One of the few prepaid credit cards that can help build credit comes from AccountNow. With an AccountNow prepaid Visa or MasterCard, you can sign up for what is called an iAdvance. The iAdvance enables card holders to get a short term loan that is paid back when the next paycheck is deposited onto the AccountNow card. One of the advantages of an iAdvance is that the payments are reported to the three major credit bureaus. So let’s take a closer look at how AccountNow’s iAdvance works.
How do you qualify for an iAdvance?
In order to qualify for an iAdvance, you must satisfy the following eligibility requirements:
- you are at least eighteen years of age
- you have an active prepaid card in good standing that is eligible for iAdvance
- you direct deposit wages or other sources of income to your prepaid card on a regular interval
- you have wages or other sources of income or benefits direct deposited to your Card on regular intervals not to exceed 35 days and in qualifying dollar amounts (each a “Recurring Load Transaction”). In the event your Recurring Load Transactions are discontinued or reduced, AccountNow may suspend or reduce credit privileges in their absolute discretion
- you do not already have an iAdvance account open or had an iAdvance account charged-off due to non-payment
- you have a verifiable e-mail address
Both the AccountNow Prepaid Visa and AccountNow PrePaid MasterCard are eligible for an iAdvance Line of Credit.
How does an iAdvance work?
Once you have an AccountNow prepaid card and set up direct deposit, you can apply online for an iAdvance line of credit. There are no fees or obligations to apply. Your credit limit will be determined based on your application and credit history.
Once approved, obtaining an iAdvance loan can be done entirely online. The amount of the loan is deposited directly on to your AccountNow card. The loan, plus fees, are repaid automatically when your next direct deposit is added to your card.
Advantages and disadvantages of an iAdvance Line of Credit
First the disadvantage–cost. For every $20 borrowed, the fee is $2.50. That’s extremely expensive for a short term loan. While it may be your best option in an emergency, the cost of an iAdvance loan is a big disadvantage.
That said, there are some advantages. First, an iAdvance loan is an extremely quick and convenient way to get emergency cash. The process is entirely online, and the loan is automatically repaid on your next payday. Second, payments on the loan are reported to the three major credit agencies. As a result, an iAdvance can help you build your credit.
To get more information, visit AccountNow.
