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prepaid credit cards..

does anyone have one not through your bank and do they help build credit?

Answer Question

Asked by Anonymous at 2:43 PM on May. 4, 2009 in Money & Work

Answers (9)
  • my mom has one and no i dont think they help you build credit. i could be wrong though

    Answer by SThompson21 at 2:44 PM on May. 4, 2009

  • I do not believe they help build credit, what builds credit is paying something off over time, companies want to be able to see a history of you being able to make monthly payments on things.

    Answer by dedicatedrider at 2:46 PM on May. 4, 2009

  • If they are through a banking or credit issuer that reports to the credit bureaus then yes they can help and they help a lot. But you need to be very careful and get something in writting that details that they will report your payment history to the 3 major CB's meaning possitive payments and not just late payments.

    Answer by mamakirs at 2:50 PM on May. 4, 2009

  • my thought is if i had the money to prepay for a credit card i wouldnt need a credit card lol jmo and no they dont help your credit

    Answer by jodi205 at 2:51 PM on May. 4, 2009

  • You have to have credit to buy a home or a car. If you have no credit or bad credit a prepaid card is one of the few ways to build up that credit, Jodi. Get a clue! To OP mamkirs knows what she is talking about ignore the others. Another card to try is from orchard bank. It is not a prepaid card but they charge you so many fees you really don't have any available balance. The key is to not pay the balance all at once you want to make payments for several months to improve your credit. We used the orchard bank card to build up my SO's credit. Good luck

    Answer by Anonymous at 2:57 PM on May. 4, 2009

  • hey snon 2:57 you see the LOL? do you have a clue what that means i was jokin ding bat. and for your info my hubby and i are going through a situation with his credit and the creditor we talked to told us to get a credit card use it for small things like gas etc. and pay the balance off monthly so yes you to have to pay it off monthly for you to have a positive effect on your credit so hmmm yea get a clue. i can give you the number of the creditor we talked to so he can tell you himself if you like.

    Answer by jodi205 at 3:13 PM on May. 4, 2009

  • A prepaid debit card alone cannot help you build or rebuild credit because no credit is actually extended to you. In other words, you’re not borrowing any money from your debit card. Unlike a credit card, you need to put money on a debit card before you can use it. For instance, if you load $50 on your debit card, the most you can spend is $50 less any maintenance fees charged by your card issuer. Sounds like a checking account right? The rules are basically the same

    Answer by Anonymous at 3:19 PM on May. 4, 2009

  • There are some things to consider about prepaid credit cards. There are fees for loading and, sometimes, not loading a prepaid card. There may be limits for how much money you can put on the card, as well as limits on how much needs to stay on the card. Prepaid cards vary in the fees charged and other features. Also some cards do not get reported to the credit bureau, so if building credit is the goal then it is important to look for a card that reports to the credit bureaus. Shopping around and comparing different cards will help you find the best card deal.

    Answer by Anonymous at 3:22 PM on May. 4, 2009

  • Oh and Jodi, I work in loans. If you pay the balance in full every month then no it won't improve your credit. So whoever you got that advice from, I would find a second opinion. =)

    Answer by Anonymous at 3:45 PM on May. 4, 2009

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