What Netspend Credit Cards Are
Netspend offers prepaid cards and credit cards through different product lines. The prepaid card is the most common Netspend product — you load money onto it and spend what you've loaded, similar to a gift card. Netspend also offers a credit-building card designed to help people with limited or damaged credit history build a payment record that credit bureaus will recognize.
The key difference: a prepaid card has no credit component. You cannot borrow money. A Netspend credit card reports your payment behavior to the three major credit bureaus (Equifax, Experian, TransUnion), which means on-time payments can gradually raise your credit score. The prepaid card does not report to credit bureaus, so it does not build credit history.
Both products charge monthly or per-transaction fees. The exact fees depend on which Netspend product you choose and which features you add. Netspend is owned by TSYS, a payment processor, and the cards are issued through partner banks.
Key Takeaways
- Netspend prepaid cards let you spend only money you load onto the card, while Netspend credit cards let you borrow a small amount and build credit history if you pay on time.
- Monthly maintenance fees, ATM withdrawal fees, and reload fees vary by product and can range from $0 to $15 per month depending on your account activity.
- A Netspend credit card reports to credit bureaus, so consistent on-time payments can raise your credit score over time.
- Prepaid cards are faster to open than credit cards and do not require a credit check, but they do not help you build credit.
- Both products charge fees that can add up quickly if you use certain features frequently, so comparing the fee structure to your spending habits matters.
Netspend Prepaid Cards vs. Credit Cards
Netspend's prepaid card is a spending tool only. You load money from your bank account or paycheck, and you can spend only what you've loaded. There is no borrowing, no interest rate, and no credit reporting. The card works anywhere Visa or Mastercard is accepted. This product is useful if you want to avoid overdraft fees, control spending, or do not have a traditional bank account.
Netspend's credit card is a borrowing product. You receive a credit limit (often $300 to $500 for first-time users), and you can charge purchases up to that limit. You then receive a monthly bill and must make a payment. If you pay the full balance by the due date, you pay no interest. If you carry a balance, you pay interest at the card's annual percentage rate (APR), which varies. This card reports to credit bureaus, so your payment history affects your credit score.
The choice depends on your goal. If you want to spend money you already have and avoid debt, choose the prepaid card. If you want to borrow small amounts and build credit history, the credit card is the right tool — but only if you can pay your bill on time most months.
Fees You Will Encounter
Netspend cards charge multiple types of fees, and they vary by product. A monthly maintenance fee is common on both prepaid and credit cards, though some account tiers waive it if you meet certain conditions (such as receiving a direct deposit each month). Monthly fees typically range from $0 to $15.
ATM withdrawal fees explore when you use an out-of-network ATM. Netspend usually offers a limited number of free withdrawals per month, then charges $1.50 to $3 per withdrawal after that. Reload fees explore to prepaid cards when you add money to your balance — some reload methods (such as direct deposit) are free, while others (such as retail reload at a store) may cost $1 to $3.
Credit cards charge interest on balances you carry, calculated as a daily rate based on the card's APR. Late payment fees explore if you miss a payment important date, typically $25 to $35. Foreign transaction fees explore if you use the card outside the United States. The total cost of using a Netspend card depends heavily on how you use it. Someone who receives direct deposits, never withdraws cash, and pays their credit card bill in full each month will pay little to nothing. Someone who reloads frequently at retail locations and uses out-of-network ATMs will pay significantly more.
How to Open a Netspend Account
Opening a Netspend prepaid card is fast and requires minimal information. You can start the process online at Netspend.com or through their mobile app. You will need your Social Security number, date of birth, and a valid government ID. Netspend performs a soft credit check (which does not affect your credit score) and a background check through ChexSystems, a banking verification service. Most people are approved within minutes.
Opening a Netspend credit card takes longer because it involves a hard credit inquiry (which does lower your credit score slightly) and underwriting. You will need the same basic information, plus proof of income or employment. Approval can take several business days. Once approved, your card ships to your address, usually within 5 to 10 business days.
Both products require you to fund the account before you can use it. For a prepaid card, you load money. For a credit card, you receive a credit limit and can begin charging when ready once the card arrives.
