NetSpend does not report to credit bureaus in any capacity. NetSpend is a prepaid debit card program that allows cardholders to pre-fund their accounts with debit card capabilities. A NetSpend card is often safer and more convenient than carrying cash, but it still allows the cardholder to make in-person and online purchases.
NetSpend's Account Opening Requirements
NetSpend does not require a Social Security number to open an account. When enrolling on NetSpend's website, a person must provide his name, address and email address. The following screen then requires the creation of a username, password and security question. Once these two processes are complete, the cardholder receives a card in seven to 10 business days, and he can fund the account at any time.
The lack of a requirement to enter a Social Security number makes a NetSpend different from a credit card or a traditional debit card. Both credit cards and traditional debit cards require applicants to provide a Social Security number and date of birth. Credit card providers run credit checks prior to approval, often determining the amount of credit they can provide. This information is directly reportable to the credit bureaus, regardless if they approve the card or not.
Credit reporting bureaus maintain credit reports specifically through Social Security numbers. If NetSpend never requires cardholders to supply this information, it cannot forward any information to the credit bureaus.
Since NetSpend accounts are prepaid by the cardholder's own funds, a reportable offense would be rare. The only scenario that might cause issues is if a cardholder enrolls in the overdraft protection service. If the cardholder creates a sufficiently large negative balance and does not repay within the designated period, NetSpend has the right to submit his information for collections. There is no mention of reporting to any credit bureau or agency under any circumstance in NetSpend's cardholder agreement as of 2015.