Does Netspend Report to Credit Bureaus?

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Does Netspend Report to Credit Bureaus?

Netspend, which was founded in 1999, is a prepaid debit card issuer with over 68 million personal and small business clients. Although using one of these cards is safer and more convenient than carrying cash, it still enables the user to make in-person and online transactions. Netspend, as a prepaid debit card service, does not need a credit check and does not disclose account activity to credit agencies.

Key Takeaways

  • Netspend is a prepaid debit card that may be topped up on a regular basis through direct deposit.
  • Certain government benefits, such as Social Security payments, may also be transferred to a Netspend card.
  • Netspend activity is not reported to credit agencies and thus has no effect on your credit score.

Debit Cards vs. Prepaid Cards

Cardholders may use their pre-funded Netspend Visa Prepaid Card or Netspend Prepaid Mastercard just like a debit card for purchases and payments. The distinction is that debit cards are often backed by a line of credit or overdraft protection, which are both considered kinds of credit that may be reported to credit bureaus.

Netspend cards will neither help or hinder cardholders’ credit since they do not issue credit to them. Cardholders must deposit their own funds into their accounts before using their cards; otherwise, they will be refused.

If you wish to engage in the company’s Direct Deposit service, you may get a Netspend Premier card. This implies that each month, customers’ payroll or government payments are sent directly into their NetSpend accounts.

With its Netspend Premier card, the corporation provides a “purchase buffer” of up to $10. However, it is not considered a credit line. In the case that a user’s account does not have enough money to cover a purchase or payment, the firm allows them to have a negative balance of up to $10. Any money they deposit after that will be used to pay back that amount first.

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NetSpend’s Account Opening Requirements

To comply with the US PATRIOT Act, the firm just needs a name, address, and email address to enroll on their website. You must then establish a username, password, and security question. After completing these two processes, you will get your card within seven to ten business days. You may start funding the account at any moment.

Applicants for credit cards and conventional debit card accounts must submit their Social Security Number and birth date. Companies that supply these sorts of accounts do credit checks prior to acceptance, which typically influences the amount of credit available. Whether or whether the account is approved, they may submit this information to credit bureaus.

Credit reporting organizations explicitly keep credit records using Social Security Numbers. NetSpend cannot send credit bureau information if it never prompts cardholders to provide this information.

A reportable crime would be uncommon since the cardholder’s own money prepay NetSpend accounts. If you spend the “buy cushion” of up to $10 with your NetSpend Premier card and don’t pay it back, the firm may call a collections agency.

Where Can I Purchase One?

Netspend cards are available at local businesses as well as big chain stores such as 7-Eleven, Walgreens, and Dollar General. Customers may choose between a MasterCard and a Visa prepaid card. Users finance them through direct deposits from wages, tax refunds, Social Security, pensions, and other benefits. Cards may also be loaded at over 130,000 places around the country.

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