I have no credit will a prepaid credit card help me build some ?

Answer 1

No it won't but here are some things that will:

How to Start Building Credit

It can be easy to qualify for credit if you have a good credit history, but what if you have never used credit before? If you are just starting out, have always paid in cash and don’t have any real assets or accounts in your name, it can be difficult to start building a credit history. If you apply for a credit card now, there’s a good chance you’ll be denied. “How am I supposed to establish a credit history if I can’t get approved for a credit card”?

Here’s how:

Open up a checking and savings account in your name. As time goes on, your account activity will demonstrate that you can handle money responsibly, provided that you do handle this money responsibly. Avoid bouncing checks and regularly contribute to your savings account. As these accounts do not require credit to open, they will not help you to build credit. Lenders do see the accounts as a sign of stability and will take them into consideration when determining whether or not to extend you credit. Also, if you develop a positive relationship with your bank, they may be more willing to approve you for a credit card or loan.

Apply for a secured credit card. A secured card is easier to get than regular credit cards. A secured card is one in which you deposit money with a lender and this amount gets applied to your card. Your credit limit is capped at the amount you decide to deposit from a few hundred dollars to several thousand dollars. In other words, you are guaranteeing your line of credit with your deposit. Many well known institutions offer these secured cards like Key Federal, Bank One, Chase Manhattan Bank USA and others. Once you have used this card for 12 months or more and built a solid credit history, you can apply for a regular credit card. Or you can talk to your secured card issuer to see if you can convert your secured card to a regular one. Just make sure that the card issuer reports to a credit bureau. If they don’t, the card won’t help you establish a good credit history. (Please be aware that you may have to pay application and processing fees for a secured card and these cards typically have annual fees along with higher interest rates than unsecured cards. Before you apply, be sure to get all the information).

Another way to establish credit is to apply for a store issued credit card or a gas card. These cards are generally easier to obtain rather than your standard bank issued credit card, but be aware that they often have a high interest rate!

Apply for a credit card while you are a college student. Lenders are willing to take risks on college students, according to Gerri Detweiler, author of The Ultimate Credit Handbook, because they feel parents are still willing to help their kids out if they get into financial trouble while they are in school, than after they graduate. But for now, just open one or two. Opening up a whole bunch of credit accounts in a short period of time can make you look too risky.

Once you’ve used credit cards responsibly for a year or so, consider applying for an installment loan from your bank. Keep the first one small and the duration short like 1-2 years. Doing this will give you a mix of different types of credit which is good for your credit score.

Now the ball is rolling and you are on your way to establishing a credit history. Remember, you want your credit history to be a good one so…

•Make sure you pay all of your bills on time.
•Don’t charge more than you can pay off in a month.
•Always pay at least the minimum monthly payment and whenever possible pay more than the minimum.
•Don’t charge more than 50% of the card’s limit.

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Answer 2

No. A prepaid card is like a gift card. They won't help your credit score at all.

You could try getting a secured credit card from your bank. You deposit $x which is used as collateral for the credit card. Charge on the card and pay if off in full every month. After 6 months or so you should qualify for a regular credit card.

Answer 3

No, I don't think so, since you don't have to give your social security number. To build credit a good way is to get a credit card. You can use it like once a month to fill up your gas tank and not use it any other time if you want. As long as you make regular payments and always pay on time, that will build your credit. Watch out; don't charge more on your card than you have money to pay. Credit-card debt can be very expensive and ends up consuming some people.

Answer 4

Likely no.

What you're looking for is something called a 'secured' card. Typically, the word prepaid means without a credit check and using your own money. While a secured card is similar, and forces you to back the credit with a deposit, it typically requires a credit check and reports to the credit reporting agencies. A prepaid card does not report.

Once a card has reported to the agencies with good payment history for 6 months or so you should seek out an unsecured, or "regular," credit card.

Answer 5

Secured credit card are special type of credit cards which have some collateral attached with them. Generally the collateral is a bank account or some deposit. Secured credit cards are simply great for those who have less than perfect credit and those who want to start building their credit history.

Secured credit cards generally have an application fee attached with them, so if you want to apply for a secured credit card you will have to shell out some money upfront. In addition to this application fees the secured credit cards have annual fees and relatively high interest rates.

Each secured credit card comes with a credit limit equal to the amount deposited in the credit card. However the secured credit card issuing companies deduct their fees from your deposit as soon as you start using your credit card. Let us look into this point a little further. Supposed you have deposited a sum of $300 in your secured credit card and the secured credit card has an annual fee of $120 the credit card issuing company will deduct this annual fee from your deposit and effectively you will have a credit limit of $180 ($300 - $120)with you initially.

The secured credit card companies report to the three major credit bureaus and hence every spending and repayment on your credit card gets recorded and reflects in your credit report. If you use the secured credit card judiciously, things will be great for your credit history. Though the credit limit associated with the secured credit cards seem pretty low initially, but as the confidence of credit card companies grow on you and your credit rating improves you will see an increase in these credit limits. The secured credit card company might charge some fee for improving your credit limits. Apply online for a best secured credit card at: http://www.credit-card-gallery.com/Guaranteed_Approval.html

Answer 6

Do not ever get a credit card if you can't pay it in full when you get the bill in the mail. This is how people destroy credit. 52% pay in full each month. They are the ones with top scores. Be one of them The federal government stepped in in February of 2010 and made new regulations that make it virtually impossible for anyone under 21 to get credit cards. They were charging things they could not afford to pay in full and carrying balances. This not only can ruin credit. It can devastate your life. Employers check, so do landlords and car insurance companies. Please learn about credit and how to make it work for you. And not how to become a slave to paying interest and making banks filthy rich

Answer 7

Check out this site http://www.squidoo.com/best-prepaid-credit-cards/ They have all the information you could need on prepaid credit/debit cards.

Answer 8

No! By definition a "prepaid" card is not credit.

Answer 9

No. In order to build credit, you have to be given the responsibility of spending (then paying back) someone ELSE'S money. If you prepay a credit card, you are merely using your own money that you already gave them.

Answer 10

no