Prepaid

Ways to improve your credit rating with a prepaid debit card

Oct 3rd, 2011
by Philippe Dalaniouston.
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A bad credit file can make life really difficult in this current recession. More and more people are reliant on borrowing money from anywhere they can, be it through loans and credit cards, in order to live financially. Borrowing money is harder than ever nowadays so having a mark against your name for missed payments for credit cards bill, utility bills or any other financial obligation can cause severe difficulties in the future.

Something that can make the situation worse is constantly applying for credit and getting rejected. This constant application leaves a trace on your credit file which does not help at all. If this happens to you, then your last resort may be by borrowing through the sub-prime market which is not favourable as you will be charged extortionate interest rates. If this sounds like the scenario you might be facing, then below are several steps you can take in order to help you salvage your credit rating without taking drastic measures. One vital thing to do first is to check your credit score so that you can take action to improve it if you need to. Visit credit agencies online, such as Equifax and Experian, to check your score.

There are simple steps that you can take to improve your rating such as making sure you are registered on the electoral roll at your current address; making sure that all your current debts are under your correct name and address; ensuring that there are no other mistakes on your file, such as someone else’s debts or payments and lastly, shut down any previous credit agreements you no longer use. Lenders like to make a note of any stable factors in your life, for example, when filling out an application form for credit, make sure you write down your home landline number as opposed to your mobile number. Other factors such as a long employment history, a fixed place of residence and a long term history with a bank also will help you with credit applications.

Once you have gone online to check your credit score and history, you can take the necessary steps to recover and rebuild your credit file. One of the simplest ways to start is to purchase a prepaid credit card. These are fantastic if you have applied for credit and debit cards previously and have been rejected due to an unfortunate credit history. The great thing about prepaid cards is that you do not need any identification or a credit history – you simply buy it, load it with money and then spend it like a normal credit card.

Prepaid credit cards are a great way to build your credit rating as these prepaid cards feature special benefits for those you are in need of help in the credit department. You sign up for them and then pay a monthly fee for twelve months and these payments are noted down and then sent to various credit reference agencies that will see that you are making payments on time. This will prove to them that you are handling your money management sensibly, responsibly and are credit worthy. Over time, using these prepaid credit cards will definitely improve your credit. There are several types of prepaid credit cards on the market so spend some time researching which one will best suit you.

If you are one of those unfortunate people who have never had credit but have still been turned down, then don’t worry as you are not to blame. Creditors feel more secure dealing with people who have had a previous history of successfully paying off credit. So those who have taken out a loan or have mortgage payments are more likely to be able to apply for credit than those who haven’t. To build a credit file from scratch, think about purchasing a prepaid credit card as you can use it to make regular payments and hence re-establish good credit. It’s as simple as that!

This author is a consumer products researcher, focusing in bank cards and personal finance. He recommends downloading a free thirty six page guide called the ‘Essential Guide To Your Money‘. For more information, go to the prepaid card website.

Holiday without any worries using a prepaid card

Sep 28th, 2011
by Amji Dhalasinfok.
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Going on holiday is an eagerly anticipated occasion nowadays as the average family takes only one overseas holiday a year. These are the times where you want to have fun and get away from the dramas of day-to-day life. So what happens when your stress free holiday turns into a stress filled nightmare? Probably not much if you are away right?! Simple planning before you go abroad can reduce the anxieties and arguments that can happen while you’re on holiday.

To stay away from any drama and distress that can be caused while you are on holiday, think in advance of the steps you need to take before you leave as that will make or break your holiday. So issues such as spending money, hotel booking references, taxis to and from the hotel and travel insurance should be the first things you should think about before setting off on your travels. Most people would, without a doubt, say that money is their chief anxiety when they are abroad as things tend to add up considerably when you’re enjoying yourself. Take the necessary precaution by creating a sensible and realistic budget to stick to while you’re away so that you don’t come home broke and depressed.

One simple suggestion for sticking to a budget is to invest in a prepaid credit card before you go away. You can load your card with money and then use it for expenditure whilst you are on holiday, for items such as food, souvenirs and excursions. Because it is a prepaid card, you can only spend what you have loaded on the card which prevents you from overspending so there is no need to fret about being overdrawn by the time you come back home! Plus you can monitor your transactions and balance on a regular basis via your mobile phone or even online.

