I was told in the past that I could get a pre-paid credit card that you basically put your money into then use it like a regular credit card and it could help build your credit back up. Is there really anything like that? I just looked some stuff up and all I could find were pre-paid debit cards and I'm pretty sure that isn't what I'm looking for. If anyone knows anything, let me know. Thank you. :)
2007-10-09 07:50:47 · 7 answers · asked by K.A. 5 in Business & Finance ➔ Credit
For everyone saying to get a credit card... I can't. My credit is screwed. lol. That's why I was wondering about the credit card and the concept of it was that you put your own money in it but just like with a credit card, if you spend anything on it... you have to make payments each month. I dunno. So there is NOTHING like that?
2007-10-09 08:11:15 · update #1
Ok... secured card is what I was talking about... THANK YOU! My question is answered.
2007-10-09 08:12:29 · update #2
Just in case the other answers weren't clear a secured card is definitely what you are looking for and YES it will help you build your credit score back up if you make regular payments. I got mine through Bank of America about 18 months ago. I started with $300 deposited. Within a year they had sent me back my $300 and upped my credit limit to $800. My credit score increased over 100 points by using this card responsibly and using a department store credit card responsibly. Also, make sure you clean up any old debt hanging out from before. Good luck!
2007-10-09 10:18:49 · answer #1 · answered by jml167 4 · 0⤊ 0⤋
Prepaid credit cards are like gift cards. They will not help your credit.
You can try to get a secured card at your bank. You deposit $x and that's used as collateral for the credit card. Use the card and pay it off every month. After 6 months to a year, you can apply for a regular card.
2007-10-09 08:10:12 · answer #2 · answered by bdancer222 7 · 3⤊ 0⤋
Secure cards/Pre-paid credit cards won't build your credit, since you're not borrowing money - it's your own money.
A really easy way to build your credit is by paying your monthly bills on time - cell phone, cable, internet, etc. and sometimes even your rent. These all are reported to the credit bureau.
2007-10-09 09:25:55 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes this is true. The best thing for you to do is call Visa, Mastercard and ask about the services for rebuilding your credit and the avenue you would like to take.
In the end the best thing to do is apply for a credit card as many as you can. You will eventually get one with outrageous percentage rate and a very low credit limit. Use that and pay it in a timely manner. That will be the best way to rebuild your credit with the greatest impact.
Unfortunately you are going to have to pay the piper now, unless you have a spouse that will put you on one of their cards to help build up your credit.
2007-10-09 07:59:48 · answer #4 · answered by Anonymous · 0⤊ 3⤋
Good in theory, but not in practice. The American Credit system is based on an individual's timeliness, consistency, and completeness in paying their debts. The only way to legitimately rebuild your credit is by doing just that.
2007-10-09 07:57:56 · answer #5 · answered by Pundit 3 · 0⤊ 1⤋
"Prepaid" is not credit; even if it says "Visa" it's not backed by a loan.
There are no shortcuts. You need to get a credit card, maybe from a department store, and use it a little and pay it off and rebuild your history over time.
2007-10-09 07:56:59 · answer #6 · answered by Ted 7 · 1⤊ 1⤋
Yeah! You definitely can rebuild your credit that way. You can also try some higher interest rate credit cards. For both try Capital One, Providian, or Orchard. Just search for them on the web. Good luck.
2007-10-09 08:01:57 · answer #7 · answered by THE RESCUE LLAMA!!! 3 · 0⤊ 2⤋