Can a Prepaid Credit Card Help Your Credit Score?

You may have heard about prepaid credit cards as an alternative to real credit cards, especially if you have bad credit or no credit at all. The truth is, prepaid credit cards aren't really credit cards at all, not in the sense that credit cards extend you a certain amount of credit that you must repay.

Real credit cards are a lot like loans. Prepaid credit cards are more like a plastic version of cash - once you spend your balance, you need more before you can spend more. Find out more about prepaid credit cards.

If you're looking for a way to establish or re-establish your credit, a secured credit card is what you're looking for. You make a deposit in the same way as a prepaid credit card, but your purchases are loaned to you rather than subtracted from the balance of the deposit. Learn how you can rebuild your credit with a secured credit card.