Prepaid Credit Cards – Your Questions Answered

We are currently living in tough times and many of us are having difficulty getting credit when we need it. Credit card companies are tightening their requirements for giving out their products so many of us are having to find answers to certain financial problems. For example, in this Online world who do we make a purchase from a website if we don’t have access to a credit or debit card?

One answer to the problem which is proving very popular due to its easy availability and usefulness is the prepaid credit card. If you are looking for information on this extremely handy little piece of plastic then you have come to the right place.

Who Can Apply For A Prepaid Credit Card?

They can be applied for by anyone and because there are no credit checks carried out you have no worries of being rejected.

Can I top it up from my Bank Account?

Yes, you can also top them up online, at your local post office and wherever you see the PayPoint logo.

Can I Use A Prepaid Card Just Like Any Other Credit Card?

Yes, you just have to load the card up with your own cash and you can use it in exactly the same as you would a normal Visa or Mastercard. The cards only contain the money you put on them so any damage done if the card is stolen is limited unlike with regular plastic and you don’t have to worry about the extremely high regular credit card interest rates.

How Much Do They Cost?

Prices vary depending on the lender and the particular card you choose but expect to pay around £10 to buy your card in the first place and then another fee for each transaction. The price of top ups depends on where you get them, most are free but you may be expected to paya  small fee using certain methods.

Can I Use It To Buy Goods On The Internet?

Yes, the prepaid credit card actually has some advantages of some other methods of paying of products online. Given that that there is only a limited amount of money on the card there is very little financial damage that can be done to you in the event of fraud.

Does It Have Any Benefits Over A Debit Card?

The prepaid card is accepted in more places so having one will give you greater variety in the number of places you can shop. Also, you can get overdrawn with a debit card which can lead to additional expensive charges.