Prepaid Credit Cards look like credit cards, but work differently. You can use them everywhere Maestro, MasterCard or Visa is accepted(depending on the type of prepaid credit card but you can only spend up to the available balance on your card.
With prepaid credit cards, you load funds onto your card and use that money to make purchases and get cash - you are not borrowing money from a bank or other financial institution.
Also known as a Prepaid Debit Card or just as a Prepaid Card, a prepaid credit card is similar to a regular credit card, except that there is really no credit limit as such and that funds available on the card are actually the funds that you have loaded on to the card. So essentially a prepaid credit card is not really a credit card at all..
Prepaid credit cards typically come with a whole set of fees attached typically relating to issuance, loading, usage and cash withdrawals. Depending on the plan you choose, you can get a pay monthly or pay as you go prepaid credit card. These cards are especially useful for those with bad credit or a non existent credit history and in such cases, the benefits of prepaid credit cards far outweigh any of these potential extra charges.
The important thing to remember is that a prepaid card does not give you access to credit - so you do not really need to undertake and pass any credit checks as such. This also means that even if you have bad credit, a non existent credit history or even have CCJ's, you are still more than likely to get approved for a prepaid credit card.
However, as with most financial services and products, you still need to provide details to verify your identity and your address (typically a passport, driving licence and a utility bill with your UK address should suffice). Most UK prepaid card issuers can verify your details online to provide you with instant approval and your prepaid credit card would come through in the post in 7-10 days.
well the main benefits are that prepaid credit cards are available to all regardless of their financial status. There are no credit checks and no bank accounts are necessary to apply for these prepay credit cards. Prepaid Credit Cards allow you to
spend without the fear of debt or fraud at millions of retailers online or on the high street.
You can even use them to withdraw cash from ATM’s. Prepaid cards can be MasterCard, Maestro or Visa branded. MasterCard prepaid cards can be used to make purchases in-store, online and over the phone at over 28.5 million locations worldwide and to make withdrawals at over 1 million ATM's worldwide
Click here for more detailed information on the benefits of prepaid credit cards.
As there is no credit on Prepaid Credit Cards, you cannot get into debt but also there is no interest payable on the card which makes prepaid credit cards an outstanding proposition for all. You can get prepaid credit cards for all kinds of things which include
- Travel
- Shopping
- Money Transfer
- Gaming
- Payroll
- Banking (if you do not have a bank account)
and much much more.
Visit out consumer prepaid credit card comparison section to find the best prepaid credit card to suit your needs. If you wish to use a prepaid credit card for your business, visit our business prepaid credit card section.
