I have a theory on this new amerx prepaid card. I honestly think they are doing this to see what your spending habits are and how often you load money to the card. Think about it you have average credit instead of taking a risk of issuing out a charge card they want to see what you are spending your money on compared to how much your income is. If you make 3000 a month and you are spending all of your money on groceries and bills and you have credit card with a high balance. Why would they lend you? (Why else would they want your social?
So they could run soft inquires to see how your credit is looking. And why spend use a credit card for average things like bills unless you live pay check to paycheck?) I think They want to see if you have a repetitive loading amount to possibly see how much your credit line will be. If you load 500 this month 25 next month and 0 the next month after then you are over the place you may not be prepared to have a charge card since most of what you use your card for is entertainment not groceries and bills hence why they want you use it for daily things like bills (they may think you may have an unsteady income if you loading your card like that and you supposed to be using it on bills.) I heard that amerx now have limits on their charge cards based on how much you spend over six months and they will decline the card afterward.
With that being said if you spend only 500 on entertainment or if you use majority of your income on bills then it might not be worth the effort of giving you a card. I know this seems like a catch 22 if you spend the entire 2500 balance/load limit on bills and entertainment then you might not get approved and if you put to little then you might not get approved. What I am doing I am going to load 2500 max pay various bills but not the entire amount small portions of it and then spend a little on entertainment. So I will gradually spend a max of 1000 dollars between paychecks.
Right after I spend the money I will load the card again with the 1000. To show I can pay the balance in full relatively quick without having a low balance. Since I cannot load the card because I reached my max I will then charge the card again next until my next my pay. I am still going to use my other credit card but I am going to keep the balances on them low.
Now that’s just for being offered a card I think you still have to have decent credit to be approved but then again why would they offer you a card and not approve you it kind of defeats the purpose of being offered a card.
