Does a Prepaid Visa card give you credit?

Answer 1

Unfortunately most "prepaid" cards don't help you establish credit. There is one called Eufora that claims to help build credit, but I would be leery of this. Secured credit cards which are similar to prepaid cards in that money has to be placed on the cards for it to be used, but with secured credit cards, whatever's spent on the card has to be repaid just like a regular credit card. Secured credit cards require a deposit that's used as collateral to give a credit line of the same amount. For example you place a deposit of $250 as collateral, you get a $250 credit line. From there, it works like a regular credit card. You pay back what you happen to charge, the deposit sets the limit on how much you can charge. You can increase this limit by adding to the deposit which is actually better than a regular card because instead of being at the mercy of the credit card company to check your credit to increase the line to what they feel you should have, if you have some extra money, you can use that to boost the credit line. The best way to describe this card is a "build your own credit card" The downside is that you have to use your own money to do it, but as long as you don't charge a lot on it, pay on time, and boost the limit as often as possible, you could end up with a card that would be better than a lot of cards you would apply for and possibly get declined for and get the collateral deposit back with interest I posted a link to several secured credit card companies that you may want to take a look at

Hope this answer helps

Good Luck!

Answer 2

No, prepaid cards will not boost your credit score or create any credit history. The way to create or improve credit history is through the use of a secured credit card that reports to all three major credit agencies, such as the one Orchard Bank has to offer. Don't worry about the money that you'll have temporarily tied up in it...after having zero credit and a secured credit card, I applied for an unsecured credit card 1 1/2 months later and was approved.

Answer 3

There has always been a debate about which of the two viz. the prepaid card or the credit card is better? Though each one of them has a range of benefits and a huge fan following, but here we present a case for prepaid credit cards.

The rejection is non existent in case of prepaid credit cards, there are no credit checks, no employment verification, and approval is guaranteed.

With a bit of dilligent shopping and comparision of various prepaid credit card offers, it is not difficult to find a prepaid card with no annual fees, no late payment fees, no repayments, and no penalties whatsoever. So, the ownership costs of a prepaid card can be negligible.

With prepaid cards it is very easy to promote financial discipline. Since you can only spend what you have, there is no overspending, and hence no debts.

Some prepaid cards do report their use to major credit bureaus and hence are a good instrument to rebuild credit history. Apply online at: http://www.credit-card-gallery.com/PrePaid_Card.html

Answer 4

If you build a payment history, that builds up your credit score - of course, you have to pay on time. If you buy a pre-paid card the transactions are not considered to be payments so it doesn't affect your credit score.

But a prepaid card has some advantages. If you lose it, no one has access to your account the way they do with a debit or regular card. So they can be useful when traveling. Be sure to keep a separate record of the card numbers and where to phone if you do lose it; you can then have the balance reinstated on a new card and cancel the old number.

Answer 5

Is it a debit visa card that your balance goes down as you use it and then you have to refill the monies? If so, then no it does not help your credit. If you put 500 down and they give you a credit limit of 500 and then you have payments, then yes it would help your credit. If you need a cc with bad credit I would go to www.orchardbank.com

Answer 6

No it does not.

Secured credit cards are a great way to rebuild your credit. Most secured credit card companies require a deposit equal to the credit line your are seeking. Make sure they report your payment monthly to the major credit bureaus. Making your payments on time monthly will increase your credit rating. You will also get you deposit returned to you after one year, turning your secured credit card into a unsecured credit card.

Answer 7

Unfortunately no it does not. It gives you exactly what you put on it. It doesn't even help build your credit, and some of them charge you a fee for the card. It really was a pain in the butt, always having to check my balance to see how much was left. I would say just stick with the cash.

Answer 8

I don't think so. Anyone can pay cash and get one. No payments. Who would report the activity?

A secured credit card would give you credit. You deposit money and that's your credit limit. You make monthly payments.

Answer 9

No because you are using your own money. Here's a good source for credit cards.

Answer 10

NO