CyberImpersonate

In this day and age where most people have easy access to a consumer credit, Americans are finding themselves sinking deeper and deeper into debt. Racking up a mere $10,000 in debt is now easy and all too common.

As the pressures of mountainous consumer debt become an issue for more and more people, the demand for legitimate and proven ways to rebuild your credit history is on the rise. The word “budget” conjures up extreme images of depriving oneself of the foods one likes or more extreme visions of starving oneself pop up. However, a proven formula for debt management and the rebuilding of personal credit and credit scores using a specific type of credit card dispels such visions.

Not only are these credit cards beneficial, they also provide for some consumers the only way out, especially if they’ve been denied a bank account or traditional credit card. Given that it takes two incomes in most households and a great majority of men and women both are in the workforce these days, there is hardly any time to prepare budgets and investigate ways to increase their credit scores.

Your journey to financial freedom starts with YOU taking the first step. Let us begin first, by evaluating the positives and negatives of both the secured and the pre-paid credit cards.

a.) Secured Credit Cards

Advantages- Having a secured credit card is a very easy and cost effective way to build your credit. These secured credit cards can also rebuild and improve damaged credit reports. They work exactly like a traditional credit card.

Negatives- The biggest setback for most people with the secure credit card, is that you have to deposit about $200-$275 in order to “secure” the account when you sign up. For most, this is a lot to ask. These cards also have a tendency to have additional fees (i.e. annual fees) and much higher interest rates (approximately 15% or greater). Even though these may seem like a lot, this card is probably the best choice for rebuilding credit.

b.) Pre-Paid Credit Cards

Advantages- Pre-Paid Credit Cards are a very useful tool, because they give you all of the flexibility and freedom of using your own money. They look, feel, and spend just like a real credit card; they can be used in any occasion that you would use a regular credit card. With these cards, you determine how much money you would like in the account by “loading” money, instead of the company offering you a credit limit based on your financial history. Almost everyone can be approved for this type of card, and yes….even if you’ve had a bad credit past.

Disadvantages- Think of an alternative option to rebuild or establish credit. This type of account does not report your payment history or account standings to the credit bureaus. If the creditor in which you receive the pre-paid card from does not report your account, then it will NOT improve your credit. Be sure to research and compare which pre-paid cards have the best benefits according to your needs.

Note that pre-paid credit cards may not be allowed in some situations. When you rent a car or book a hotel, some places will not allow use of a pre-paid card to hold car rentals or rooms. Be safe and call ahead of time to ask about the company’s policy on pre-paid cards before you’re halfway through the process.

Identity Theft Prevention and Identity Theft Protection are a necessity these days. Put a stop to Identity Theft with LifeLock. Life Lock can make sure identity theft never happens to you. To learn more about how to protect yourself and your loved ones from identity thieves, visit lifelock.com

Consumer advocate Linda Seamore is dedicated to educating people on how to protect their identity. After much research on identity theft and its victims, she found out about Life Lock , the industry leader in ID theft protection. Life Lock is a proactive identity theft protection agency. Visit www.LifeLock.com and discover how to protect yourself.