Ski Traveler

Credit Freedom

Credit freedom. It’s a phrase that, for most, evokes positive feelings. All too many Americans have, at times, felt crushed under the velvet-gloved fist of credit card rates, fees and late charges. However, aren’t credit cards a necessity these days? Some services, like hotel stays and rental cars, require credit cards, since they want protection if the consumer damages their asset. If you don’t want or can’t acquire a traditional credit card, you may want to consider procuring a prepaid credit card instead. Here are a couple facts about prepaid credit cards.

Usability

Referring to prepaid credit cards as “credit cards” is a bit of a misnomer; just because they are rectangular pieces of plastic doesn’t mean there is any credit involved. Instead, these cards are just repositories for the money you already have, and they provide a convenient way to use that money. With that in mind, it makes sense that these cards don’t report to the major -or any – credit agencies. They offer the advantage of being able to use a card at places like hotels that require a card with a certain amount of buying power available.

No Credit Check Required

If your credit is less than average (or even less than stellar) these days, you may not qualify for a traditional credit card. This can complicate life, since certain businesses do not accept cash. You can, however, use a prepaid credit card virtually wherever you’d use a traditional credit card, and prepaid cards do not require a credit check since there is no credit being given – you’re just spending the money you deposit onto the card. Therefore, they can reduce some of the inconvenience of not having a normal credit card.