Prepaid Credit Cards and Debit Cards

Prepaid credit cards and debit cards have become more and more popular these days since the credit crisis of last year. Credit card issuers and banks have raised the bar when approving credit cards for borrowers.

Gone are the days of easy credit like getting multiple credit cards from the same bank or getting a mortgage without proving your income.

Credit card companies are also lowering credit card limits for even their best credit card customers. The Credit Card Holders Bill of Rights has also changed the credit card business. New rules include giving a credit card holder 45 days advance notice when any major changes to their account is made, like raising the credit card limit. The new rules don’t include notifying a holder when their credit limit is lowered.

As a result of more restrictive credit, consumers have been turning to prepaid credit cards and debit cards to make purchases. A pre-paid credit card allows one to enjoy all the benefits of having a credit card without the risks. You can only spend what you have on your prepaid card limit.

Prepaid cards also allow you to build your credit history and credit score. Other features include direct deposits to a prepaid card, replenishing your balance. Best of all if you have less than perfect credit or even a bad credit history, you will more than likely be approved for a prepaid card.

Debit cards are another alternative to traditional credit cards. With a debit card, your purchases are withdrawn from your checking account. Although with a debit card you might not have all of the benefits of a traditional credit card, including being covered for auto insurance when renting a car.

Looking for Prepaid Credit Cards, Debit Cards or Credit Cards? MonitorBankRates.com has a credit card search engine you can use to find a card that fits your needs.

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