Monthly Archives: September 2019

Student Credit Card Debt, How It Happens

Student credit card debt is a problem that will simply not go away all by itself. This problem will require effort from all sectors, family and parents, the student themselves, the issuers of plastic money, the educational agencies and the government. It should all start at home and I will tell you why in a moment.

By the time the students get to college, they are an easy market that can easily be tapped. There is the fantasy of easy money that the credit card companies are good at marketing. Then with the students, who are financially naive and expect high future earning, can easily fall trap into advertisements of easy money.

This is not the only factor that contributes to the vulnerabilities that lead to the student credit card debt. Another factor that contributes to the student credit card debt is that most of them have not had the necessary education to prepare them for the world of finance.

The way the colleges and universities invited the credit card issuers due to added revenue they receive from it also play a role to this problem. At least now most have policies that restrict the activities of the credit card companies. Some are even requiring classes where the students receive lessons on consumer and personal finances. The government is also trying to help by formulating some regulations that will limit fees of the issuers.

When they hit college, most students really do not have the know-how on credit card management and other stuff related to personal finances. This is where this website will be helpful for we will walk you through the ins and outs of personal finances and how to meet the pitfalls that could be lurking around the corners.

The “Consolidated Credit Counseling Services, Inc.” report that among high school students, only 15% take a class on personal finance which is a darn shame because there is a non-profit organization called the “Jump$tart Coalition for Personal Financial Literacy” that helps promote financialliteracy starting from kindergarten all the way to Grade 12.

This brings us to the problem where some parents really do not talk about finances with their kids or if they do, the kids do not listen. The kids just think this is one of those mumbo-jumbos created by the adult world to make their life miserable, not knowing that down the road they will truly be miserable if they do not listen.

Parents do have to talk to their kids about the rights and the corresponding responsibilities that come with owning a credit card. They really have to educate their kids in this regard to avoid the financial trap that await these kids in college. This should be done consistently starting as early as possible in a non-threatening way so the young will not get put off by the knowledge you will impart to them. Here are some tips:

First and foremost, be a good example by showing diligence in buying things wisely and paying promptly.
As soon as the child is mature enough, getting a credit card that you will co-sign with him can reap dividends later on. There are two schools of thought in this regard. Some experts say to do it as early as possible. Others say to wait till the third or fourth year of college which I do not accept as true because the students are inundated with credit card offers as soon as they arrive in college.
The credit card you co-sign should be one with no annual fee and with a low limit.
Talk to the child about the terms of agreement with the issuers like the interest rate on purchases and cash advances.
Have him write down the expenses and review these and the statement every month.
Discuss the finance charges if the balance is not paid in full like the interest, penalties, fees and other ramifications including the impact it will have on one’s credit report.

Discussion with the student should also involve some psychological aspects like resisting the lure of advertisements and free stuff. The free t-shirt that came with signing up for a credit card could cost one hundreds of dollars in the long run. Learning also about want and need will give one a sound perspective of money that will make them avoid the problems of student credit card debt.

Abstract: Student credit card debt is a problem that could extinguish the youthful high spirits placing them in such a disadvantage. This article will certainly have an appreciative audience for learning how it happens can hopefully prevent it from occurring. Expecting only zero commentary on this issue will only exacerbate the situation. Neither will neutral observation make the problem go away. So read this article and see how it happens and what can be done to improve the situation.

Bitcoin Evolution is Your Solution to Easy Investing in Digital Currency

If you could go back in time, and buy shares in the Coca-Cola Company when it went public in 1919, would you hesitate to do so? Back then, an initial share cost $40; with dividend reinvestment it would now be close to $10,000,00. That isten million dollarsfrom just one initial transaction. Of course you wouldn’t hesitate! All that money was made simply by investing early, and waiting for growth. The good news is that Bitcoin Evolution can be like the time machine you’ll never need, because the time to get in on bitcoin is right now.

