Which Pre-Paid Card Should I get?

gunnapaul2

Hi, I need some advice on a pre-paid card, first of all and most importantly do they actually help you boost your credit rating? Mine's currently poor but I am working on paying off small debts I owe and am trying to fix my credit, I've already saved up some money so just wondering if I should put it into a pre-paid card, and if so which ones can you guys recommend?

Thanks.

KILL_BILL

no they dont.. al they are just like payg mobile phone. you top up the card and then can use the card wherever u see the visa or mastercard symbol and all of them have either a per transaction or per month fee.

there is one prepaid card which for a monthly fee set up a loan which you then pay back on a monthly basis

have you tried applying for a capital one progress credit card

they ven if you have a poor credit give you a secured card which initially you will have to put a security deposit on

gunnapaul2

I've not tried for a Capital One Progress Card, they're one of the companies I'm currently paying off a debt to so there would be no point in inquiring. Apart from saving money and paying off debts are there any other good ways to fix and improve my credit score that don't involve applying for more credit? At this stage I was declined for a Granite card and they're supposed to be good for people with poor credit.

Tixy

Only the credit builder prepaid card will appear on your credit file - and therefore could help you build a positive credit history.

Before you decide if it would be worthwhile - What do you have currently showing on your credit file?
What active accounts do you have and do you have defaults on them all?
If you have active accounts without defaults then just paying them on time each month will start to build up a positive credit history.

If you've managed to save some money rather than a prepaid card it will probably be best for your file to pay it towards any debts you still have outstanding.

gunnapaul2

I have 3 debts on my credit file which are defaulted which I'm looking into arranging to pay off. There's only bank accounts otherwise which I keep in good order. So I should pay off these debts first then look into a pre-paid card?

Thanks for the advice.

Tixy

If you pay them off and confirm that the defaults are marked as satisfied (which can take a month or so after paying them off for your file to update) - you might then find you are able to obtain a new subprime card to use to start building up a credit history.

The advantage of this over a prepaid card is that you can start your rebuilding without it costing you anything (providing you pay the card in full each month) and it shows other potential lenders that you can now sensibly manage a revolving credit facility rather than just manage to repay a £60 loan over a year.

Have you read 'Bad Credit' Credit Cards: Best cards for poor credit scorers...

gunnapaul2

Ok seems like good advice, thanks.