Credit cards are a very popular way of obtaining credit easily, however, since they largely rely on a good credit history it can prove difficult to obtain one if you have experienced debt problems in the past.
Credit cards – what alternatives are there
Fortunately there are alternatives to credit cards but just what are they and what benefits do the likes of pre-paid debit cards, logbook loans and payday loans have for people with a bad credit score?
In this article we explore exactly what these financial products offer and why they may be a better solution for you…
Pre-paid Debit Cards
What are pre-paid debit cards and what are the benefits?
Pre-paid debit cards are a very recent, popular form of paying for products and services, similar to credit cards… with a significant difference.
A pre-paid debit card looks a lot like a credit card, and gives the user the ability to purchase a range of goods and services, however, the card holder must pre-load the card with their own money. This means that there is no real risk of running into debt as it has no credit or overdraft facility.
Like credit cards, Pre-paid debit cards can be used for the following:
- Draw cash out at ATMs all around the Globe
- Shop securely and safely on the internet
- Make train or flight reservations
- Book hotel rooms
- Buy groceries & fuel
- Share money with friends and family abroad
- Pay bills
- And a range of other services…
What are the benefits of logbook loans?
Logbook loans work by using your existing car as security against the loan, whilst you enjoy the benefit of still driving it. Typically, Logbook loan providers can lend anything between £500 – £50,000 which you then have to repay over an agreed time.
Logbook loans are usually paid out on the same day that you apply, which is perfect in an emergency. Logbook Loans can be used for any purpose, including:
- Unexpected expenses and bills
- Fuel or an urgent supermarket shop
- Help in starting your own business
- And a variety of other requirements…
What Are The Benefits Of Payday Loans?
Payday loans are an extremely useful alternative form of credit if you have a poor credit score.
Payday loans are a form of unsecured lending that are lent based on:
- You are in permanent work
- You are earning over £750 a month
- You are paid on a monthly basis
- That you have a valid bank account
- You are over the age of 18
So if you are looking for alternatives to credit card funding there are plenty of other products out there and plenty of companies that will still lend to you. Just make sure you repay any debt you accumulate back in a timely manner and this will help to improve your credit score and help you to take out mortgages and credit cards with a reasonable rate of interest.