You might think that digital currency can be confusing. After all, it’s all so new, without a real track record, how can you know it’s worth it? Remember, people said the same thing about Apple Computers, Ford’s Model T, and anything else that was unique and unproven. All you have to do is recognize the opportunity, and let Bitcoin Evolution do the rest for you.

Everyone knows the best way to make money is to let the money earn itself. Once you create an account, you won’t have to mine for bitcoins by opening up a server farm in your living room, or watch the market in real time trying to judge when to buy or sell; just make an account, select how much you want to initially invest, and the site will do the work for you. You can set up auto-trades when values get high, or sell the bitcoins that evolve from the ones you initially invested in. It’s making money without making you work. Also, it’s not just limited to bitcoins- many other types of digital currency are supported, so you might just be investing in the next type of digital currency to take off.

From its inception just ten years ago, when the value was basically zero, one bitcoin is now worth over $9000 today. With such exponential growth, whether you only want to invest a little (one month of latte money can definitely be put to better use!) or if you want to go big, bitcoin and digital currency have the potential to pay out for those with the foresight to invest early. You have the opportunity now to be on the smart side of history, so visit Bitcoin Evolution today for the easiest, wealthiest tomorrow.

High Risk Credit Card Processing Solutions

Credit Card Processing Solutions & High Risk Merchant Services!

Pharmacy Merchant Accounts

Accepting credit cards with a pharmacy merchant account can increase pharmacy sales potential by 75 million customers in the U.S.. Internet pharmacy credit card processing analysts estimate 9 out of 10 people use a credit card for their online pharmacy orders. Accepting credit cards with a pharmacy credit card processing account will increase your pharmacy sales !

Adult Merchant Accounts

An adult merchant account is the key to accepting credit cards. Without a real adult merchant account for internet adult site or adult product retail sales it’s very hard to compete. We provide both domestic and offshore adult credit card processing for adult sites and products. Contact us to apply for your own adult merchant account.!

Casino Merchant Accounts

With our Offshore Merchant Accounts, your casino or sports book will be able to accept credit cards from customers all around the world in realtime. High risk offshore merchant accounts and credit card processing for pharmacies, adult, casinos and any other legal high risk business. Our company specialises in offshore casino merchant accounts for Gaming Web Sites, we do offer several offshore merchant account solutions for other web sites including adult, telemarketing, travel and all high-volume, high-risk businesses.

Off shore Merchant Accounts and Offshore Credit Card Processing

We provide Off Shore Merchant Accounts. Set up a UK Merchant account for european credit card processing. Offshore merchant services and offshore credit card processing is available for offshore merchant account processing. We can provide off shore merchant accounts in 29 different countries so your options aren’t limited. We can also set up Canadian merchant accounts with very low rates.

High Risk Merchant Account and Credit Card Processing

The type of merchants that we often see classified as high risk merchants are merchants who are too successful. We get very high volume merchants every day who get told by their processing bank that their volume is too high and they can’t process any more. We help these types of high risk merchants every day and can obtain off shore credit card processing with no caps at low rates.

We negotiate with the banks for you

With the right connections, we quickly go to work for you to find the best possible merchant account for your business. This means you have a team of trusted merchant service professionals working to get you the best merchant account solution for your business!
Complete solutions with high approval rates

High risk credit card processing offers complete end-to-end solutions to accept credit cards, accept checks and much more! We provide both domestic merchant accounts, international merchant accounts. High risk merchant accounts are our specialty – and we get high approval rates for all businesses!

Small loans without credit checks get loans without following credit checks

Sudden inevitable ends might make life bitter. Yes, if you are a bad credit history holder and also limited income earner and urgent ends pop up in the month before the next payday for which you are not monetarily prepared then it becomes a challenging task. You instantly look for some cash to meet these ends. Ends such as medical bills, tuition fees, electricity bills, travel expenses etc. are few to be mentioned which might compel a person to seek for some urgent cash aid. In such situation the feasible way to find some instant cash is by considering the small loans without credit checks. Especially formulated for bad credit people to provide monetary aid these loans helps them to avail cash in the quickest way.

