subject: Credit Cards To Build Credit - How a Prepaid Credit Card Can Help You Build Credit [print this page] Are you looking for a way to build your credit history? Whether you are just establishing your credit history, or even rebuilding your credit history, a prepaid credit card is a great way to put you on the path to getting that postive credit history you're looking for!
I Heard These Prepaid Credit Cards Don't Build credit, Is This True?
Great question! Contrary to what you may have heard if you are looking for credit cards to build credit then you should certainly consider a prepaid credit card. Many of the major companies have programs which will allow you to build credit!
Typically if you use the prepaid card to pay utility bills such as your rent, electric, cable, and/or telephone bills, they will report that back to PRBC (Payment Reporting Builds Credit) which is a national credit reporting agency! As always check with the particular company for details before applying for your prepaid card.
How Can This Help You out?
If you ever find yourself in the market to purchase a home, major associations like Freddie Mac and Fannie Mae use bill payment information to make decisions on home loans! In addition other major companies like auto loan, and insurance companies may start using this same bill payment information to comply with the Nation's Fair Housing and Fair Lending Laws.
Another option to obtain credit cards to build credit is to apply for a secured credit card. The main difference here is that you will need to provide collateral usually in the form of a savings account to secure the line of credit. Deposits typically range anywhere from $300 to $500 depending on the secured credit card issuer. This amount will also serve as your credit limit.
This however will get you on the path to building a strong credit profile because payment history is reported to all 3 major credit bureaus, so be sure to make those payments on time!
Everyone has to start somewhere, or in the case of anyone rebuilding their credit history, start over again. Remember a prepaid credit card is really a tool to help you achieve bigger and better things like qualifying for an auto loan, unsecured credit card or a home loan.
Credit Cards To Build Credit - How a Prepaid Credit Card Can Help You Build Credit