Building Credit with a Netspend Credit Card
A Netspend credit card reports your payment activity to Equifax, Experian, and TransUnion. This means your payment history becomes part of your credit file. If you make on-time payments, your credit score can gradually increase. If you miss payments or pay late, your score will drop and negative marks will stay on your report for seven years.
The credit limit on a Netspend credit card for new cardholders is typically low — often $300 to $500. This is intentional. A low limit reduces the lender's risk while you prove you can manage credit responsibly. After several months of on-time payments, Netspend may increase your limit. A higher limit gives you more borrowing room and can also help your credit score (because it lowers your credit utilization ratio, which is the percentage of your available credit you are using).
To build credit effectively with this card, charge small purchases you can afford to pay off in full each month, then pay the full balance before the due date. This shows lenders you can borrow and repay reliably. Avoid carrying a balance just to "build credit" — the interest you pay is not worth the modest credit score gain.
Comparing Netspend to Other Options
If you want a prepaid card without credit reporting, Netspend competes with Chime, Green Dot, and Walmart's MoneyCard. These products are similar: you load money, spend it, and pay fees for certain features. The main differences are fee structures and which features are free. Compare the specific fees you will actually pay based on your habits rather than comparing headline features.
If you want to build credit with a low credit limit, Netspend competes with secured credit cards from banks like Capital One and Discover. A secured card requires you to deposit money as collateral (usually $200 to $2,500), and your credit limit equals your deposit. Netspend's credit card does not require a deposit, which makes it easier to open. However, secured cards from traditional banks often have lower APRs and better credit-building track records. Compare the APR, monthly fee, and credit reporting practices before choosing.
If you have no credit history and want to build it, you might also consider a credit-builder loan from a credit union. You borrow a small amount (usually $500 to $1,000), make monthly payments, and the lender reports your payments to credit bureaus. This approach often costs less than a credit card and builds credit just as effectively.
Common Mistakes to Avoid
The most common mistake is not tracking fees. Netspend's fee structure is transparent, but fees add up quickly if you use multiple paid features. Before opening an account, calculate what you will actually pay based on your expected usage. If you plan to withdraw cash frequently from out-of-network ATMs, the withdrawal fees alone may make the card uneconomical.
A second mistake is treating a Netspend credit card as information programs. The credit limit is small, and you must repay what you borrow. Charging more than you can afford to pay back in full will result in interest charges and a growing balance. Use the card only for purchases you would make anyway and can pay off within a month.
A third mistake is ignoring your credit report after opening a credit card. Even if you pay on time, errors can appear on your report. You can check your credit report for free once per year at AnnualCreditReport.com. If you see errors, dispute them with the credit bureau.
Frequently Asked Questions
Can I use a Netspend card to pay bills online?
Yes. Both prepaid and credit cards work for online bill payments anywhere Visa or Mastercard is accepted. For a prepaid card, you can pay only the amount you have loaded. For a credit card, you can charge up to your credit limit. Some billers may not accept prepaid cards, so test the payment method before your bill is due.
What happens if I lose my Netspend card?
Contact Netspend when ready through their customer service line or app. For a prepaid card, your remaining balance is protected and can be transferred to a replacement card. For a credit card, the card is deactivated and a replacement is mailed to you. You are not liable for fraudulent charges if you report the loss promptly.
Does Netspend report to credit bureaus if I only use the prepaid card?
No. The Netspend prepaid card does not report to credit bureaus at all, so it does not build or damage your credit score. Only the Netspend credit card reports payment activity. If building credit is your goal, you must open the credit card product specifically.
Can I get my paycheck deposited directly onto a Netspend card?
Yes, both prepaid and credit cards accept direct deposit. Direct deposit is usually free and often waives the monthly maintenance fee. You will need to provide your employer with the card's routing number and account number, which you can find in the Netspend app or by calling customer service.
What is the APR on a Netspend credit card?
The APR varies based on your creditworthiness and current market rates. Netspend does not publish a single APR — you will see the range when you review your offer before opening the account. The APR is typically higher than traditional bank credit cards because Netspend targets people with limited credit history, which is higher risk for lenders.