Will Prepaid Cards Show Up On My Credit Report?
A visitor to Debit Card Guide asked:
Thanks for your informative site. I’m trying to determine if pre-paid cards will show up on my credit report. I’ve been told that they will by some and that they won’t by others. My assumption is that if they require a SSN they will be on your report. Do you know if this is true or if there are cards that don’t show up on a credit report? I apologize if this is on your site somewhere - if so I missed it.
Thanks for your email and for visiting Debit-Card-Guide.Com. Generally speaking Prepaid Debit Cards, do not show up on your credit report. However, some debit cards companies have agreements with the reporting agencies where they do report your payment history to the credit reporting agencies. I discuss more about that here: Credit Builder Debit Cards http://www.debit-card-guide.com/creditbuilder_debit_cards.htm
Basically these prepaid debit cards offer a built-in credit reporting feature called “Credit Builder”. When you sign up for these debit cards you will be offered the opportunity to have your payments reported to the credit agencies by Credit Builder. It enables you to show a continuous history of activity within the credit system.
Each month the card’s issuer credit reporting partner will process your payment record and verify that your data is properly posted to the credit bureaus’ records. Your payment history is archived for 7 years from the last activity installment payment as required by law. Often, this service is offered to you for an optional small monthly fee and is helpful for people who are trying to build or rebuild their credit history - this should be stated somewhere in the debit card’s application or agreement.
However, only some prepaid debit cards offer this and you can find a list of these right here: http://www.debit-card-guide.com/creditbuilder_debit_cards.htm
I hope you’ve found this answer helpful. Thanks again for visiting.
Do you have a question that I could help you with? if so, please feel free to contact me. I’ll do my best to answer your question.
