Poor credit history results from a failure to pay your debts to individual creditors, and if you apply for a mortgage you will find that this works against you. If you have a bad credit rating then you will almost certainly find your application being turned down, even though it may have been an emergency beyond your control that has brought about the situation.
Some people are unable to qualify for a credit card, while others deliberately steer clear in the fear of building up debts that they cannot meet. In all these situations a prepaid credit card is a godsend, because they no not require a credit check. For many people this is the answer to obtaining a mortgage because there is no credit history to work against them.
A prepaid credit card is not actually a credit card at all. It is a special category of debit card. While using a conventional debit card makes a withdrawal directly from your bank, a prepaid card withdraws funds from an account that you specifically set up and can access with the card. So, with a prepaid credit card you don’t need a bank account, a good credit score or a credit history of any kind, and you never incur debt because you are simply using money that you have already deposited.
A prepaid credit card is, therefore, indispensable as a means of obtaining a mortgage. The only disadvantage is that there will probably be certain fees which have to be paid.