How can I Use My Debit Card Wisely?
Copyright (c) 2010 Tara Tiemann
One of the most effective ways to rebuild a damaged credit reputation is to take new credit accounts. By discretely using a new line of credit, you can gradually improve your credit standing until such time that you are able to fully regain your credit worthiness. And soon enough, lenders will be once again very eager to let you assume new credit programs.
But, which type of credit account should you use to recover your credit reputation? Well, you can always apply for and use a prepaid debit card. How does this card program work? What can a prepaid debit card do for you? To answer these questions, continue reading this short article. Furthermore, I have included two tips on how you can use your debit card wisely.
What Exactly is a Prepaid Debit Card?
A prepaid debit card is a type of card program normally offered to consumers with bad or no credit history. These cards actually help borrowers re-establish or build their credit profiles. Issuers of this type of bad credit-credit card normally do not perform credit checks on their applicants. So no matter how good or bad your credit standing might be, you can still get approved for this type of card.
What are the major requirements in applying for this type of bad credit-credit card? Applicants for prepaid debit cards must at least be 18 years of age and with stable sources of income. They should also have sufficient documents to prove their identities as well as citizenship. Most importantly, they must provide existing bank accounts which will be linked directly to their debit cards.
After submitting all these requirements, prospective cardholders can instantly get approved for the prepaid debit cards they need.
How Does a Prepaid Debit Card Work?
Debit cards actually work just like regular plastic cards. So, you can use your prepaid debit card wherever credit cards are accepted. You can use your card in making hotel reservations, in signing up for online purchases, in booking flights and even in paying your utilities and monthly bills.
Keep in mind that you must load money first onto your account before you can start and continue using it. The amount of money you have loaded onto your bad credit credit card will serve as the available balance you can use in making purchases and paying bills. Now, what will happen if you will charge more than the funds available on your card? If this happens, then all your future transactions will be declined until you are able to reload cash onto your bad credit credit card.
Tips on Using the Card Wisely
1.Check your available card balance regularly. Before making use of your debit card, you must always check if your have enough funds. This way, you can avoid encountering declined transactions and paying declined transaction penalties. Monitoring your card balances will also help ensure that you can continuously enjoy the benefits of shopping and paying with the use of your prepaid debit card.
2.Let the card teach you the basics of budgeting. Prepaid debit cards actually teach consumers to live, or spend only within their means. To live in accordance to this, you must consider your monthly budget before you decide how much money you will load onto your debit card. Resist the urge of loading large sums of cash onto your prepaid debit card. This way, you can effectively avoid the temptation of spending on costly yet unnecessary merchandises and items.
We hope that this short article on prepaid debit cards helped you appreciate these card programs even more. Hopefully, the above tips I mentioned can help you use and manage your prepaid debit card wisely.
About the Author
Tara Tiemann is a credit analyst of http://go-prepaid.com and has been a resource site for people who want to live debt free! If your on a budget using pre-paid credit cards and pre-paid cell phone services can save you big money!
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