How do i build my credit with a prepaid visa (canada)?

Question

i applied for the western union prepiad visa card thinking i could biuld my credit score but i'm not sure if thats possible

Answer 1

If you have no credit or poor credit and cannot get a regular credit card you should absoloutly get a pre paid card. Get a small $500 or $1000 secured (pre paid) credit card. I wouldn't go Western Union I would go Citi financial. Make sure the card will report as a trade line on your credit bureau and start using it. Do your best to keep the balance on it low and ALWAYS make your payments inside of 30 days, even if its just the minimum.

Be patient as you'll need to spend at least 6 months but probably a year plus for you to get some "leverage" out of it score wise.

Another fast way to build your credit is to get a co signor on a strong trade line like an auto loan. If you want to go it alone companies like VFC (TD Canada Trusts) non prime auto lender are great ways for someone with limited or poor credit to get a ride. Their loans like others are open loans that you can pay off anytime you want!

Heads up - When you do get a stronger score never go credit crazy as most lenders will consider you a credit seeker and a risk.

Good luck.

Answer 2

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Answer 3

Prepaid cards are not credit and are not reported to your credit file. They are like gift cards.  You put funds on the card and can use the card till the funds are used up.

Answer 4

I don't recommend anything prepaid, except maybe phone cards.

Get a real credit card, solidy your credit rating with maintaining it like the rest of us.

Go to TD Canada Trust and get a TD Green card or something like  a GM card. you'd be better off :)