College Student Credit Card

Posts Tagged ‘bank’

If you have no credit history yet, but want to obtain a prepaid credit card, you will be glad to discover that you have better chances of being approved than if you applied for some unsecured credit card. Given that you do not have credit history, credit card issuers will find it more difficult to assess your credit worthiness and reliability. With unsecured credit cards, persons with no credit history are regarded risky borrowers. Prepaid credit cards, on the other hand, require that the borrower deposits money which is the card’s line of credit. Obviously, this does not involve the same risk credit card companies take with unsecured credit cards.

If you seek to apply for Canadian prepaid credit cards, you should check the fees credit card issuers charge when offering such cards. While you will not be charged late payment fees or interest when using the card, some companies require an initial set up fee. You might pay a fee for each deposit into the account. Ask the issuer if the card offered can be used to purchase items online, make airline and hotel reservations, place phone orders, and so on. These transactions are not offered by all credit card companies.

It is a good idea to apply for a credit card that can be loaded from one location but then used in others. Some issuers offer ‘home and away cards’. Note that such cards are typically offered to parents of college-age children. You should not expect to be approved for a credit card for children under the age of 13.

If you get approved for a prepaid credit card in Canada (prepaid Visa or prepaid MasterCard), you should know that the card is used much like the unsecured varieties. One key difference is that secured credit cards go with a lower limit, equal to the deposit you make. Prepaid debit and credit cards also work differently. You shop on credit with a prepaid credit card.

The best part of using secured credit cards is that you cannot spend as much as to get yourself deep in debt. You pay money upfront, and your purchasing power will be limited to the amount of money deposited. Applying for a prepaid credit card is also a good idea if you are a parent and want to give your child a card while limiting his/ her purchasing power. However, if you want to pay for an item, for which recurring payments are made, you will find out that you cannot do this. Internet monthly subscriptions fall into this category. Many businesses do not accept prepaid credit cards, and there is a good reason to this. Companies have no guarantees that money will be available in the account each month. So, money may not be available in the account when the time comes to pay bills.

Learn more about prepaid cards at credit prepaid articles.