Prepaid Credit Cards

Normally, when making an application for the usual kind of credit card, you undergo a credit search which will determine your credit limit. Once this transaction is validated by the credit card issuer, you will be able to use your credit card to make your purchases. And as is the custom, you will receive a credit card statement at the end of each month. If you pay off your outstanding balance every month, you will not be charged any interest. But if you fail to pay off the balance, then you’ll be obliged to pay interest on that very balance that has been carried forward to the following month.

But this is not the case with a prepaid Master Card which you load up with money when making an application. The beauty of having a prepaid Master Card is that a credit search is simply waived aside because your prepaid Master Card is already loaded with money. Not only this, but you don’t have to worry about clearing your outstanding balance and you won’t even receive a credit card statement at the end of each month.

Your prepaid Master Card, unlike the humble credit card, will be your magic wand that guarantees acceptance and opens doors at all participating outlets throughout the world. And as its name suggests, the Master Card will make you the master of your spending habits, knowing full well that you cannot go over the prepaid limit unless you top it up with more money.

As it is with a credit card, your prepaid Master Card dispenses with the idea of carrying large amounts of cash on you. And in the event of a theft, you can be rest assured that you are well protected because of your PIN number which no one should have access to.

If you are sold on the idea of acquiring a prepaid Master Card, here’s how you can procure one. You will have to pay an application fee to obtain a prepaid Master Card. Some prepaid Master Cards issuers may charge a monthly fee while some others may charge an annual fee. Each time you use your Master Card on your transactions, you will be levied a handling fee. Your prepaid Master Card can be topped up either online or through your bank. If you don’t have a bank account, then you can always top it up with ready cash, at Post Offices, shops and garages, throughout the UK.

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How Credit Scores Affect Mortgage Applications

With a good credit score an applicant will receive prompt response from many lenders, all of them offering low interest rates and low down payment options. The loan amount offered also may be high. On the contrary a low credit score would result in a lot of rejection from various mortgage financers. Because creditors wouldn’t come forward easily to give credit to individuals that have a history of difficulty in repaying existing loans. After all, creditors take risk when they finance mortgages against the credit history of a debtor. Naturally, they will wish to remain on the safe side and pick up less risky ones that have good credit histories. A good credit score means less chance of missing on payments and therefore less risky.

But there are some real risk takers that will come forward to finance mortgages for individuals with bad credit scores. They would charge high down payments and always high interest rates though. They may also fix additional charges for every little paper work and may charge high closing rates. The loan amount offered will also be considerably less. The individual with poor credit scores will not have much choice but to accept the terms and conditions as there are no other alternatives. This is a tight situation and to avoid this you must have a good credit score.

People with bad credit may fall in to the trap of ’secured loans’. Secured loans are the ones where the loan applicant offers an asset as collateral security. The lender becomes secure about the repayment of the loan and not the borrower. Securing a loan with bad credit score becomes easy only when the applicant is willing to offer some asset as collateral security. This again is a very dangerous situation where an individual runs the risk of losing his entire collateral asset in case of failing to pay the loan installments in time. An individual should always avoid such type of a loan.

Resort properties normally require large amounts of finance which a person with bad credit may find it difficult to obtain. So it is always advisable to keep your credit score high. Incase the credit score becomes low due to unavoidable financial reasons it can be improved upon. There is no need to lose hope simply because a person has a low credit score. If the property that he intends to buy has good equity he should go out and try to obtain finances for it. There are many sub prime lenders willing to offer their services.

For a review of your credit report as it relates to a mortgage loan and a consultation on the best loans available to you, give us a confidential, no obligation and no cost call.