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Do you need a prepaid credit card?
With credit card companies tightening their belts and increasing the charges on a regular basis. Not everyone fits the profile for a credit card so what is the alternative apart from having a debit card linked to your bank account.
So we know not everyone can qualify for a credit card. Chances are reduced with past credit problems such as not paying your credit cards on time, or a loan, bankruptcies, repossessions, or even late payments to mortgages, some people do not meet the stringent qualifications set forth by credit companies to receive a line of credit.
Well Bank accounts with debit card facilities have been a part of everyday life due to no monthly bank charges but now it seems that this may be the end to free banking, with First Direct being one of the first banks to charge?
However, there is a way to get your foot in the credit doorway without the best credit history, a prepaid credit card .
Will a prepaid credit card rebuild by credit rating
If you live in the US then yes, there are prepaid credit card plans that are linked with credit builder that can build or rebuild your credit rating and credit score.
If you live in the UK then no there are no prepaid credit cards at the moment that can do this.
Why get a prepaid credit card work?
Whether making a utility payment, completing an online purchase, or renting a car, you can use a prepaid credit card just as you would a standard credit card. Many branded lenders offer prepaid Visa, MasterCard or Maestro cards and they look exactly like the regular credit cards. Neither you nor the retail clerk will be able to tell the difference.
The concept of prepaid credit cards is very simple. You complete an online application to open an account and pay the card this ranges from £5.00 to £10.00. You then "pre-pay" the card with cash up front, similar to a pre-paid mobile top up card. Once your card is loaded with cash you can use your prepaid Visa, MasterCard or Maestro card anywhere these cards are accepted.
To receive a card, fill out the lender's application and open an account. You are required to by some lenders to provide ID such as a passport this is not a credit check but to confirm your ID as required by the FSA. Some prepaid cards no not require ID this is due to a restriction on the amount of money you can load up to on your card, which is a maximum of £500.00. Once you they have confirmed your ID and you have paid the application fee and loaded funds on to your card you can use your card to charge items up to your balance limit.
Prepaid credit card are still a new concept in the UK but branded card issuers are slowly catching up to the American market and over the next year we will see additional features and solutions to people that have credit problems. There are already prepaid credit cards that offer cashback when you shop online at selected retailers, if used on a regular basis can cover part / all of your charges and make you money. Are you travelling aboard want a safer way to carry cash? Use a Prepaid MasterCard, Prepaid Visa or Maestro card when travelling aboard or on a business trip aboard. Control your spending, load your card before you travel to a foreign destination. A pre paid travel card is a safer and more convienient way than using cash, with a Visa you can use at over 25 million retail outlets worldwide and at over 900,000 ATM’s across the world. Before you book your next holiday check out the list below and see what you can save when you book your next holiday get discounts on flights, travel and holiday’s even insurance, Secure online application apply today |
