My husband and I are trying to increase his credit scores we are wanting to get a prepaid credit card instead of the discover card we have. Which are the best to help increase credit? any help would be great.
AFAIK, prepaid credit cards do not help your credit, since they aren't really credit extensions. BUT, I would love to be proven wrong on this!
I had read it somewhere and just wondered if it really does and which where best? but i guess it makes since that they don't.
This is just my 2 cents worth but I would open my own bank account with a new bank . Deposit $1000 on a secured CD or as much as possible . Take out a secured loan for 80% as most banks will only give you 80% of the money thats secured . Now you have positive ratings accumulating on your credit report . Also you are building a positive history with that bank, so in the future you will be able to achieve non secured loans thru that bank . If you need a prepaid card for online transactions and such I suggest green-dot as its only $4.95 to get with free first load , and $4.95 for each reload up to $2500 I believe . They USED to have a black card that reported to agencies but I do not know if it exists any longer . Hope this helps ...... Lawss .
I think she was referring to a secured card .Which they open a bank account and deposit your funds there to cover the balance if you miss payments . This is why I feel its better if a person opens their own and takes out a loan ,as most bank loans on $1,000 for a year is between 6-8% and a secured card usually has yearly fees and above 20% apr a rip off in my eyes , and taking advantage of people who just want to repair their credit and name . Lawss
A secured credit card is a great way to rebuild your credit. a few months ago my credit score was about 530. I got a secured credit card ($500) with Capital One and about 2 months later my Credit Score went up to 656. If you want a pre-paid credit card to pay bills and buy things online, I highly recommend netspend. there are NO monthly fees and to reload your card is only $1 whereas others are charging $5 to reload and have monthly fees. Another thing you can do to rebuild your credit, although more risky is to take out an auto loan that you are %200 sure you can pay. say a small loan for about $2,000 or $3,000. once you take out the loan, pay it back within 3 months and you'll see your score go up by about 100 points which is what Im doing now. *this worked for me even though I have my school loan ($30,000) which had to be closed and refinanced AND reflects as 7 negative items on my credit report !!