The processes of applying and approval are kept in a less time consuming way. However to be eligible for this loan scheme a bad credit profile holder has to fulfill the eligibility criteria which are mentioned below:

The applicant should be a permanent resident of UK The applicant should have an active and valid bank account The applicant should have attained the age of 18 years The applicant should be employed permanently in a firm

No credit checks are followed in this loan scheme and lenders offer the cash in a quick manner. The instant financial support is offered online so that applicant should not encounter the lengthy documentation process.

Like any other loan scheme, small loans without credit checks are offered with a minimum and maximum amount of 100 and 1500, respectively. These loans help bad creditors to meet short term ends and also the urgent demands in a hassle free manner. The repayment term of this loan is stretched to 14-30 days. But a borrower can extend the loan repayment term by informing the lender’s office whenever they confront any hurdles while repaying the loan amount.

Small loans without credit checks are unsecured loans. The short term loan is designed to meet short term ends and so they usually carry a slightly higher interest rate. For competitive rates the best part is to compare the loan quotes of different lenders. These loans help you to meet urgent needs like credit card bills, medical expenses, electricity bill, car repairing bill, grocery bill etc.

Smith Hennry is one among the popular experts providing their services for the loans. He is also working with different loan providing companies to design the best loans for the borrowers. If you have any queries about small loans, short term loans , bad credit loans

The Importance Of Paydex Score In Building Business Credit

You may already be familiar with your credit report and your FICO score. But if youre a new business owner, are you also understand the elements that make up your corporate credit? Do you know what Paydex means? This article discusses the basic points that you should know about business credit.

Your Paydex Score

Your Paydex Score is the equivalent of your FICO score. Dun & Bradstreet a major business credit bureau, uses this method of calculation to measure a businesss credit. Once youve registered with D & B and you have received your D&B number, your financial dealings with creditors and other businesses will be reflected in your business credit report. When you obtain a copy of your credit report from D&B, part of the report includes your Paydex score.

A Paydex score ranges from 0-100, with 90 and above considered as excellent, 80 as good or acceptable, and 70 and below indicates a poor rating. Just as individuals aim for a high FICO score, business owners also want to reach a high Paydex score and maintain an excellent standing.

How to Raise Your Paydex Score

How do you achieve a high Paydex score? Timeliness of payment plays a vital role in how your business credit score is calculated. Of course, the best way to achieve an outstanding score is to always submit your payments on time. If you can pay your bills earlier than your due date, then the better it would be for your business credit.

Would occasional late payments affect your score? Yes. In fact, even a single late payment can pull down your score by a point or two. Nevertheless, if your average score is around 95 or more, falling one or 2 points down would bring you to a score of 93 which is still considered as an excellent rating. On the other hand, if your average score happens to be 82 flat and youve lost 2 points because of occasional late payments, then that would bring your total score down to 79 which can be considered as a poor rating.

Thus, as much as possible, it is crucial to be on time in submitting your payments to all your creditors. What if you cant afford to pay all your creditors on time? It would be better to pay off your highest bill first to lessen the impact on your credit score.

Using Your Paydex Score to Get a Business Credit Card

Obviously, a high Paydex Score makes you an ideal client for banks and lenders while a low score makes you a high-risk borrower in the eyes of creditors. It is interesting to note that the best business credit cards in the market always require good to excellent credit.

However, if you have a poor business credit, you may consider getting a secured business credit card as a tool to raise your Paydex score. Understandably, a bad credit business credit card would have higher interest rates and lower credit limit than credit cards that require good credit. Nevertheless, by using your credit card account and paying your bills on time, you can make an improvement in your score within just a few months. Find a credit card that would report your payments to the major business credit bureaus as it is the only way you can raise your Paydex score. Eventually, you can ask your credit card issuer to upgrade your account once youve raised your credit score.

