2006-06-25 04:22:41 · 9 answers · asked by unknown11233 1 in Business & Finance ➔ Credit
Well a secured credit card does help build your score providing that they report to the 3 major credit beuros. Transunion, Exifax, and experian. If you look at the terms of service on the creidt card it will tell you if they report to the 3 major credit beuros. But do understand it will not raise it up alot after 6 months you will need to take out another secured credit card or try to get yourslef a credit card from a store. Like macy's, jcpenny, sears. What you do is get a card from them but something pretty cheap for like 20 bucks then pay it off right away and cut the card up do not cancel the card just cut the card up. after about 3 months the company will see you havent used your card and will offer you a credit limit increase.
2006-06-25 04:27:54 · answer #1 · answered by Lauren M 3 · 0⤊ 0⤋
Most prepaid credit cards do not report your payments to credit bureaus.
But there are some prepaid credit cards with a "creditbuilder" service. It is a service whereby the cardholder pays a monthly fee to "creditbuilder" , which is reported to the credit bureaus as an interest payment. As long these payments are made on time, (most prepaid cards will require automatic deductions from checking account), you should be able to build a credit history with a prepaid credit card.
Having said that, you are probably better of getting an unsecured or even a secured credit card. This is because, the fee that you pay for the "creditbuilder" comes out of your pocket (not for any purchases you put on the card).
Hence, if build or rebuild your credit, the most cost effective way is to get a secured credit card. However, if you wish to get a prepaid credit card, make sure it has a "creditbuilder" service.
2006-06-26 14:52:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No. It's like your ATM card, doesn't matter how many time you use it, it will never show up on your credit score. It's just like putting money into a bank, without the intrest. Beware though, if you do not use or put any money on that pre-paid card, they have the right to keep what ever you didnt use.
2006-06-25 04:26:37 · answer #3 · answered by TJ 2 · 0⤊ 0⤋
In Canada they do help build your credit rating as per a loan manager I spoke with a few months ago.
2006-06-25 04:27:35 · answer #4 · answered by all_yours_for_now_67 1 · 0⤊ 0⤋
Ask the company you are thinking of buying them from if they issue a report to a credit agency in your name. I am not sure how they could because you are basically using your own money that they are holding on to......
2006-06-25 04:28:11 · answer #5 · answered by momofboys 3 · 0⤊ 0⤋
nope, because even theo they have a load limit you donot have a charge limit which enables you to pay it off at the end of the month pre-paid basically means its allready paid for because you have to load the money so why not just pay in cash or check
2006-06-25 04:35:38 · answer #6 · answered by JOSH B 1 · 0⤊ 0⤋
if it is pre-paid credit card then yes
2006-06-25 04:28:06 · answer #7 · answered by matt0424 5 · 0⤊ 0⤋
Nope. They aren't linked to your credit score because you can buy then OTC without providing your name, SS#, etc.
2006-06-25 04:26:20 · answer #8 · answered by ashleylynnlynn 2 · 0⤊ 0⤋
No...anything that is prepaid is not credit. It will not be reported to any credit agency.
2006-06-25 04:26:43 · answer #9 · answered by 100% Chance of Pain 3 · 0⤊ 0⤋