Have a poor credit rating?
Do Prepaid credit cards improve my credit rating?
I have a poor credit rating? – Can a prepaid card help to improve my credit score, and does my account history update information held with Experian or Equifax?
Whilst prepaid credit cards can be a very useful product for those with a good credit rating, many card providers target their prepaid products at those with bad or no credit history. With the number of IVA's (Individual Voluntary Arrangement) and bankruptcy cases on the increase, there is a growing population in the UK that are unable to get a traditional credit or debit card, without paying extremely high fees.
However, given you are loading your own money onto your prepaid card, and the card issuer is not lending you money, information relating to your prepaid account is generally not exchanged with the credit bureaus (Equifax and Experian). So, whilst you may maintain a healthy balance and operate your account within the card providers terms and conditions, this good history will not improve your credit rating.
That was until Cashplus launched Cashplus Creditbuilder, which is currently the only Prepaid card that WILL report your information to credit bureaus, which could improve your credit score!
Creditbuilder is a great alternative to high interest credit cards offered by issuers that specialise in lending to customers with previous bad or no credit history.
If you want to see your credit file, you may do so online directly with Equifax or Experian. You can even get your credit file instantly!
See the information lenders see.
View your free Experian credit report online .
Click here to visit Equifax instant credit report
We hope you found this answer useful. If you have any comments, or further questions, drop us an e-mail at what-prepaid-card.co.uk , and we will do our best to help you.