Tips on Choosing a Prepaid Card
If you have a bad credit history and are in need of a credit card, or you simply want an aid to prevent you spending over your budget, a prepaid card is a good solution.
As with credit and debit cards, there are many being offered on the market, and while they are open for anyone to purchase, some are better than others.
Follow these tips on what to look for when choosing a prepaid card.
Some prepaid card providers charge for the application of a prepaid card - this can vary between £5 to around £30.
It is unlikely you will have to pay more than this, and it is worth investigating if the provider refunds this once you load you funds onto the card.
While some cards are free to apply for, the provider may be making their money in other ways by charging high monthly charges, or transaction fees, which could add up to cost more than what other cards cost for the initial purchase price.
Monthly Charges and Transaction Fees
If you are looking to use a prepaid card just for one month then high monthly fees will not affect you. However, if you are looking to purchase a prepaid card for the long term this will have to be considered.
For regular use you should investigate cards with no monthly charges, or a small set charge.
If the later applies ensure you are also not charged per transaction too, as for regular use this could reduce the effectiveness of the card to help you budget and stay out of debt, making your money not stretch as far.
The majority do charge for using an ATM, so if you do need to retrieve money then ensure you either do it through a debit card from your actual bank account, or limit the amount of times you do sp from your prepaid card.