhere a regular credit card is used.

A big benefit of having a prepaid credit card is that although you make a number of charges, you do not incur any debt. The money in the account is yours and once that money is gone, you will be unable to spend any more until you make another deposit. There are no interest charges and you do not receive any monthly bills. The concept of using a prepaid credit card is the same as using a debit card which is linked to your checking or savings account. Whatever goods or services you purchase are immediately paid for on the spot!

There is a catch, however, to using a prepaid credit card as opposed to a regular credit card. Firstly, you have to pay a small fee to set up your account which usually ranges from $5 or $10. In addition, you will have to pay additional fees every time you deposit more cash into your prepaid credit card account. Yet this small and inexpensive inconvenience is far outweighed by the benefits for those with bad credit. If you have planned properly, you can do almost everything that can be done by those with regular credit cards and will be able to use your prepaid credit cards for travel plans and car rentals for your vacation or business trips.

There are some areas where prepaid credit cards are not accepted though. One of them is to purchase an item where a fixed amount is deducted from the card each month. Another is for those who might want to use the prepaid credit card to pay for a monthly Internet subscription. Some companies in these areas do not want to do business with individuals using a prepaid credit card because they are concerned that there may not be any money in the account when it comes time to pay the monthly bill.

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