Debit & Credit Card Processing In Your Dental Practice Are You Playing Your Cards Right

Making significant changes for your practice doesnt always have to take up valuable time. Switching card processing providers, for example, can prove to be an extremely beneficial exercise for both your practice and your patients. BDA Plus has put together a case study highlighting the benefits of switching from typical bank rates to the exclusive card processing services available to you as a BDA member.
Streamline introduction
One of the major advantages of arranging your card processing facilities through BDA Plus is that we have negotiated exclusive rates from Streamline (part of RBS WorldPay), the leading provider of merchant accounts in Europe*. Switching providers is actually a lot simpler than it sounds. The process usually takes around three to four weeks to complete, and does not require the need to disrupt your practices schedule in any way.

There are various options available to suit every practices needs. As an example of rates, looking at a typical practice with an annual credit card turnover of less than 100,000, the following demonstrates our exclusive rates for BDA members:

Maestro & Solo- 16p per transaction
VISA Debit & VISA Electron – 17p per transaction
VISA Credit Card – 1.21% per transaction
Master Card – 1.24% per transaction
Commercial Cards – 1.76% per transaction

If your credit card turnover exceeds 100,000, percentage based rates can be lowered by 0.02%, and by a further 0.04% should your credit card turnover exceed 250,000.

A standard payment terminal is extremely well priced at just 10 per month (excluding VAT), allowing speedy and efficient services from a simple, user- friendly terminal. For those looking for something a little more hands free, a wireless Bluetooth operated terminal is also available, priced at just 18.95 per month (excluding VAT).
The costs of switching to Streamline are minimal, with only an initial one-off payment of 25 (excluding VAT) being charged in order to create a Streamline account and set up the necessary rental and support services.

To demonstrate just how much your practice can save, we would like to use a typical client switchover as an example. As a BDA member, our client was eager to find services that would not only assist her practice, but would also benefit her patients. Having used his previous providers for the past four years, our client thought it was time to review her card processing facilities. During an average month, the practice has a credit card turnover of 5,600 and processes approximately 125 debit card transactions. The following list illustrates how much was saved during the year:

Clients savings

Typical Rates

Credit Card charge – 1.8%
Annual Credit Card cost – 1209.60
Debit Card charge – 0.250
Annual Debit Card cost – 375
Monthly Terminal lease (inc. VAT) – 21.15
Annual Terminal cost – 253.80
Total Annual cost – 1838.40

BDA Plus Rates

Credit Card charge – 1.21%
Annual Credit Card cost – 813.12
Debit Card charge – 0.17
Annual Debit Card cost – 255
Monthly Terminal lease (inc. VAT) – 11.75
Annual Terminal cost – 141
Total Annual cost – 1209.12

Total Annual BDA Plus Savings – 629.28

In total, an annual saving of approximately 629.28 was gained, leading to an average saving of 52.44 per month. When you add everything up, the savings gained through these preferential rates alone could pay for your BDA membership, to name but one benefit.

The Process

The process itself is very simple; after receiving an initial enquiry, a member of the BDA Plus team will contact you in order to discuss our rates and to make sure that you are aware of all possible options available.

An application form is promptly sent to you, which serves as a thorough assessment, so that Streamline can ensure that their services correspond with your needs. On completion, the form is returned to BDA Plus, checked and then forwarded to Streamline. From there onwards, Streamline take control of the application, and finalize the set up. An engineer will be promptly sent to your practice to install the new debit and credit card processing facility, which should only take around twenty minutes to complete.

Switching to our debit and credit card processing in your dental practice is only one example of using BDA Plus to get more from your membership. Here at BDA Plus, we are dedicated to providing Insurance and Financial Services tailored to the needs of the dental professional. We can provide your practice with a suite of services specifically designed for the needs of you and your practice, offering additional preferential rates for BDA members. Whether looking for Practice Insurance, Practice Overheads Protection or Commercial Finance, we are confident that our services will meet the needs of your practice. We are also proud to offer you a variety of products designed to protect your personal finances too, including Home Insurance, Income Protection and Retirement Planning.

