Q:

Does using a Visa prepaid card lower a person's credit score?

A:

Quick Answer

Using a prepaid Visa card does not lower a person’s credit score, according to DailyFinance. Since the use of prepaid cards is not reported to credit agencies and there is no line of credit, the cards do not help or damage credit.

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Full Answer

People with bad or no credit histories can use prepaid cards, explains DailyFinance and NerdWallet. The cards work much like a debit card in that cardholders deposit money into a bank, and the bank issues a line of credit equal to the amount held. The person can then spend up to the loaded amount, but the cards do not come with a credit line or interest rate.

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