You finally ridded yourself of all your credit card debts and canceled your credit cards for good. Great! However, you overlooked one important thing — you’ll need a credit card again at some point in your life. You’ll either need to make a purchase online, pay a bill over the phone, have alternate means to a bank account for options such as employer direct deposit, or you’ll just rather use a plastic card opposed to cash because it is a more protective way to carry money.

It’s always a good feeling when you clear your debt, either through the preferred method of paying off your debts or the negative method of bankruptcy. However you do so, it always feels good to get rid of that burden and start fresh. Many in these situations find themselves seeking credit cards shortly after they have cleared their debt — mostly in fear that without having at least one active credit card they are negatively impacting their credit by showing no credit history.

Being that you just cleared your debt, you are most likely being more cautious and not trying to find a card which has high fees associated with it. Additionally, if you filed bankruptcy then you do not have many options available to you and it is more important that you get a credit card which will not put you back in debt, but will allow you to rebuild your credit in a positive and efficient way. The best option for those who have recently cleared their debt is to apply for reloadable prepaid credit cards.

You are probably asking, what are reloadable prepaid credit cards? These types of credit cards are considered secured credit cards because you load the credit card with your own money. Loading the credit card with your own money will make the loan amount secured because you are not actually paying any of the money back. Instead you are using your own money. In turn this will ultimately make the debt on the credit card secured and there will be no fees, such as late fees, overdraft fees, or interest fees associated with the use of the credit card.

Reloadable prepaid credit cards can put you back into the financial race without putting you in debt. Many prepaid credit card offers provide credit builder services, this typically mean that your use of the credit card will be reported to the 3 major credit bureaus. Since you will only be allowed to spend the balance you loaded onto the card and be required to only pay a low monthly maintenance charge for the card (usually less than $10), then it is highly likely your usage of the card will be positively reported to the credit bureaus and will positively impact your credit history and scoring.

Applying for reloadable prepaid credit cards is the best option for those who have cleared their debt and need a credit card for credit rebuilding purposes. If you have bad credit, currently got out of debt, recently filed bankruptcy, or need a traditional credit card alternative then reloadable prepaid credit cards are just for you. In most cases, prepaid credit card offers are guaranteed approval. As more and more people come to the realization that living beyond their means is recipe for financial disaster they will seek alternative options for carrying plastic while remaining debt free, prepaid credit cards is a way to do just that. It’s time you apply for your reloadable prepaid credit card!