We are always happy to provide guidance to find the best solutions for you and your practice. If you would like further advice on any aspect of this article, or would like to discuss the best financial options open to you, please do not hesitate to contact us on 0845 130 1366.


Lloyd & Whyte Ltd is authorised and regulated by the Financial Services Authority.

BDA Plus is a trading name of Lloyd & Whyte Ltd used under license from the British Dental Association.
Calls may be recorded for use in quality management, training and customer support.

The Pros And Cons Of Credit Card Debt Settlement

Are you a self-confessed shopaholic who buys anything and everything that you get your shopping addicted hands on? Such thoughtless and impulsive buying will most likely result in the accumulation of a bunch of junk that will simply collect dust. Can you even remember that silk scarf you just had to have and since it was a virtual steal at 50% off you just had to buy it? Where is it now and how many times have you actually worn it? Is it still fashionable?

If you’re like most people, chances are you’ll have to rummage through bins and bins of collected shopping “litter” which you’ve accumulated through the years, just to be able to see that once precious scarf. You may still be in a state of denial by saying “Fashion goes round and round and that scarf will have its shining moment once again.”

Unfortunately, many people fall into this mode of impulsive buying that they really can’t afford and before they realize it they become saddled with debt. If you fall into this category, you’ll soon need to learn a thing or two about debt settlement which can assist you in extracting yourself out of that self-imposed state of financial trauma and begin to start rebuilding your life bit by bit. And the time to start is now! Of course, you have to be honest with yourself, admit that you’ve got a serious debt problem and then humble yourself enough to seek the help you need to pull yourself out of this devastating ordeal.

First things first, a lot of people may actually think that they only have a few choices when it comes to solving their debt problems. The two most common options for those who are burdened with enormous amounts of debt are either to consider declaring bankruptcy or debt consolidation. Unfortunately, if you take the easy way out by declaring bankruptcy, it will leave an embarrassing and indelible mark on your credit report for up to 7 years, which will result in higher interest rates, less credit and if you try do qualify for a mortgage (some lenders do give loans immediately after bankruptcy) you will most likely not be able to get a loan to cover 100% of the financing you need. Normally, an 80% first mortgage and if you can get a second mortgage, it will be at much higher interest rate and probably only 10% of the loan value for a total of 90% of the loan to value and you’ll have to come up with 10% down.

Clearly, everything will come with a higher price for a period of time but you’ll have to weigh that with a straight debt consolidation solution in which you pay off your debt. However, in many cases you can negotiate with the collection agency and it’s realistic to get 25% – 50% of the debt forgiven, if you can show that you’ll continue to make monthly payments until the remainder is paid off.

Many of the debt settlement / debt consolidation companies were actually established by the credit card companies themselves. Why, you ask… because it only makes sense for the credit card companies to help you pay off your debt because they can either forgive some of the debt or reduce the interest rates, lower the monthly minimum payment requirements or some combination and get paid a portion of the money owed or receive nothing if you declare bankruptcy. What would you do if you were in their shoes? The answer is obvious. This is why a lot of people who have been saddled with debt are now being offered debt settlement. Of course, not all debt consolidation service companies are owned by credit card companies but many are.

Some groups offer debt settlement programs through arbitration. The “selling point” when it comes to these kinds of solutions is that debt settlement will actually help end your debt problems, without having to go through declaring bankruptcy, without having to pay overcharged debt consolidation program fees as well as helping you avoid getting caught in the debt consolidation trap that a lot of people have fallen victim to.

In many cases, what the organizations do that offer debt settlement services is negotiate your debt down with the collection agencies that have been given your case. I would encourage you to contact a number of companies to ensure you feel comfortable and that you are working with a quality company that doesn’t over-charge you for their services.

