Apply for a Prepaid Credit Card

Credit card issuers are tapping into a growing market of customers with damaged or no credit who have available funds and want to rebuild their credit rating. These may include students, recent immigrants, or individuals who have a low income or have declared bankruptcy.

Prepaid cards are not credit cards, but work in a similar way once the cardholder has loaded funds to the card account. They are generally accepted wherever credit cards are used and offer a convenient method of using funds while building up a credit history. Many prepaid cards charge a range of fees including activation, annual, and monthly maintenance fees. Some also charge fees whenever funds are loaded.

Although there are usually several fees attached to prepaid credit cards, the cardholder cannot get into debt using the card and there is often an option to have card activity reported to the major credit bureaus. An additional fee is often associated with this service but it can be an effective way of building or improving the cardholder's credit rating.