| Are you looking for a prepaid card that reports to | | | | put more money onto your card or it will become |
| a credit bureau? The short answer is that most | | | | inactive. With prepaid cards, you'll pay either a |
| prepid cards do not help you improve your credit. | | | | monthly fee or a per-transaction fee (usually a |
| That's because prepaid cards are not credit cards, | | | | dollar a transaction). So while these cards aren't |
| and thus they do not extend credit to you. No | | | | free, for the unbanked (people who can't get a |
| credit, no credit bureau tie in. | | | | credit card or a checking account) they are an |
| However, there are are some cards that offer a | | | | excellent alternative. |
| credit reporting feature. Called the iAdvance Line | | | | More About iAdvance |
| of Credit by MetaBank, this is essentially a way to | | | | Here's how iAdvance works. You go to the |
| take out loans on a prepaid card account that | | | | iadvance website and sign up using your card |
| when paid back get reported to one or more of | | | | account. You have to have direct deposit set |
| the three major credit bureaus: Experian, | | | | upon your card as well. With the MiCash Card, you |
| TransUnion, or Equifax. | | | | simply download a direct deposit form and, fill it |
| What Is a Prepaid Card? | | | | out with your card's account number, and hand it |
| First know how prepaid cards work. They are | | | | in to your employer's payroll department. |
| stand alone cards that look and act like a checking | | | | Once you have set up direct deposit, you contact |
| account debit card. They carry the Visa or | | | | iAdvance online or by phone and take out a loan |
| MasterCard logo (typically) and run on the same | | | | against your card balance (up to 50% of your |
| debit card networks. They have an embossed | | | | balance). iAdvance does not recommend treating |
| 16-digit number on the front. This is your card's | | | | this program like a payday loan, and limits the |
| account. They have a magnetic strip on the back | | | | number of iAdvances you can take out in a given |
| for card swipe machines to read your card | | | | calendar year. |
| account number. And they have a security code | | | | Rather, it is meant for you to take out small |
| and signature line on the back as well. Unlike | | | | loans--even as small as $20, which will then be |
| traditional debit cards (also known as check cards) | | | | automatically paid back the next time you have a |
| prepaid cards are debit cards that are not | | | | direct deposit. This loan transaction and the fact |
| attached to a checking or savings account. | | | | that you paid it back on time (which happened |
| You simply apply for a prepaid card from any | | | | automatically provided you didn't cancel direct |
| number of prepaid card companies--such as | | | | deposit in the interim) is reported to one or more |
| MiCash MasterCard. There are no credit checks. | | | | of the three major credit bureaus. |
| You just have to verify your identity by providing | | | | Over time, you will build up a history through |
| your social security number and birth date (as | | | | iAdvance of paying loans back on time. This |
| required under the U.S. Patriot act to avoid | | | | should help with your credit score, althought |
| terrorists or other criminals from obtaining a card). | | | | iAdvance makes no claims that it will. |
| To use the card, you must "load" your card with | | | | Not a Credit Card |
| money. You can do this through direct deposit, or | | | | So, even though you don't have a credit card, this |
| through reloading networks. (See which networks | | | | is a good method for generating some "credit" |
| apply to your prepaid card). | | | | that will wind up in your credit report. Another |
| After you do that, you can use the card for | | | | method is to pay bills, although bear in mind that |
| purchases, and for each purchase, the purchase | | | | most bill pay programs do not report to the |
| amount is deducted from your card's balance. | | | | major credit bureaus and hence, their value is |
| When you reach zero dollars, you either need to | | | | minimal. |