Do prepaid credit cards help build credit?

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AceH
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Do prepaid credit cards help build credit?

Postby AceH » Fri May 18, 2012 8:07 pm

I have some regular credit cards but If I get a prepaid credit card to use for Internet purchases, would it help build my credit and become a part of my report?


DavidNY
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Postby DavidNY » Fri May 18, 2012 9:30 pm

No. You need a secured or unsecured credit card in order for it to appear on your credit report.

Crashem
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Postby Crashem » Fri May 18, 2012 11:46 pm

pre-paid card isn't issuing credit and therefore is not on your credit report and doesn't build credit history. There is some talk about including payments like rent etc. including potentially pre-paid cards in something called expanded FICO score.

But it is early and it will be a decade if it ever happens before this stuff is taken into account.

Most likely if it ever happens, they would use this expanded fico score to move people into the credit world, i.e. use this score to help give credit cards to people who don't have access today.
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Money card
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Postby Money card » Sat May 19, 2012 11:32 pm

DavidNY wrote:No. You need a secured or unsecured credit card in order for it to appear on your credit report.


hey Dave what is a prepaid credit card? what's the difference between a prepaid and an unsecured credit card?

Crashem
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Postby Crashem » Sun May 20, 2012 10:32 am

Money card wrote:hey Dave what is a prepaid credit card? what's the difference between a prepaid and an unsecured credit card?


No such thing as pre paid credit card if you get technical about it. Pre paid visa=yes . Pre paid credit card=no. Pre paid cards don't issue credit and therefore not credit cards. Was this the point? Or were you not aware what pre paid cards are?
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Postby Money card » Sun May 20, 2012 9:29 pm

it wasn't a thought, I've never heard of a prepaid credit card so when I saw this question I thought I would ask. there was certainly no point. more like I wasn't aware of what prepaid cards are.

Crashem
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Postby Crashem » Mon May 21, 2012 12:14 am

Basically like a gift card but you can reload and uses one of the major transaction networks (VISA/MC/AMEX etc.). Think of it like your ATM VISA Debit card, but instead of coming out of your bank account, it comes out of previous deposits you made to the card. Audience is primarily the unbanked of which there are a lot of in US.
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lennyj17
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Postby lennyj17 » Tue May 22, 2012 3:15 pm

Technically there's no such thing as a "Pre-Paid Credit Card".....They're just Debit Cards that aren't tied to checking accounts, so they will have no effect on your credit.



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