A prepaid credit card account is opened by depositing money into that account, much in the same way you would make a deposit to open a checking or savings account. Once you have money in your account, you're issued a prepaid credit card that can be used anywhere one would use a regular credit card.
The best part of the prepaid credit card is that you can charge to your heart's content and you won't be in debt. The money is yours and once it's gone, you can't spend any more until you make another deposit. There are no bills and no interest charges. It's the same principle as using a debit card linked to a savings or checking account.
Managing a prepaid credit card is more like managing a checking or savings account than managing a credit card. You don’t have to worry about interest, finance charges, or late payments. What you have in your account is all you’re able to spend. There’s no revolving balance or due dates to think about.
Will It Help Rebuild Credit?
You can get a prepaid credit card regardless of your credit history. But, a prepaid credit card won’t help you establish or improve your credit. Using a prepaid credit card says nothing about your borrowing or repaying habits, so the card companies don’t report to the credit bureaus. If you have a prepaid credit card, it won’t appear on your credit report or influence your credit score.
If you’re looking to rebuild your credit, a secured credit card is a better option. It’s similar to a prepaid credit card in that you have to make a deposit to get the card. But, it’s actually a credit card. The deposit acts as collateral in case you don’t pay your credit card balance.
Guaranteed* Approval Credit Cards - No Credit, Bad Credit, No Problem. Prepaid Credit Cards. Also Great As Gift Cards!!!
These are pre-paid guaranteed approval credit cards. Meaning the credit limits equal the amount of money you put on the card and they provide you with instant approval.
If you have been turned down for a credit card before, these are the credit cards for you. In most cases there are no credit checks! All of these offers are from our sponsors on this page.
They also make great gift cards. As gift cards you can use them to just give the gift of cash or you can choose one of the cards with credit builder and help someone rebuild their credit!
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Consumer Credit Counseling Information, Debt Management Plan Information, Debt Settlement Plan information, Credit Counseling, Credit Score, Consumer Credit Counseling Service, CCCS, Bill Consolidation, Credit Repair, and Debt Consolidation is not advice, and we recommend you consult a licensed credit counseling agency, debt settlement attorney, and/or licensed debt management plan administrator in your state if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation.