On the other hand, if you would really like to save money, which only makes sense since you are already heavily in debt… then negotiate with the collection agency yourself. It’s not difficult, rather than getting upset when you get called night after night simply tell the collection agency rep that you would like to pay off your debt but you can only do it if you can get it reduced and then ask them that you would like to get the debt you owe reduced by 50% – 60%, even 75% and ask them to see what they can do. Ask for a lot up front because as in any negotiation there’s always a give and take. Believe me, they will go to work for you and your offer will be seriously considered because they only get paid when they collect and it’s better to get their percentage on a smaller amount than “diddly squat” on the full amount.

Of course, you’ll have to decide what route you want to take… bankruptcy versus debt settlement but shop around and realize that you do have options. The internet is full of companies offering their bankruptcy or debt settlement services, but be careful and don’t let them push you around and never work with anyone you don’t feel 100 percent comfortable with.

Data Gathering And Cascading Metrics In Busy Business Settings

As a businessman, there are aspects in your company that you view as the most important things. These are those that you believe can contribute in the success of the company. Metrics are often used to measure the efficiency of your business when aligned with the goals that you have defined beforehand. As effective and useful as your metrics may seem, there are times when you will doubt its functionality in the business. One of the main reasons to this is because you did not choose to perform the method of cascading metrics.

Now, if you are wondering what cascading metrics approach is, here is the answer: this is a simple way of communicating with all the people in your company about the efficiency and the use of the metrics. You will notify them of what your companys goals are and in line with those objectives, you will give them the metrics that will help them see just how they can achieve those goals. Metrics are like progress bars that will aid them in seeing how far they still have to work in order to achieve a specific objective.

Most of the time, the managers of the company keep the data and the metrics in their offices. They do not allow the metrics to flow into the whole enterprise. Cascading metrics is very useful as it is the solution to communication problems. One of the most measured aspects in the business is the ROI or the return on investment. The cash that you have spent on a particular activity, process or system should go back to your companys vault since this is what having a business is about. C-level executives consider ROI as the most important concern in their business and thus, they need to measure this in the right way so that they will know what they should do when it comes to making decisions in this area.

Another issue that is often measured is the accountability. Key performance indicators have to be chosen carefully in order for a businessman to see how his companys accountability. Aside from this, finance and the internal operations are among the most measured aspects in the business. Now, there are common misconceptions about the creation of metrics. In fact, this is the process that is considered as the most difficult part. In this stage, you will have to identify the essentials in your business without bringing up the other areas that are usually thought of as influential.

Remember to measure the soft numbers instead of the hard ones. This means that you will have to measure those that can bring about hard results. An example of this is when you want to measure the ROI. The return on investment will be much higher if you make sure that your employees and your customers are happy. Therefore, you should be able to gauge the perceptions of the people instead of focusing on the financial numbers themselves. With the aid of the balanced scorecard, cascading metrics will help you gain good financial results without neglecting the other parts of your business.

The Top Ten Characteristics Of The Best Credit Card For You

Credit cards are fast replacing cash as currency, as they offer convenience on purchases. Large amounts of cash can make you susceptible to robbery. An ATM card, on the other hand, may be useless if there is no ATM close by. Credit cards can allow you to make emergency purchases, buy the things that you want, and pay the debt later.

What is the best credit card for you? Before you scout for a credit card to meet your needs and wants, take note of the following characteristics of the best credit card.

1.The best credit card for you will have a credit limit equal to about four times the amount you can afford to pay per month. To determine this, you will need to look at your spending habits, as well as your bank account. Despite the fact that a lower credit limit will impair your freedom to spend, it can also discipline you into better spending habits.

2.The best credit card for you will have cash back guarantee incentives. A cash back incentive simply means that you will be getting about one percent back off your purchases of certain goods or services. Such cash back incentives can be useful when you purchase expensive items such as luxury goods or gas, or if you pay the electricity bill.

3.The best credit card for you will offer rewards incentives. For every specified amount of purchase, you can be awarded points. These points can be accumulated and, at certain amounts, can entitle you to gifts. Such gifts may include certificates for discounts at credit card partner establishments, appliances, or even trips abroad.

