How Do You Establish Credit Where There Is None?
With the exception of a few cards, a prepaid Visa or Master Card are in essence debit cards – and by establishing an account with one of these you can build or improve your credit. They work by allowing you to establish a banking relationship where there is no credit check. In essence, all you need to do is complete an application and deposit an amount equal to the credit that you want to establish. You are then free to use the new credit card in any business that takes Visa or Master Card. Since you load the account with your own money, the bank that provides this service is then free to use your money in lieu of giving you interest – so it’s a trade off: you get to use the credit card as a charge card and the bank has another account holder. Here is the good part: The bank usually reports all credit activity to the credit bureaus, thus allowing you to re-establish your credit quickly and easily. Within a short time you will be able to receive offers in the mail for unsecured credit c
