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Prepaid credit cards 'ideal' for poor credit history
13.05.2008
Prepaid credit cards can be an "ideal" option for people who have had difficulty obtaining standard credit cards, according to Words That Work.
The cards do not require credit checks so the process of getting one is much quicker than with other cards, according to the company. Applications are often accepted "pretty much instantly", so people who have not been able to get normal instant decision credit cards can now do so.
A prepaid credit card is similar to a debit card and has the advantage that users should not be able to go overdrawn, which can be particularly concerning during the current credit crunch.
Sean Gardner, chief executive of MoneyExpert.com, told the Telegraph: "Prepaid cards will work as an alternative to a credit card for some people, especially as they do not allow customers to run up debts."
However, he also warned that although they may help consumers control their spending, the cards "come at a price" and could have a "raft of fees attached".
The cards do not require credit checks so the process of getting one is much quicker than with other cards, according to the company. Applications are often accepted "pretty much instantly", so people who have not been able to get normal instant decision credit cards can now do so.
A prepaid credit card is similar to a debit card and has the advantage that users should not be able to go overdrawn, which can be particularly concerning during the current credit crunch.
Sean Gardner, chief executive of MoneyExpert.com, told the Telegraph: "Prepaid cards will work as an alternative to a credit card for some people, especially as they do not allow customers to run up debts."
However, he also warned that although they may help consumers control their spending, the cards "come at a price" and could have a "raft of fees attached".