Do you have bad credit or no credit? Relax; you can rebuild your credit with a prepaid card.

Prepaid cards are not credit cards; you cannot spend more than the balance you have deposited and you will not be charged interest for your spending. The prepaid account will not be reported to the credit bureaus the same as a credit card.

Pros:

• Easy to get approved with no credit necessary

• The same fraud security as a regular credit card
  Easy to use for online or phone purchases

• Can withdraw cash from ATM machines
• Less expensive than check cashing services

Cons:

• Costly fees for opening and maintaining the account
• Fees for loading money on the account or using the card for purchases
• Although some report to credit bureaus, not all do
• Does not help improve your credit the same way a credit card or secured card would
• Much more expensive than opening a checking account and using an ATM card

Fees and charges can vary significantly between different prepaid credit card offers. Be sure to read the fee schedule for the prepaid credit card before you apply.

Nowadays, who doesn’t need extra ways to get cash?  Even if you’re one of the lucky Americans that have a great paying job- it seems there’s no guarantee anymore. In a recession, it’s always a good idea to put away extra money whenever you can.  Here are a few ways to get cash in addition to your day job:

1. Have a garage sale. Go through your old junk and get rid of anything you haven’t used in the last year. Odds are, if you haven’t used it in the last year- you probably won’t use it in the year to come. So, why have it hanging around when you could pocket the cash?

2. Checkout local job boards or websites like Craigslist for odd jobs. Sometimes people are willing to pay pretty decent money for quick and easy tasks- like moving furniture.

3. Consider taking on a part-time job on the weekends. You may be surprised at how many companies just need a little help for a few hours on the weekend.

Although these may seem trivial- the money will add up. And, if a rainy day should arise- you’ll be ready.

With bills piled high, most Americans find themselves scrambling at the end of each month trying to figure out how to pay them. And, with an unexpected car repair or medical bill, it can be outright overwhelming. In a tight situation, which is better: a credit card? Or, cash advance?

Generally, a credit card is a better way to go. The interest fees on a credit card are going to be lower than a cash advance. Even with “high-interest credit cards”, the rates will likely be lower than those of a cash advance. A personal loan will likely have interest rates upwards of 300%.

When you can, it’s a good idea to setup a savings account and put a little money away each month. That way, when unexpected bills arise, you’ll be prepared with money in the bank.

Personal loans are intended to be used as a last resort in a financial emergency. Unfortunately, in America, we have a hard time separating needs from wants. Here are 3 common mistakes consumers make:

1. Using a personal loan on gifts for yourself or others. Admittedly, there are a lot of social pressures to buy expensive gifts for friends and loved ones. Jeopardizing your credit isn’t worth the 10 minutes of fun your nephew will have playing with that several hundred dollar robot.

2. Taking out a payday advance if you cannot repay it by your next payday. Too many people take out a personal loan without thinking about how they’re going to repay it. Consequently, this loan could end up costing you twice as much as the original loan amount. You’re better off asking for a loan from a close friend or family member.

3. If you have good credit. A big mistake people make is taking out a payday loan with good credit! If you have good credit, it’s MUCH better to take out a small loan from your personal bank or local credit union.

Credit Union Locator

Rather than imposing on family or friends for the money, a payday loan may be the perfect solution. Or, is it? As tempting as it is, taking out a payday loan for a vacation isn’t a great idea. Payday loans have extremely high interest rates. And, consequently, that dream getaway will cost you far more than you imagined. Instead, it’s a much safer idea to put a little money away each month. Or, have a garage sale. Most of us have stuff laying around that we haven’t even looked at in years- let alone used. And just think- you’ll feel more organized and free of pesky clutter!

Payday loans are intended to be used as emergency loans, to tie you over until your next paycheck.

Ways to budget your money.

Basically, when a lender refers to you as “subprime”, he or she is actually saying that your credit history is flawed. In other words, you may have outstanding loans, credit card debt, or have been late on some of your bills. Nowadays, most people have less than perfect credit. So, don’t beat yourself up.

As a “subprime” borrower, be aware that you will likely be charged higher interest fees for any line of credit. Whether you’re applying for a credit card, personal loan, payday advance, or auto loan- higher interest rates will apply.

To avoid paying higher fees, the best thing to do is pay off your credit cards, repay any outstanding loans, and minimize any additional debt. Also, it’s a good idea to create a savings account and add to it each paycheck. That way, instead of financing big purchases, you may be able to pay cash-  saving you a lot of money in the long run.