Life and politics from the Sunshine State's best city

Using prepaid credit cards for future solidity

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Positioning yourself for a home loan can be a detailed, tedious process that usually begins long before you attend open house viewings or start comparing paint swatches. First-time home buyers usually secure loans underwritten by a bank. Financial institutions require you to have a solid credit rating, so establishing yourself financially is the most important step there is in preparing for mortgage responsibilities. A negative or unstable credit history can drastically reduce a person’s chances of getting approval from a financial institution for a major purchase like a home.

Poor credit also diminishes your ability to get financing for purchasing cars or personal items. Organizations, including the government, have taken steps to help consumers safely establish their financial standing. Some of these steps include tax credits for first time home buyers and government restrictions to prevent another economic crisis.

Though life happens and unfortunate situations occur, financial hardships can almost instantly change credit ratings. Using credit cards to pay bills is not uncommon, but incurring overwhelming debt by doing so can be detrimental. People are using prepaid credit cards to change their approach to credit card usage and to rebuild bruised credit. Prepaid cards are an excellent way for the consumer to work toward debt-free living. You can pre-load major brand credit cards with a determined amount of cash and use those cards to satisfy debts and for personal spending.

The U.S. Government is a huge proponent of prepaid cards because of its method of debt-reduction. It has implemented legislation that protects the consumer from prepaid credit card fraud. The government has taken an active stand against companies that abuse consumers’ trust through false promises and guarantees consumers financial protection if they use prepaid credit cards issued by authorized dealers and institutions. Eliminating debt is the priority of the consumer, and protecting the customer while they do so is the interest of the government.

Peter Schorsch is the President of Extensive Enterprises and is the publisher of some of Florida’s most influential new media websites, including SaintPetersBlog.com, FloridaPolitics.com, ContextFlorida.com, and Sunburn, the morning read of what’s hot in Florida politics. SaintPetersBlog has for three years running been ranked by the Washington Post as the best state-based blog in Florida. In addition to his publishing efforts, Peter is a political consultant to several of the state’s largest governmental affairs and public relations firms. Peter lives in St. Petersburg with his wife, Michelle, and their daughter, Ella.

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