4.The best credit card for you will translate your rewards points to airline frequent flyer miles. This can be advantageous if you travel and spend a lot the more airline miles you accumulate, the more chances you have of availing of free trips.

5.The best credit card for you will impose reasonable interest rates on unpaid credit card debts. This can be important if you need to spend a lot, but earn a moderate to a low salary.

6.The best credit card for you will have a longer grace period for you to settle your payment.

7.The best credit card for you will have no annual fees on the first year of use and, if you must pay annual fees for the years thereafter, these annual fees will be much lower. In fact, some credit card companies waive the annual fee for clients who are in good credit standing.

8.The best credit card for you will have incentives the moment you get your hands on the credit card. Some credit cards can offer gifts by virtue of their being used for the first time. Such gifts may include gift certificates, discounts at restaurants, or even a free pair of shoes!

9.The best credit card for you will have twenty four hour customer service support, and will have a secure server that will ensure that your identity and credit card information are not stolen. This is important nowadays, where credit card theft runs rampant, online or offline.

10.The best credit card for you will be one that you can use in as many establishments as possible, and in as many countries as possible. The wider the reach of your credit card, the easier it will be to use, and the easier it will be for you to buy the goods and services that you like.

In short, the best credit card is one that meets your needs and wants even before you recognize what they are. When you finally get your credit card, use it wisely, and you will certainly enjoy its advantages.

Reasons Why A Secured Visa Credit Card Is Better Than Prepaid

Many people assume that a prepaid Visa card is the same thing as a secured Visa credit card. This actually couldn’t be further from the truth. A prepaid Visa credit card is significantly different from a secured Visa credit card. Here are five reasons why.

1. The Credit Factor

If you’re trying to decide between a prepaid credit card or a secured Visa credit card, chances are that your credit isn’t exactly spotless. If you want to improve your credit rating, understanding the differences between prepaid cards and secured cards is critical.

If you opt for a prepaid credit card, you’re not doing anything to improve your credit rating. This is because prepaid credit cards typically aren’t reported to the credit bureaus. On the other hand, when you are issued a secured Visa credit card, your account activity is reported to the credit bureaus, improving your credit.

By managing your secured Visa credit card properly, you aren’t just gaining access to a credit card and the benefits that go along with carrying one, but you’re also increasing your credit score and rebuilding your credit history.

2. The Money Factor

There is one thing that prepaid credit cards and secured credit cards have in common. Whether you open a secured credit card or a prepaid credit card, you’re going to have to send in money. That, however, is where the similarity ends.

When you give money to a prepaid credit card company, they credit the amount to your prepaid card and then you can spend the money you’ve put on it. That’s it — end of story. When all the money is spent, you either add more or throw the card away.

When you send in money to open your secured Visa credit card account, the money is put into a savings account and you earn interest on that account. Then the credit card company extends you a revolving line of credit equal to the amount of that account.

3. Monthly Statements

When it comes to a prepaid credit card, there aren’t monthly statements to pay. With a secured Visa credit card, however, you receive a monthly statement that must be paid on time (or it will affect your credit). You will have the choice of paying the minimum amount due, the balance in full or anything in between. This activity is then reported to the credit bureaus.

4. Hotels and Cars

Nowadays when you check into a hotel they ask you whether or not you are using a prepaid credit card and many hotels and car rental companies won’t even accept prepaid credit cards as a form of payment. However, there is nothing differentiating an unsecured credit card from a secured Visa credit card, which means you can use your secured card to book hotels and car rentals without any hassle.

5. Moving Forward

If you carry a prepaid credit card, there will never be a chance of it evolving to an unsecured credit card. However, it is not uncommon for a secured Visa credit card to evolve into an unsecured credit card once you have established a payment history and have proven that you can be trusted with the card.

So while a prepaid credit card may look a bit like a secured Visa credit card, the fact remains that they are very different in many ways. If you want to rebuild your credit, then a secured Visa credit card is really the only way to go.