Can You Build Credit History with A Prepaid Card?

Posted on January 12, 2012 by Monique Tieman

In the past, prepaid credit cards or prepaid debit cards cannot be used as tools for rebuilding credit history. This is because issuers of prepaid cards do not report account activities to the credit bureaus. In order to build credit history and credit score, account activities must be reported to the three major credit reporting agencies – Equifax, Experian, TransUnion.

A popular tool which can be used to build credit history is a credit card. Credit card companies provide their cardholders with a credit line. By using a credit card and paying charges regularly, a person can build a solid credit standing more easily. Aside from acquiring revolving credit, people can also apply for loans such as car loan and mortgage, or an equity line of credit, to build credit history.

What about using a prepaid credit card? While a prepaid credit card can be used to pay bills and make purchases just like a regular credit card, a prepaid cardholder is not provided with a credit line. However, there are issuers of prepaid debit cards today that report to the major credit bureaus. These particular prepaid cards can be used to establish credit history or rebuild bad credit. Continue reading →

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What is the Difference Between Prepaid Cards and Store Cards?

Posted on January 9, 2012 by Monique Tieman

Prepaid credit cards and store cards are popular gift ideas these past few years.  Many people prefer to give these cards as presents especially during the holidays.  If you’re planning to give one to a couple of friends and loved ones this year, which card should you choose?

Prepaid credit cards can be used much like a regular credit card.  A prepaid card is recognized by a wide range of merchants that accept credit card payments.  This is particularly true for prepaid credit cards that bear the VISA and MasterCard logos.  Prepaid cards can also be used for payment at store locations and at online stores. Continue reading →

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Tips on Getting Your First Credit Card in 2012

Posted on January 2, 2012 by Monique Tieman

Are you planning to apply for your first credit card in 2012?  If yes, what are your possible choices?  Which credit card is best for you and how can you use it for your benefit?  Consider these tips:

Credit Card Options for First Timers

Secured Credit Card.  Anyone can acquire a secured credit card because approval is not based on credit history or credit score.  The basic requirement to get a secured card is the cash deposit which can range anywhere from $200 to $500.  The minimum required cash deposit depends on the issuer and the desired limit.  The credit line provided will be based on the amount of the security deposit so if you need a higher limit, be prepared to submit a larger deposit as well. Continue reading →

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How to Choose the Right Prepaid Credit Card for the Holidays

Posted on December 29, 2011 by Monique Tieman

If you need to use a credit card this holiday season but cannot get approved for a regular credit card, a prepaid card can be a good option.  Nevertheless, some prepaid credit cards are notorious for their high fees so you want to make sure that you will make the right choice.

With so many prepaid cards to choose from in the market, how can you pick out the right one for you?  Here are some practical tips:

Find a prepaid card that matches your purpose. How do you plan to use the card?  What kinds of purchases do you want to use it for?  Do you need a prepaid card that you can bring with you on an international trip?  Prepaid credit card features vary so you should be clear about your purpose and then look for a card that complements your particular needs. Continue reading →

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How to Choose the Best Secured Credit Card in the Market

Posted on December 22, 2011 by Monique Tieman

A secured credit card is a type of credit card for people with bad credit and no credit history.  Approval for this account is not based on the applicant’s credit history or score.  Rather, obtaining a secured credit card depends on your capability to submit the required security deposit.

Some issuers of secured credit cards require a minimum of $200 security.  However, if you prefer to have a higher credit line, you should be prepared to provide a higher cash deposit as well. The cash deposit serves as a guarantee that sufficient fund is available to pay the charges in case the cardholder fails to pay on time.  Hence, the credit limit provided is often based on the amount of the security cash deposit.  In some cases, the issuer may provide a slightly higher limit than the security. Continue reading →

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