Do prepaid and secured credit cards help your credit? Do they get reported to the credit bureaus?

Answered on July 05, 2013
Updated on July 05, 2013
The content is accurate at the time of publication and is subject to change.
Amy Miller Amy Miller

Prepaid cards do not help your credit because the activity on the card is not reported to the credit bureaus. But secured cards are good option if you want to improve your credit history. The issuers of secured credit cards report the credit performance to the major credit bureaus. So if you want to improve your credit, consider a secured credit card.

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BROWSE MORE QUESTIONS ABOUT Secured Credit Cards:

First of all, make sure your credit score is high enough to qualify. As a rule, airline co-branded credit cards are for people with good or excellent credit. Those whose credit is close to good credit, may also qualify for such card. Then, if your primary goal is credit building only, or even if you want to earn some points, Interjet Platinum credit card may not be as good. The card's rewards program is not one of the rewarding, and if you are planning to carry a balance, your points may be eaten by interest. When applying for a rewards credit card, it is recommended to pay off the card...
You can apply for a secured credit card. You will need to put down a security deposit to get this card. A minimum security deposit is around $200 and it gets you the equal line of credit. Secured cards work like general credit cards and can be used everywhere they are accepted. For example, you can apply for a Discover it® Secured card. This card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically and unlimited 1% cash back on all other purchases.
In order to get your deposit back you need to close your credit card account and pay your card balance in full. After you paid your card off, contact the credit card issuer to request a refund of your security deposit.

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