The draft is a Target Credit Card Bad Credit

After a person's credit has been damaged, it can be quite a battle to rebuild it. Whether a person gets laid off, takes a pay cut, or simply ends up overextended, this can completely destroy a person's credit, even after a couple of months of being behind on bills.

The credit limits often start out low, but as a person pays diligently the credit limit will go back up. Many of these cards are also secured, meaning that a person has to pay a deposit in advance to guarantee funds. With the downturn of the economy back in 2008, most banks got even stricter on their score requirements for lending, and this created an even bigger obstacle for a person trying to rebuild their credit. 

Unfortunately, in most cases, a person needs credit in order to build credit. If a person's score is bad enough then it can be all but impossible for that person to finance an auto loan, a house, a personal loan, or even to open up a new card. The only way to improve credit is to show creditors of diligence and willingness to pay There are a few disadvantages, but when a person has to have a card designed for people with bad credit, these can be overlooked. While rebuilding credit can be quite a challenge, it is important to remember that there are options out there, even for people who have absolutely horrible credit ratings. 

Prepaid and Debit Cards, What's the Difference?

Finally, there is almost a 100% guaranteed approval for prepaid cards. Before we get to the differences, let's look at the similarities. That makes the reloadable prepaid cards more attractive to the unbanked or those who are unable to qualify for bank accounts The other difference between a debit and prepaid card is the possibility of overdraft. Reload-able prepaids can also be used at ATMs to withdraw money just like debit cards.

Another difference between the two is the issue of protection. Prepaid cards have a pre-loaded amount and the user is able to use only the amount of money loaded on the card. Most banks will refund money to a checking or savings account if the card was used fraudulently. Additionally, prepaid cards can be used to shop online and pay bills (as long as they are registered), similar to debit cards. Even with reloadable prepaids that require personal information like social security number and address, buyers are rarely denied as long as they provide the information requested. However, there are differences:

The first major difference between a prepaid and a debit card is that debit cards are linked to a bank account and draw money from that bank account to cover any charge made using the card. articleAlthough prepaid and debit cards function in similar ways, there are differences between the two and consumers should clearly understand the similarities and difference before choosing one over the other. You therefore have to keep an eye on your account to avoid getting caught up in this situation. Both cards can be used anywhere the issuer is accepted - whether Visa, American Express, Discover or MasterCard. In some cases, banks will charge multiple overdraft fees on overdrawn transactions occurring the same day.