Canada Prepaid Credit Cards - Reasons To Accept
If you've been offered Canada prepaid credit cards but are hesitant to put up the money for the card, you should consider the reason most people opt to take out a prepaid credit card of any kind. After you fully understand that potential benefits, you might find that Canada prepaid credit cards are a good option that you should take advantage of. The major reason most people take out Canada prepaid credit cards is that they have negative marks on their credit history. If you're one of those people, you likely already know that getting a new credit card is difficult at best. If you are approved for a traditional credit card, you're probably going to be hit with incredibly high interest rates and the credit card company will typically offer you only a very limited line of credit. While you should take those as a consequence for your poor credit, you should also consider that Canada prepaid credit cards can help you start building a positive credit rating while saving you from the expense of too-high interest rates. Here's how the Canada prepaid credit cards work. You'll be asked to put up a specific amount of money - generally several hundred dollars. That money (minus any set up fees) are put into an account and you are issued a credit card. You can start using the credit card, but your line of credit will be limited by the amount of money you have in the account at any given time. At the end of the month, you're offered the option to pay the bill (or a minimum payment, depending on the Canadian prepaid credit cards you're using). If you pay on time, that payment will be noted on your credit report and you have just taken one step toward repairing your credit. If you don't pay on time, the credit card company will take the money from your account to meet your balance. While you can simply allow the credit card company to pull the money from your account, the potential for raising your credit rating is lost. Canada prepaid credit cards have another potential use for those people who want the convenience of credit cards without worrying about how they'll make the payments. By putting money into a prepaid credit card plan, you've essentially created a savings account toward future purchases. For those people who want money for specific expenditures, this could be a great way to save for a vacation or other larger purchase.
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