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Prepaid Credit Cards compared
Your guide to all Prepaid Cards
Prepaid Cards are suitable for people with any type of credit score and are useful in times when you need a debit card but you do not have a bank account.
What to look for in a good prepaid card
In order to resist temptation, considering one of the many prepaid cards which are available from card companies like MasterCard and Visa can allow you to keep what you spend on plastic under a tight leash.
However, with the sneaky surcharges lurking underneath the surface, it is important to ensure that intensive scrutiny of the different services which are available for consideration is done. Thinking about what you use your prepaid credit card for the most can prevent you from constantly getting charged with fees where it hurts.
One of the things which may be wise avoiding are monthly subscription fees. There are some prepaid cards which come with a charge that is levied to the balance of your account at the end of every month. This can be an inconvenience to you – but it could be worth it if it saves you spending £1.50 on your prepaid credit card every time you are looking to withdraw some money from a cash machine near you. As you can imagine, a fee in one place usually cancels out a charge in another.
Most prepaid cards will charge an additional percentage fee on top of the amount of money you are spending in order to process the transaction. For example, a £10.00 hooded sweatshirt could soon become £10.30 should your prepaid credit card have a transaction fee of 3%. Ideally, you want this transaction fee to be as low as possible (if not non-existent). If you have a prepaid credit card as your sole source of plastic, and you spend £1,000 on it a month – you could find that £30 of charges at the conclusion of every month can be an expensive cost to justify.
There are a cluster of cards that are suited for different people, those who want a payment method when they are abroad; teenagers who are looking for the ability to spend their pocket money online; those who have a poor credit background but need a viable way to perform their shopping; and those who are simply looking to get the best deals when they are having a browse on their computer - in the comfort of their own home.
With some prepaid credit cards even offering cashback to some consumers, doing the homework evidently pays if you find the right prepaid credit card for your own individual needs.