If you travel abroad on a regular basis, be it on holiday or for work purposes, a huge burden that you may face is the thought of carrying a vast amount of currency around with you. You have the strain of constantly worrying that you money or your traveller’s cheques will get lost or, even worse, stolen by criminals. If something like this occurs, what can you do? It’s not as if you can insure your cash and then reclaim it. Your much awaited getaway becomes a dreaded experience that has you running home. So, what can you do?

This is where prepaid credit cards are useful again as they are seen as one of the most protected ways to travel. Because there are no connections to any bank accounts or credit cards, criminals and fraudsters have even more difficulty stealing your money. You also have the comfort of knowing that if you purchase a prepaid card, if you do happen to lose it, then you don’t have to cancel all your other existing credit or debit cards as there are no links.

If you purchase a prepaid card before you go on holiday, if you do lose it, then you don’t have the hassle of cancelling all your other cards. Plus, all the money loaded on your prepaid card is protected thanks to chip and PIN security making it even more difficult for criminals or fraudsters to get hold of your money. Prepaid cards work like normal credit cards once they are loaded so you can use anywhere you see the MasterCard logo, so places like hotels, restaurants and shops will happily accept it.

Bon voyage!

This author is a consumer products researcher, specializing in bank cards and personal finance. He recommends reading a free thirty six page guide called the ‘Essential Guide To Your Money‘. For more information, go to the prepaid credit card website.

Beat ID thieves with a prepaid mastercard

Sep 27th, 2011
by Marckous Wukalanski.
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Lately, several stories keep cropping up in the news that has us turning up the volume. We hear about identity fraud more and more over the last few months as this is becoming a hot topic, especially in this current economic climate when money is so tight. Just the other day, a pensioner was duped out of nearly 10,000 worth of fraud on his Barclaycard. Bob, from Exeter, was astonished when he found out that swindlers had spent 9,200 on his credit card in one day! The crooks then spent the whole day in various Apple stores across Bristol making 16 transactions over the value of 500 each time. They were able to gain information about Bob by simply pretending to be him over the phone!

This story is not unheard of lately as criminals and charlatans are becoming even more cunning than before to try and get their hands on your cash. There are straightforward things you can do to put off thieves. One of the easiest things you can do is cease all paper statements being sent to your home address. Smart fraudsters are able to recognise certain pieces of mail such as credit card statements and bills so they can use your details for fraudulent activity. If your bank does not offer this service, then you should think about purchasing a prepaid card.

Prepaid debit cards work very similarly to credit and debit cards apart from the fact that you have to load funds onto the card first before you can start using it. The good thing about prepaid debit cards is that there are no paper statements sent to you so your chances of being a victim of identity theft are reduced significantly. With prepaid debit cards, you are able to track your balance and transactions instantly and in real time online, via your mobile phone and via SMS.

Other ways fraudsters can attack is by cloning your card. They can use a simple machine that copies the magnetic strip on your card and then are able to make an identical copy as they have all the information they need to start using your card. This is a very common type of fraudulent activity, particularly if you are on holiday as most places abroad, such as hotels and restaurants will swipe your card using the magnetic strip as opposed to asking you to enter your PIN.

If someone has cloned your card, what can you do? The chances are that if someone has managed to steal all your financial details whilst you are on holiday, the only thing you can do is cancel all your cards as they are probably linked to one main account. A helpful way of securing your cash whilst abroad is to invest in a prepaid card. Because there are no links to any bank accounts, your cash is secure and you have peace of mind knowing that you won’t be a victim of fraud.

Finally, one of the safest precautions you can take when beating fraud is to maintain a regular check on your credit, in particular, your credit file. Make sure you keep a close eye on any requests that have been made in your name, particularly for credit cards, loans or bank accounts. If you have already had the displeasure of a poor credit rating thanks to criminals, don’t distress as there are easy procedures to help you restore your credit rating. Check out credit building prepaid credit cards on comparison websites to help you find a prepaid card to strengthen your credit file over the next few months.

This author is a consumer services analyst, focusing in bank cards and personal finance. He suggests downloading a free 36 page guide called the ‘Essential Guide To Your Money‘. For more information, visit the Blue Sky Prepaid MasterCard website.

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