About Prepaid Credit Cards

Prepaid credit cards are an option you have when you are suffering from credit card score problems or you are too young to get a credit card in the UK. Anyone under the age of 18 is not able to get a credit card unless there is an authorized signer such as a parent on the account. For that reason many of the parent’s turn to the prepaid credit cards. There are several companies in the UK that offer these cards no matter your situation. Those with bad credit find it hard to get a line of credit because of the risk. To save themselves some of the very high annual percentage rates offered on regular credit cards, these individuals will get the prepaid cards.

So what does a prepaid card do and what are the companies that have them?

Prepaid cards allow you to put a specific amount of money on the card. This amount is limited by the issuing company and you. For example most prepaid cards will allow 250 pounds as the limit or possibly up to 500 pounds.
When you use the card you are showing companies you are responsible enough to have a credit card. Therefore they are going to report back to the credit agency with good favour.
Prepaid credit cards are usually used for one purpose when you have poor credit, and that is to repair the credit.
On the prepaid credit cards there are no interest payments, which means you are saved from incurring more debt than you may already have. There are fees such as the reload fee, transaction fees and start up fees. These fees are usually smaller than any interest rate you could get.
The prepaid card is like a debit card. In other words you put the amount you would like to have on the card and use it until it is empty. If there is no money on the card you can’t use the card for purchases. It allows more control.

Virgin, Entropay, Capitol One, Cash Plus, and EasyKard are all companies offering prepaid credit cards to those in the UK. It is best when choosing even the prepaid credit cards that you will compare all the cards on the market. There are websites of course like this one that allow you to compare your options. Don’t just shop for prepaid cards though. You can still look at regular cards to see if there is something better in that section. The prepaid cards are not going to allow for any rewards programmes. They also don’t allow for balance transfers. Many individuals with bad or poor credit need to have their credit transferred to a better card.

As for the student prepaid credit cards, these are helpful for high school students or college students that need a little help. For example, if you need to buy a book and the money is coming from your parents they can transfer money to the account rather than sending it by mail. Prepaid credit cards do have many advantages which makes them important to have.