Prepaid Cards That Help Build Your Credit

Prepaid credit cards are similar to debit cards. Consumers must create a "collateral account," or a separate savings account that is used to secure the credit card. The credit line on the secured credit card cannot exceed the balance in the collateral account. The best secured credit cards not only teach responsible borrowing, but also report to the three major credit bureaus (TransUnion, Experian and Equifax)--thereby building and maintaining good credit.

First Premier Bank Secured Card

First Premier bank is a larger credit lender. The majority of their business is in unsecured credit lending, but this secured credit card can be used by all types of consumers. The credit card has a minimum balance requirement of $200, but consumers can add as much as $5,000 to their collateral accounts. Consumers can use this card at all major retailers as it carries the internationally-accepted MasterCard logo. Last, and most important, this card reports to all three major credit bureaus. With on-time payments, consumers will build credit or re-establish better credit.

Public Savings Secured Visa Card

The Public Savings Credit card is similar to the First Premier card in that it reports to all major credit bureaus. The card does not come with collateral-draining annual, processing or monthly fees. With its association with Visa, consumers can use the card at most major retailers and online stores--both nationally and internationally. The card is guaranteed. Not only does this mean customers need not provide credit information, it also means that employment is not required. So long as borrowers make on-time payments and keep their collateral accounts filled, this card will remain active.

Platinum Zero Secured Visa

This card is also an affiliate of the Visa brand. Like the other cards, it can be used worldwide at most retailers. In addition, this card comes with zero activation fees, zero annual or monthly fees, zero processing or collateral fees and a zero percent rate--hence the name "Platinum Zero." The rate of interest is also zero. This rate is secured, even if payments arrive late (late payments (30 days overdue), though, will negatively affect credit scores). The card comes with identity theft protection services, too.