Are you looking for an easy and low cost way to keep control of your finances?

If so, a prepaid credit card could be the answer.  Prepaid cards have been growing in popularity over recent years and they allow you to keep close control over your cash by only ever letting you spend money that you have pre-loaded onto your card.

They can be used at ATMs to withdraw cash and for purchases online or on the High Street.  If you’re considering a prepaid credit card, here are ten things you should know about this type of plastic.

1. You can’t go overdrawn

Prepaid cards have no overdraft facility.  You can only spend the money you have loaded onto your card and so there is no chance of you going overdrawn.

2. You can use a prepaid card abroad

Many prepaid cards are accepted overseas which makes them perfect for your holiday spending.  You can load your card up with cash before you leave and then use it whilst abroad to withdraw currency at an ATM or to pay for goods and services.

3. You don’t pay interest

As you are only ever spending your own money, you never borrow from the card provider.  This means that there is never any interest to pay.

4. It is easy to manage your card online

Most prepaid credit cards let you manage your account online.  This makes it easy to check your balance, monitor your spending and to top up your card.

5. You can withdraw cash at an ATM

You can use your prepaid credit card to withdraw cash at most ATMs.  You can normally withdraw the money in your account or a maximum daily limit.

6. You can credit your salary to your account

Many prepaid cards allow your employer to credit your wages directly to your prepaid card.  You can also top up your card online, at a bank or PayPoint or from another bank account.

7. It is an easy way to do an international money transfer

Many prepaid credit cards allow you to add an additional card to your pre-paid account which can be sent to a family member or friend who lives overseas. You can top up your card with cash in the UK, and funds can be withdrawn instantly abroad in the local currency.

8. You don’t need to go through a credit check

A prepaid card is not a credit facility and so you do not need to pass a credit check.  Even if you have a less than perfect credit history you can normally take out a prepaid credit card.

9. You can use your card to shop online

Saving money by buying goods and services online is easy with a prepaid credit card.  You can use it on the web in the same way that you would use a traditional debit or credit card.

10. You can use it to register for online services

You can use a prepaid card to register for services such as eBay or PayPal. If you are buying or selling goods online, or you need to transfer money, you can use your prepaid credit card to benefit from services such as PayPal.

                          

Some fellow friends who are still studying in colleges asked me – Should a college student apply for a credit card?

Nowadays we can see that the terms for credit card have made it more difficult for college students to get a student credit card. And in fact college students need to think twice before getting one. We all know what are the pros and cons of using credit card, right? There are many college students became victim to the credit card debt trap at an early age.

Whatever it is, there are still a few benefits for college students to have credit cards.

Get used to credit card
It is a high possibility that you are going to deal with credit cards in the future steps of your life. You can bring yourself into the habit of using a credit card with good attitude including and paying the bills as soon as possible.

Build your credit rating
When you make your first major purchase such as car or real estate including home, you will realize one important thing for your financial management which is your credit score.

The earlier you get a credit card for yourself the earlier you can build your credit rating. Besides that, your credit rating becomes very important as you graduate from college and make your next step into your life. The point here is – if you begin building up your credit rating at an early age, you have the potential to achieve some big benefits later on in your life.

Getting the benefits of a high credit score in your working time
A high credit score can save you a lot of money over the period of a loan. High credit means that lenders see it is less of risk to give you the loan.

When you are buying your first car or first home, you are going to apply for a loan. And believe me, you don’t want to mess yourself with the credit problems.

One more question is, if a college student uses credit card, how is he/she going to use it effectively? Let’s see some of the simple tips below.

• Using the credit card with a minuscule limit.
• The credit card is used for reoccurring monthly expenses.
• The credit card is only used in emergencies.

By doing these ways, a college student can minimize the risks from using credit card and looking to get benefits in the future as had been mentioned before this. So how about it? It is your choice!

                          

Do you aware of the importance of your credit rating?

Believe it or not, many consumers today don’t really understand the importance of their credit rating and its effects on their lives. Some of them are not even aware about the existence of credit rating and the fact that they are able to access to it online.

The rating comes from credit score called FICO score – a mathematical way of condensing all the information in your credit history down to a single number that represents your credit worthiness and loan risk. Through this numbers the lenders don’t have to go through your entire detailed credit history report. One number tells it all.

