Many business houses aim to make money by providing the customer the option of checking their credit reports. Their credit scores enable them to apply for the best-prepaid credit card. The credit scores are broken up in five categories; 35 % for payment history, 30 % for Debt to Credit Limit Ratio, 15 % Length of credit history, 10 % Types of Credit Accounts and 10 % towards the Inquiries.
It is advisable to understand the pros and cons of the credit cards before selecting one. They are the best card available for people with bad credit or no credit history as in case of immigrants.
The advantages include
=> No credit check required, hence final approval chance very high
=> Fraud liability protection same as a bad credit card
=> Easy for online purchases with anonymous prepaid credit card also
=> Access to cash from ATM Machines
The disadvantages include
=> Expensive for maintaining an account of a prepaid credit card
=> Transaction fees charged for purchases and loading money
=> Very Limited information to credit bureaus, hence no impact on your credit ratings
A few best prepaid credit card include
=> Account Now
=> UP side Visa
=> Jump Card Visa
=> Mango TM ( master card prepaid credit card)
=> Green Dot Gold
=> Baby Phat Prepaid Visa
=> Ready debit Prepaid Visa card
=> Black Diamond Prepaid Visa
=> Silver card Prepaid Master Card
=> Prepaid Visa Rush card
One major lack regarding the prepaid credit card users having bad credit cards is the lack of availability of any past credit records, which is very essential prior to a sanction of a loan. The credit reputation of the prospective customer cannot be judged. Lenders are hence unable to have a glimpse of the borrower’s capacity and hence unaware regarding their credit constraints. The correct credit score is not correctly assessed leading to chances of dubious financial records.
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