Review of the Credit Builder Prepaid Debit Card



The Credit Builder Prepaid Debit Card was last reviewed on 23nd November 2005.

Summary - The Credit Builder is a prepaid debit card that is designed to rebuild one's credit. It is a debit card with a built-in CreditBuilder service. Under this plan, $29.95 is automatically deducted from your bank account every month for 12 months. This payment is reported to the three credit bureas, Transunion, Experian and Equifax. Unlike many prepaid credit cards, the Creditbuilder is not associated with Visa or Mastercard. However, the cards can be used at any merchants that accept debit cards. Let us explore this card in greater detail.

Credit Builder - How it works - Credit Builder is a services provided by EDP Reporting to help you build credit. Every month, $29.95 will be deducted from your bank account for 12 months. This fee will be reported to the three major credit bureaus to help you establish a credit history. Credit Builder is offering to pay the last installment payment for new cardholders.

Where can Credit builder be used? - The CreditBuilder is not a visa or mastercard. But it can be used at any merchants that accept debit cards. Most gas stations, grocery stores and convenience stores offer PIN-based debit, as well as many discount store chains. At present, you cannot use this card for online purchases.

Cost and Fees - Like most prepaid credit cards, the Credit Builder charges a one-time application and fee and processing fee when you apply. The one-time application fee is $49.95, which is non-refundable. You also have to pay a one-time processing fee of $50.00. This charge will be debited from your bank account. There is a monthly fee of $8.90, consisting of $4.95 for the debit card and $3.95 for the ATM card.

Methods of loading the Credit Builder - There are many ways which you can load your card. Firstly, you can load them via Direct Deposit from your employer. There is no limit as to how much funds you can load via direct deposit. You can also load your card via another debit Card (which will take one business day for the transfer to take effect), ACH transfer, bank checking or savings accounts , or U.S. Postal Money Orders. All of the above methods will take 5 days to for the transfer to be initiated (with the exception of the debit card transfer).

Cardholders will be charged a fee when you load your card. There is a $1.00 charge each time you load via direct deposit and bank account to card reload. There is also a $0.50 charge each time you use the card to make a purchase at a mechant.

Funding Limits - There are a few funding limits that cardholders have to observe.

1. There is no limit upon the maximum amount that may be transferred to your Card by an employer for your regular work payment.

2. You may not load more than $500 or less than $25 onto the card at any one time from your Funding Account.

3. The Card may not be loaded more than twice per day or ten times per week, nor for more than $1,500 per day or $5,000 per week.

ATM Withdrawal - You can also use your card to withdraw money from ATM machines or even from merchants. You are allowed to withdraw up to $300 within 24 hours from ATMs. The maximum cash back service cardholders can receive from a merchant (upon a purchase) is $50.00. Cardholders will be charged $1.50 for each ATM withdrawal.

Conclusions - The Credit Builder will appeal to those for a prepaid debit card that will also help to rebuild one's credit. The one-time application and processing fee is lower than the typical prepaid credit card. The only drawback to this card is that it is not a visa or mastercard and hence is not as widely accepted and that you cannot use it for online purchases. However, you should be able to use them at many places as most merchants these days accept debit cards.

Positives
  • No credit checks
  • Helps to rebuild credit
  • One-time application and processing fee is lower than the typical prepaid credit card


Negatives
  • Various application fees and transaction fees (which are common in prepaid credit cards).
  • Not a Visa or Mastercard
  • Card cannot be used for online purchases


Credit Builder Prepaid Debit Card
Cost/Fees
Annual Fee $No annual fee
Monthly Maintanence Fee $4.95 (Holographic Debit Card)
$3.95 (ATM Card)
Application Fee $49.95
Processing Fee $50.00
Card to Card Reload Fee $1.00
Bank Account to Card Reload Fee $1.00
Direct Deposit Reload Fee $1.00
Purchase at Merchant Fee $0.50
Telephone Purchase Fee $0.50
ATM Withdrawal Fee $1.50
Point of Sale Withdrawal Fee $0.00
Live Teller Withdrawal Fee $1.50
ATM Balance Inquiry $1.00
Online Balance Inquiry/Service Fee $0.10
Automated Telephone Inquiry/Service Fee $0.50
Customer Live Call Fee $3.00
Paper Statement Fee $5.00
Card replacement/cancellation/reactivation Fee $5.00
Maximum Load Not more than twice a day or ten times a week
not more than $1,500 a day or $5,000 a week
Maximum ATM Withdrawal $300 within 24 hours



Apply for the Credit Builder

If you already have the CreditBuilder, we would appreciate if you can take some time to post your review. Our readers will find them very helpful.


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