Credit scores range from 300-850. This single number has an incredible influence on your chance to get loan for business or other purposes and yes, the lenders judge you using this number. The higher your credit score is means the more rates that you are going to get. And that’s why it is extremely important to monitor and manage your credit rating.

In other way, your credit rating reflects what is written on your credit report. It able to determine what you pay for auto financing and leasing, credit cards, mortgages, and insurance.

In fact having a low rating can hurt your loan options. You are evaluated by your credit rating every time you apply for getting loan or even when applying for insurance or a job. That’s why you should always be aware of your standing and don’t forget to monitor your credit rating by regularly asking for your credit report from the credit bureaus.

The best way to improve your credit rating is always paying your bills on time and avoid bankruptcy. Be patient as the rating will not improve just in 1-2 days and in fact sometimes it takes 6-7 years for negative information in your credit history to disappear. Keep in mind to get copies of your credit reports to make sure there are no mistakes or old information that should have been removed.

Do practice self-control and avoid unnecessary spending at all costs. And it can help you to improve your credit rating. And good credit rating helps you a lot in dealing with many things. And this is the importance of your credit rating.

                          

Credit is one of the important assets in doing financial management and essential for your business growth. However poor credit affects various things in your deals for example when you want to purchase a property, paying your bill or renting a car. In fact no creditor wants to go near a person with poor credit and this fact should be always keep in mind.

Credit problems could give you headache and even destroying your business reputation and your life. However there are also some ways on how to fix your credit problems so you can always find a nice exit out there.

The first thing to do is start saving money from now on. It is recommended to suspend any new loan or car insurance deal. Eliminate all credit inquiries as much as you could. The faster you can settle them the better. Besides that, make your payments on time. Make it as a habit. Pay your bills on time and in full payment. Pay more than the minimum payment for your credit card don’t ever get into any new debt. The most brilliant idea is to make a budget and implement it in your life.

The other idea of fixing your credit card problems is considering debt consolidation when choosing for a bank loan. Apply at your bank for a lower-interest consolidation loan if you have high-interest rate. Apply this and the your deal with the banks will be more easier for both of you and them. You also need to check your credit report for errors because sometimes credit report might contain errors and it affects you. Be patient as this might take longer time than you expect.

The other way is get counseling and advices from the related professionals. There are various organizations that can assist you with this type of problem but keep in mind that the service are very expensive. By the way you can get free service that you can rely and trust from any non-profit organization. The best way is to educate yourself from the beginning so you can do it for free.

Act now or never. Because credit problems can bring other problems to you.

                          

Choosing your credit card is not easy as you say it. Many Americans are in debt because they put themselves on more credit than they can handle or failed to used credit responsibly. In fact, there are various types of credit cards that you can choose. Understand what kind of card you are applying for before filling out the application form. Make sure you are applying for the right card that suits your need and finance situation.

There is no such a bad or good credit card to be applied as the function is to ease the customers for various purposes. If you are choosing a credit card for first time, find the one with features that match your needs and finance condition.

Before you apply for your first credit card, learn and look for what options that you have. This is to ensure you choose the right credit card by knowing what it offers for the sake of yourself. Don’t apply for more cards than you need, and don’t apply for the charge more than you can afford. Pay bills responsibly in time to maintain a good credit rating. It is a brilliant step to avoid interest charges by choosing a card that offers a grace period and paying the entire balance due each monthly and if you can’t pay the full balance, choose a card with the lowest interest rate before you regret until the end of your life.

You should know the amount of any fees and the terms under which the fees that you are applied. The most common types of fees include annual fee, late fee, and over-the-limit fee. Credit card companies several methods to calculate the outstanding balance. The method makes a big difference in the finance charge that you have to pay.

Nowadays consumers are presented with many of cards choices. You may prefer choosing a credit card with low interest rates or no annual fees, Gold Cards, Platinum Cards, and etc. If you about to use your credit card wisely and plan to carry forward outstanding balance every month, you should considering choosing a credit card terms that let you to pay less monthly interest.

Keep in mind that you have to consider various important things when choosing credit card for your own sake. If you choose your credit card wisely, you will save even more.