Credit Cards for Bad Credit: Prepaid Cards to the rescue
Thousands of UK customers get rejected for a credit card or a bank account on a daily basis. Statistics in 2008 suggested that over 18,000 UK credit card applications are being rejected every single day. This can be for a number of reasons which include having a poor credit history or CCJ’s which typically result in a rejection or approval for a credit card with outrageous APR and interest rates.
However, contrary to popular belief, there are several good prepaid credit cards available for those with bad credit and these prepaid credit cards for bad credit are ensuring that everyone has access to plastic payments irrespective of their background or credit history. In fact, not only are these prepaid card providers providing access to card payments to those with bad credit, there are a few who actually provide tools to actually improve that poor credit history.
Why is my Credit History Not Important
Well, your credit history is undoubtedly important as an indicator of your financial stability and in order to get access to credit but with regards to a prepaid credit card, it is really irrelevant. The reason is that funds stored on a prepaid card are your funds and there is no credit involved. Hence, there are no credit checks or bank accounts required and everyone who applies for a card gets one as long as the applicant can provide proof of address and identity.
Prepaid Cards Save the Day
So it is not surprising that many view prepaid credit cards as an excellent way of managing their finances and getting access to electronic payments if they have a poor credit history. Of course, as with all financial products, you should take your time to select the right prepaid card for bad credit by checking the terms and conditions, fees for purchase, loading and using along with any other risks involved.
The unfortunate truth is that mainstream credit card providers more often than not will shy away from people with bad credit and county court judgements against them or those who have no credit history at all for whatever reason as they will typically consider these are subprime risky customers. Prepaid Credit cards ensure that all consumers are financially included and everyone has access to electronic plastic payment channels which allow them to shop online, over the phone and instore.
Find out more about how a prepaid card can help you if you have a poor credit history, CCJ’s or no credit history at Prepaid365.