Does it help build credit to get a prepaid visa card??

Question

Just turned eighteen and need to build up credit to finance a car...I know about store credit cards helping but do prepaid credit cards add credit??

Answer 1

No.

Prepaid Visa cards are what the financial industry calls "Stored Value Cards."

They don't build your credit rating because you're not borrowing any money.  You're using the money that you've already given to GreenDot (or whoever runs your prepaid Visa).

If you want to build your credit rating, you need to get a credit card.  Bank of America offers some decent first-timer credit cards.  Check with whatever bank you use and see if they offer one.

Answer 2

No.

Your credit history is documenting how much money you have been loaned by someone else and how consistently you have paid it back.  A pre-paid card is your own money.

Answer 3

no and yes...huh?

not initially, but some poeple can't get credit cards outright, so they start by getting a prepaid, after you use that correctly, many banka will convert it to a regular credit card.  Bonus is, it will be in the same account so you will have a credit history starting from when U got the prepaid card.. a longer history is a good one

do it, start a history as soon as possible