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Pre-paid Credit Cards
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Pre-paid Credit Cards - what is this?
Pre-paid credit cards, both pre paid visa and pre paid mastercard, are a new concept. They are secure and anonomous credit cards that can be credited before you spend the
money so you never owe money and your balance is always in credit. The principle is the same as phone cards,
you put the money on before you make calls. The pre paid mastercard and visa credit cards will be available in denominations of £10, £20, £50 and £100.
Who can benefit from a pre paid credit card?
The prepaid credit cards are aimed at people without credit cards or bank accounts who still want to shop online.
People with bad credit or people with low credit scores such as students and younger people who are below the legal borrowing age of
18 can apply for a card. For pre paid credit cards there are no credit checks so ccjs, defaults and arrears, in fact none of your credit history is taken into
account. Since you do not borrow money on the prepaid card, the card issuer has little or no risk that you might fail to
make repayments.
What is the advantage of a prepaid credit card?
Many transactions are made more easily with a credit card rather than cheque or cash. For example online internet purchases, some of which cannot be made without a credit
card. It is a safer way of carrying around money, especially if you are intending to make a large purchase because you don't have to
carry the cash in your pocket. You also don't need to wait as you would for a cheque to clear for mail order and phone companies.
You cannot borrow more money than is on the card so there is no risk of you getting into debt or bad credit.
What are the disadvantages of a prepaid credit card?
The major disadvantage of UK prepaid credit cards is the lack of choice or availability - at the time of writing there is only one or two main companies
offering prepaid credit cards and you have to pay at least £99.00 up front for the facility.
This price may be a worthwhile investment for some people, but most people tend to look for a prepaid credit card due to their bad credit history and
difficulty in obtaining a "normal" credit card.
If you're in this situation, the answer might be to apply for a Capital One credit card, a "normal" credit card from Capital One, which has a flexible underwriting criteria
enabling people with bad credit to apply. Click below to apply for a Capital One credit card if you have bad credit history.
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Credit Cards for people with bad credit(please note the adverts below are NOT for prepaid credit cards): |
Capital One Credit Card
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The Capital One Credit Card - apply online for a Platinum, Premier or Classic MasterCard from Capital One.
60 second response to find the card to suit your financial needs. From building up from a bad credit history to £25,000 credit limit.
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