Prepaid credit cards to rebuild credit

February 18th, 2010 Admin Leave a comment Go to comments

What are the best prepaid credit cards to rebuild credit? While their number have dropped steadily in the last 2 years, there are still quite a few out there, and here we are trying to narrow your choices somewhat, to help you navigate among prepaid credit card offers, because some are not as good as others. To get a prepaid credit card you open an account and deposit money there, just as you would when opening a checking account. Once the bank issues you a prepaid credit card linked to the account, you can use it anywhere regular credit cards are accepted, and rebuild credit along the way. Understand that it works as your typical secured credit card. Your deposit serves only as insurance. Just like with regular credit card, you have to pay the bills monthly from other sources in order to build credit history. Of course nothing is for free and these prepaid credit cards do require some fees, but allow you to rebuild credit and pave the way to regular credit cards. Some cards require substantial fees but offer certain perks in return. And obviously, you need a prepaid credit card that reports to three main credit bureaus, Equifax, Equifax and TransUnion on regular basis while keeping fees such as annual, processing or usage fees to the minimum.

Offered by New Millennium Bank, the Black Diamond MasterCard Card is ideal for the United States resident with a valid social security number who wants to build credit. You must be of legal age in the state of your residence and have at least $300 for initial security deposit. This prepaid credit card guarantees approval regardless of your credit history. New Millennium Bank won’t even check your credit but does report monthly to Equifax, TransUnion and Experian. You can deposit as much as $5,000 and your credit limit equals to the full amount of the deposit. Not only will you rebuild credit history, your security deposit can earn 6.0% interest for the first 3 months, then 2.0% interest for the next 9 months, giving you a 3.0% annual percentage yield (APY). Afterwards, your account earns 2.0% APY and these rates are subject to change. What’s more you can get two prepaid credit cards which will give you two separate credit accounts reported monthly so you can rebuild credit faster.

The bad news come in the way of fees and current APRs. To obtain this card, you would have to pay upfront set up fee of $99.95, and there is also annual fee of $59. Black Diamond MasterCard Card also has 19.50% Annual Percentage and Default Rates. Late and Over the Limit fees are capped at reasonable $20 while cash advance fee is 2%. You can apply here.

The New Millennium Bank Platinum prepaid credit card has the same qualifying requirements, charges the same fees as Black Diamond MasterCard card, but offers quite a few additional benefits similar to regular credit cards including,
– emergency cash transfers
– free accident insurance of $150,000
– free auto rental insurance
– free extended warranty protection
You will be also eligible to redeem a Free Companion Airfare, which you can use to travel with a travel companion to most major US cities when purchased with one adult round trip airfare. The NMB entices you to get two credit cards right away, so with maximum $5,000 deposit for each, you will get two credit records on your report, two new lines of credit reported monthly to all three credit agencies and most importantly, you can charge both credit card for lesser amounts, thus holding your utilisation rate low which would speed up your self credit repair even faster. Excellent prepaid credit cards for those who have cash to spare and desire to build or rebuild credit history. Apply here.

This is Platinum Zero secured Visa credit card with very lucrative 0% APY on purchases. Yes, a no interest prepaid credit card that helps you rebuild credit as long as you pay on time. Issued by Applied Bank, it comes with annual fee of $119.40 paid in monthly installments of $9.95, and a fixed APR of 9.99%. Other key benefits include online account access, fraud protection and acceptance everywhere Visa is accepted. All you have to do is verify your age, residency and deposit anywhere fro $500 to $5,000 USD for a security deposit. No credit check, no income verification, no application fee. Cash advance fee is 5%, default APR is still the same 9.99%, late and over-the-limit fees are $35 each. Go here to get what is one of the best prepaid credit cards out there.

Prepaid credit cards from Orchard Bank are in demand by the people who want to rebuild credit histories. You can also get Platinum, Gold, or Classic card. The bank offers just one simple application form you must fill, then it reviews it and matches you with the credit card based upon your credit profile. Either one, not necessarily prepaid or secured card, will help you build or rebuild credit history. You can use Orchard cards everywhere MasterCard cards are accepted, make reservations and online purchases as well as track your always up-to-date account information online. What is more, you can set up alerts to receive emails or text messages several days before payment is due. The secured or prepaid credit card comes with a variable purchase APR of 7.9%, zero setup and processing fees, and an annual fee of $35 waived for your first year. Default APR is 29.49%, cash advance fee is 5%.

Issued by First PREMIER Bank, prepaid Centennial MasterCard or Visa credit card is accepted everywhere and is often is one of the last resorts for consumers with bad credit. You will get monthly reporting to TransUnion, Experian and Equifax, 24 x 7 account access by phone and have an opportunity to rebuild and your credit history, but at costs that are higher than those of other comparable prepaid credit cards. The fees are as follows,
– one time $95 processing fee
– one time $75 first year annual fee
– subsequent $75 annual fees billed monthly at $6.25
– late payment fees of $29 for balances up to $500.00, or $35.00 for balances greater than $500.00.
– $29 return item charge so think hard before buying

Cash Advance fee is waived cash advances taken in the first 12 months your credit card account is open. Afterwards, either $5.00 or 3% of the amount of each cash advance, whichever is greater but no more than $10 maximum. Annual Percentage Rate for cash advances and purchases is 23.9%. You do have at least 25-day grace period after the close of each billing cycle. Apply here.

Financial Freedom Expert