Do prepaid credit cards build credit?
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I’m 21. Have no credit history. It’s the only credit card I can get…
They Don’t
Unfortunately, pre-paid credit cards are not extension of credit. As such, they are not reported to the credit bureaus, and will not show up on your report.
According to the new regulations that were introduced on Feb 2010, you need to be 21 and employed at least 18 months (a part time jobs or minimum wage will not suffice) before you can get a regular credit card.
You have three choices to get a credit card:
- Have someone co-sign for you
- Take out a secured credit card that converts after a year or so to a regular card
- Have you parents add you as an authorized user to their credit card
Secured credit cards are easier to get than regular credit card, and they build credit just the same. After a year, you can ask your credit card company to convert it to a regular card.
See Establishing Credit History with Credit Cards for more information.
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