Wednesday, August 26th, 2009

How does a prepaid credit card help you build up credit?

credit help
blu_eyed_sexy asked:


I have read up about them alot and they say that they help you build up crdit, but they dont explain how. If all you do is add money to a card and then spend it, how can that help you build credit?

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3 Responses to “How does a prepaid credit card help you build up credit?”

catluva Says:
August 27th, 2009 at 9:17 pm

I think your mistaken. What you want is a secured credit card. That means you give the bank a deposit for the amount you want your credit limit to be. For example if you deposit $500 dollars your limit will be $500. Talk with a person at the bank you want the card with for example bank of america. And they will be happy to answer any questions you have.

Pablo Says:
August 28th, 2009 at 2:25 am

No, they don’t help your credit report because they are pre-paid. They aren’t a real credit card because you’re loading money onto it. They don’t report it to the credit bureaus. Many times they don’t even have your name on the card or your contact information. Some of the those pre-paids do but not all of them.

Matt J Says:
August 28th, 2009 at 10:27 pm

99% of the prepaids out there don’t report. But, a secured card acts just like a prepaid card, but they use your cash as collateral to see if you’ll pay off your bills. Try findsecuredcards online to see what I’m talking about.

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