Prepaid Credit Card Issuers

Advantages of prepaid credit cards;
- Ideal for those who can't control their spending; you can only spend what
you put on the card, there is no risk of getting into debt.

- Prepaid cards are ideal for kids under 18 who can't legally obtain a credit card;
you will be able to purchase goods wherever credit and debit cards are accepted;
high street, telephone or on the internet.

- Since there is no credit scoring, approval for a prepaid credit card is guaranteed
provided you meet some basic requirements.

- Ideal for travelling; you can spend or withdraw cash from ATM machines abroad
with your prepaid card.

Disadvantages of a prepaid credit card;

No influence on credit rating
Because there's no borrowing involved, using a prepaid card does not demonstrate
your ability to manage debt.

As a result, its use will not help you build good credit.
If your aim is to establish or improve your credit rating, you're better off applying
for a normal credit card.

Charges
The following are the charges that may apply depending on card issuer:

• Application fees; most prepaid credit cards will incur an application fee, typically
of £5 - £10.

• Monthly fees; some issuers charge a monthly subscription fee, the fees vary
depending on issuer.

• Top-up fees; you may be charged each time you put money on the card.
If the fee is flat, you can reduce your costs by topping up in huge amounts
of money.

• ATM withdrawal fees; you may also be charged for withdrawing money on an
ATM machine. If using your card in the UK, you can avoid this charge by only
topping up the card when you need to use it rather than adding the cash that
you may need later on.