Can You Build Credit with a Prepaid Credit Card? [2025 Guide]

If you’re trying to build or rebuild your credit, you might be wondering if a prepaid credit card can help. The short answer? No — but don’t worry. There are still great alternatives to get your credit score moving in the right direction.

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Why Prepaid Cards Don’t Build Credit

Prepaid cards function more like debit cards. You load money onto the card and spend from that balance — but no credit is being extended.
👉 Experian explains why prepaid cards aren’t reported to the credit bureaus.

Since there’s no credit activity, prepaid cards do not impact your credit score, either positively or negatively.

What Prepaid Cards Are Good For

• Budgeting: Prepaid cards are great for controlling spending.
• Online Shopping: Safe for purchases without linking to your bank account.
• Travel: Useful for setting a fixed travel budget.

How to Actually Build Credit

If you’re serious about building credit, consider these options:

1. Secured Credit Cards

You pay a deposit (usually $200–$500) which acts as your credit limit. These cards report to major credit bureaus and can help you build credit responsibly.
👉 NerdWallet’s list of best secured cards is a good place to start.

2. Credit Builder Loans

These small loans are designed to build credit from scratch. You make fixed payments, and the lender reports your on-time payments to credit bureaus.

3. Become an Authorized User

Get added to someone else’s credit card account. Their good payment history can help boost your credit score.

4. Chime Credit Builder Card

A no-interest, no-fee card linked to your Chime account — designed specifically for credit building.
👉 Learn more about Chime Credit Builder.

Final Thoughts

While prepaid credit cards can’t build your credit score, there are plenty of smart, beginner-friendly tools that can. Focus on secured credit cards, credit builder loans, and other proven methods to grow your credit history the right way.

P.S. For more beginner credit tips and financial advice, visit Date Night Now — your 2025 guide to smarter money moves!