Prepaid
Credit Cards

What are prepaid credit cards?

A prepaid credit card can be used for:

Buying groceries and fuel;

Paying for goods and services abroad;

Topping up your mobile phone;

Internet shopping;

Paying utility bills;

Transferring money to friends and family, both in the UK and overseas;

Withdrawing cash from an ATM.

What are the benefits of using a prepaid credit card?

Applicants do not have to go through a credit check;

They are an ideal budget solution for yourself or your children allowing spending to be monitored, and they offer statements to provide a full breakdown of card transactions;

You cannot get into debt with a prepaid credit card as there are no overdrafts or credit limits;

Most providers offer prepaid cards that are accepted at ATMs worldwide;

Similar to store gift cards or a prepaid mobile phone SIM, prepaid credit cards do not allow the balance to be exceeded when making purchases;

Users are able to load money onto the cards at a number of places which include banks, Post Offices, at Payzones or PayPoint terminals, bank transfers, through your employer, or even using credit cards;

Purchases can be made in the same way as any other debit or credit card, using chip and pin technology or signature. The transaction amount is immediately deducted from your card on completing the transaction.

What should I be aware of with prepaid credit cards?

Before signing up to a prepaid card you must ensure you have read the terms and conditions, noting any fees involved. Some providers charge a fee for opening an account, but this amount is later credited to the card. Some cards will also charge to withdraw cash. You need to factor these costs in before deciding if a prepaid card is right for you.