pre-paid credit cards...DO THEY...

I really don't know, but my guess is no from what I have read, cause it is like having plastic money...Where as a regular credit card is more like a loan that you pay back...Almost like the pre-paid isn't even a credit card

Not sure but... I don't think so. Because with "prepaid" cards you are depositing and using your own money. Also you can get tiny credit cards with bad credit. They give you like a $300. limit, they take out about half of it to pay your "fee" and leave you with half or so to spend. But the interest rates are super high. Not the best but it is a tiny start to build credit slowly. JUST BE CAREFUL!!! Buy one thing and PAY IT OFF, as you do over time, if you pay on time every month they will increase your limit. If you make late payments you will never catch up because they will hit you with fee's. My friend did it and now has a $800. limit. It is a tiny loan but its a start when you have little. Think my friend googled "bad credit, credit cards." Read everything through before you do anything though!
If I find out more I'll add it.
Hope this helps.
Regina

Mark, I am not sure about the pr-piad cards but if your friend knows anyone with good credit ,maybe a family member or friend. He/She can ask the family member or friend to do what they call piggy backing. Maybe ask more then one person if possible. They would add his name to their CC so he could reap the benefits of their great credit which would bring his score up.
There is no risk what so ever for them. He doesnt get a card or know their pin number or acct# so he can never hurt their credit. on the other hand they can hurt his if they for some reason stop paying their debt. If he can go that way i would suggest it be short term until he gets his credit straightened out.
also a heads up to all - With CC they dont want you to use more then 35% of your available credit. once you start going over that amount it can start affecting your credit negatively even if you pay on time.
hope this helps.
Richie.

thanks...alright, I will keep that in mind...I did think bout being a co signer, but at the same time, it kind of scares me(although this person should be ok) cause I did that for another friend at one point, and he keeps paying it down once in a while, but charges almost to the max everytime...I am going to talk to him bout it...I am trying to better my credit at the same time cause can always improve it, but I wish I wasn't so nice sometimes to be honest...

According to Bank of America they do.They report your finances to the three big:
http://snipurl.com/g5l6z

Yes prepaid credit cards help your score!!

Alright...That sounds good...Thank you very much for your post stormy and tennball...

No problem..And may I add, that is how I started building my credit when I first came to the US. As long as you pay your balance on time, it is an good way to start. In 10-18 months you can apply for a ordinary credit card. Just remember not to close your account as that will affect you in a negative way.

Good luck and go get some real estate.

Hi! Found more info on this matter while searching the internet on ways to repair credit.
A secured (prepaid) credit card works just like a regular credit card. The difference is that you, the card holder, make a deposit against the credit limit on the account. The creditor uses the deposit as security in case you don't make the credit card payments.

The credit limit on a secured credit card is usually 50% to 100% of the deposit you make. For example, if you deposit $500 for a secured card, your credit limit will be between $250 and $500.

Secured credit cards usually have fees that regular credit cards do not. These fees includes application fees, processing fees, and annual fees. Beware of cards with high fees because they can greatly reduce your deposit amount because the fees are taken from it and ultimately, your credit limit is lower than what you deposited.

When you can’t get credit the traditional way, secured credit can help you demonstrate your improved payment habits.
But it is important before you apply for a prepaid card, to make sure the creditor reports to all three major credit bureaus. If not, the card won’t benefit you in terms of re-establishing your credit because future creditors won’t be able to see your re-newed payment history on your credit report. (It won't be included on your credit report or in your credit score.)

After you’ve been approved for your prepaid card, remember your reason for the card is to build a better credit history. That said, don’t use the card to incur debt, use your secured credit card to make small purchases that you can pay in full each month.

After time you may be able to transition over to a Un-secured credit card (a regular non-prepaid card)
Many credit card companies will allow you to change over to a unsecured credit card after one or two years of of you making payments on time. So ask them.
If you can’t convert your secured credit card with that company, try to apply for an unsecured credit card with another card company.

BUT don’t apply for credit cards with a bunch of companies after you’ve been denied by one. This makes you look desperate for credit and could ultimately lower your score buy having a lot of inquiries and into your credit history. Instead, just keep making payments (on time!)on your secured card and try to apply again after six months or so.

Hope this helps .
Also thanks! Now I have learned something as well!

Good luck Regina.

Well, I am going to show him this post, and that will help him a lot, as well as me knowing for the future too...Thanks alot for finding that information for me...This will probably make him feel pretty good too...

When I first got a call from Dean's Group, a secured credit card was the first thing they recommended to me to build my credit score. They suggested I go to my own bank first and ask for one. Unfortunately my bank does not offer these types of credit cards. I do know three friends who have built their credit this way.
Kat

If you go to www.bankrate.com you will numerous secured credit cards you can apply for.

They have all sorts of card types to choose from - gas, student, secured, bad credit, retail, ect. You click on the type you are looking for and it brings up a list with specifics.
Kat

Thank you...I am going to show him this whole posting, and let him see how much you guys rock...And I am sure he will be very thankful...I know I am...

You should keep a revolving line of credit on your card. Something that charges you monthly like a blockbuster or netflix account and just pay it on time. When they see you're consistently paying on time on a reoccurring charge you look very credit worthy to them. That's how I started building my credit, I had a 721 score by doing this and didn't even know it.

wow...That is pretty cool, and never thought of that...He is going to love all the responses from ya'll

Yes, your friend can open a secured cc, this will help establish credit, after about 6 months your friend will get the money he put down back and the bank will give him regular credit card.

this is turning into one of the most informative /useful topics for many members. GREAT idea to ask this question here. I have learned a few things that I haven't seen anywhere else on the site!

I know...I honestly did not think this many people would respond and have that much information on this subject...But i guess that is why we shouldn't be afraid to ask anything what so ever...

This is why this forum is here!! You can ask any question you can think of even if you think it is a dumb one!! There are so many thoughtful people here that take the time out of there day to sit here and answer questions!!

Shaun

SECURED CARD v.s PRE-PAID CARD

You answers from he others in this board as well as Bank of America are 100% CORRECT - A SECURED CARD will definitely help your credit because its a real credit card and you are securing the line of credit by using your OWN money and it is subject to the same terms, conditions and billing as a regular card. When you buy something you get a bill and you pay that amount back.

A PRE-PAID CARD - DO NOT help your credit. That would be those like netspend and greendot. They work by you depositing your own money on them, and when you spend it thats it. There is no billing, no reporting to the credit bureau, no anyting. When the money is gone its gone. You can pick these up at any grocery store, check exchange, online, ect.

So the gist of it is that SECURED cards are real credit that you can get to start re-establishing good credit lines and that actually report to the bureaus. Ask your bank for a secured card if you cant get one the regulat way. PRE-PAID cards are good for ordering online purchases and for things where you need to pay but do not want to divulge you "real" credit card info.

Thank you for you attention. (smile)

OOOppppssss after reading the original post again I see it!! Sorry for any confusion Anita is right about this!!

I have found that you just need to ask the credit card issuer. Just ask if and how often they report to the credit bureaus. Also as someone else said most require a deposit but because it is a deposit in a different savings account it is still a credit card and yes they will report to at least 1 of the 3 credit bureaus. I hope this helps.