How to Build Credit With a Pre-Paid Debit Card
To some it seems impossible to improve you bad credit score, when no one will even give you any credit! All hope is not lost, a great start to improving your score is to obtain a prepaid debit card. With prepaid debit cards you can slowly start improving your credit score.
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Instructions
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Know what you are applying for. There are several prepaid debit cards on the market to choose from. Deciding which one is best for you can be a bit of a challenge. Don't be afraid to shop around, there is one out there that will meet all your needs. An important thing to look for while shopping around is the fees associated with a prepaid card. A prepaid card that has too many fees will not help you manage your money if all of it is going towards fees. After searching for cards I landed happily on an Accountnow pre-paid debit card.
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Find a card that will actually help your credit. Not all prepaid cards offer services that help your credit. Different companies have different programs, e.g. "Credit Builder," that can help improve your credit score. Find one that will benefit you the most without charging you too much.
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Manage your spending easily. Many of the prepaid cards offer online statements that will allow you to see all your transactions associated with that account. People with poor credit sometimes are unable to open a checking account and are left with carrying cash around. Prepaid cards are a great alternative to those. With prepaid cards are you still able to keep track of what you're spending your money on and in turn help you budget more wisely to get your debt in check.
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You only spend what you have. Unlike credit and debit cards , prepaid debit cards do not let you overdraw. Therefore you cannot accumulate more debt then you already have. With prepaid cards, if you do not have sufficient funds for a transaction it will be denied. And you will not have costly overdraft fees putting you more in debt.
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The premiere pre-paid debit card out right now for building credit is an AccountNow Mastercard. I have included a link in the resource section below if you would like to start building your credit today!
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Tips & Warnings
AccountNow also has a refer-a-friend program to help you earn extra cash and a $25 credit if you sign up for direct deposit shortly after opening your account.
