A lot of us tend to spend a lot of money when buying clothes and accessories, however I have solution to make sure that we don't spend too much money and start saving! TheIntroduction of prepaid credit cards has helped me cut down on how much I spend and also to manage what I buy. It is a great idea and works just like a sim card, you only spend what you have. There are a quite a lot of companies thesedays who offer prepaid credit cards, but not all are good.
What are prepaid cards and how do they work?
Prepaid cards look like credit and debit cards and they offer the same ability to purchase products and services but with a crucial difference – you can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility.You will be give a Pin number when you purchase a card, and once money has been credited, it can be used in the same way as a debit or credit card – for high street, online or telephone purchases, as well as cash withdrawals from ATMs.
Money can be loaded onto a prepaid card by cash at a bank, Post Office, at Payzone or PayPoint terminals or via a bank transfer. However, not all prepaid providers offer all of these loading options, so you need to bear this in mind when comparing deals as some are more flexible than others.
What are the advantages of prepaid cards?
The main advantages of prepaid cards include:- Availability - there are no credit checks, which means you can get a card without worrying about your credit history. All prepaid card providers will carry out an identity check to confirm you are who you say you are.
- Control - prepaid cards are an ideal way to budget for yourself or help to manage your children's spending. Like a credit card you get a full breakdown of spending on the card so you can see what has been purchased, who from and when.
- No debt risk - with a prepaid card there is no chance of spending too much as you are limited to the amount you put on your card.
- The card for travel – prepaid cards are a good option if you are going overseas. They are popular with students heading off on gap years and children who go abroad on school trips as parents can load them up here in the UK. However, the benefits are not restricted solely to young travellers - any holidaymaker can take advantage: prepaid cards offer a good alternative to travellers' cheques. They are safe and you will probably be offered a better rate of exchange as you spend.
What are the disadvantages?
The main disadvantages of prepaid cards are the costs and fees associated with using them. Some of the potential costs to look out for include:- Card application fee – some providers levy an application fee but read the small print as it may be waived if you load more than a certain amount onto the card.
- Monthly service charge – check to see if there is a monthly subscription fee. If there is what services do you receive for this charge? For example, does the prepaid card company provide free top-ups, an online service, a helpline or other additional services for you, funded by this fee?
- Customer call helpline – calls to the customer helpline can be expensive so it's worth noting whether you will be charged at a premium rate, national rate or standard rate.
- Credit card or cash loading fee – some providers charge you every time you put money onto the card.
- Deposit fee – even if your card provider doesn't charge you for making a top-up, if you put money onto the card in a bank, the bank may charge for the service. If such a fee applies use an alternative way of loading up your card – if there isn't a convenient alternative it's probably worth considering a card from a different provider.
- ATM withdrawal fee – some prepaid cards are treated like credit rather than debit cards when it comes to making cash withdrawals. If you will be charged a fee for withdrawing money from an ATM it is advisable not to use the card for this purpose. And even if you are not charged for making withdrawals in the UK, check what the rule is for foreign transactions as you may be charged if you withdraw money from a cash machine abroad.
- Purchases and internet transaction - Is there a charge when you purchase goods on your card and do these vary for online transactions? Again, as with withdrawal fees, these costs may be higher if the transaction is made overseas.
- Account termination fee - is there a charge for closing your account?
- Card replacement – one of the attractions of prepaid cards is the security they offer, but if you lose your card or have it stolen, some providers will charge for a replacement.
- Card renewal - like a credit or debit card, a prepaid card will have an expiry date so check to see if you will be charged for a renewal.
- Inactivity fee – some firms charge a small sum if the card is not used for a defined period of time.
Below I have compiled a list of the most popular prepaid credit cards. Each one has its own benefits.It makes sense to look for a prepaid card with low sign-up, annual, monthly and top-up fees. However, there are other things to consider when deciding on the right card for you:
- What are the reload options - can you pop into a local bank, can you reload online, etc? If you can only top your card up at the place you bought it from, it won't be much use if you're heading off abroad.
- Can you manage the card online – as with many debit and credit card accounts, some prepaid cards allow you to view transactions and usage online, which can be very useful.
- If you want a prepaid card because you're going travelling or to work abroad, it's worth opting for a provider that offers a 24-hour service as you never know when you might need to top it up, and if you are in a different time zone, it may be difficult to load your card up during UK working hours.
- If you want two cards for the same account, look for a provider that doesn't charge a fee for an additional card.
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
FREE | O2 Cash Manager Prepaid Card*  *O2 Customers Only | | | | |||
| If you are an O2 Customer, then this is the one card which is truly 100% FREE to buy, load and use in the UK. You should consider getting one even if you do not want to use it straightaway as it costs you absolutely nothing. Not even a deposit to pay actually - so truly 100% Free | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
GENERAL PURPOSE | CashPlus Gold Prepaid MasterCard (ActivePlus)  | £4.95 | £4.95 | POS: Free ATM: £0.99 | POS: +2.99% ATM: £3.00 + 2.99% | Post Office Bank Transfer Salary Transfer |     |
| This multi award winning prepaid card comes with free purchase protecton, an awesome credit builder feature and with more than 400,000 cards issued, consumers obviously like what they get with the Cashplus Gold Prepaid MasterCard. Excellent for everyday use. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
TRAVEL | CaxtonFX Prepaid Currency Card | £0.00 | £0.00 | POS: FREE or £1.50 ATM: €2.00/$3.00 | POS: £0.00 ATM: £0.00 | Internet Bank Transfer SMS/Phone | |
| If you are looking to travel, then a travel card can save you upto 10% on your currency conversion. So if you exchange £1000 at your bank and get €1040, with your Caxton FX Prepaid MasterCard, you'd typically get €1082 - so that is an additional €42 Euros. Furthermore, when used outside the UK, there are no usage fees at retailers or withdrawal fees at ATM. Cards available in GBP, EURO and USD. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
MONEY TRANSFER | Freedom Eagle Prepaid Card  | £9.99 | £0.00 - £3.95 based on tariff | POS: £0.00 to 2.75% ATM: 1.50% | POS: £1.00 to 2.75% ATM: £2.25 | PayPoint Post Office Bank Transfer | |
| An excellent product available to all with additional prepaid cards and three card options, there is 100% acceptance and approval and card to card transfers. Comes with free extended warranty, free 30-day purchase protection and free 30-day price protection. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
GAMING | Splash Prepaid Card  | £5.00 + £4.95 Annual Fee | £0.00 | POS: 2.5% ATM: £1.50 | POS: 3.5% ATM: + 2.5% | PayPoint Post Office Internet Bank Transfer | |
| The Splash Prepaid Card is the original prepaid card and was designed for internet usage and has long been a favourite for gamers online. Available to all; you can get a Splash Prepaid Card even if you are under 18 as long as you have parental consent. So irrespective of which virtual world you live in, the card is very real. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
PAYROLL | CashPlus Gold Prepaid MasterCard (ActivePlus) | £4.95 | £4.95 | POS: Free ATM: £0.99 | POS: +2.99% ATM: £3.00 + 2.99% | Post Office Bank Transfer Salary Transfer | |
| Use as a payroll and expenses card with the confidence of 400,000 issued cards and over £450 million loaded on to the card. Your money is safe and secure and accessible 24/7. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
PAYROLL | Freedom Eagle Prepaid Card | £9.99 | £0.00 - £3.95 based on tariff | POS: £0.00 to 2.75% ATM: 1.50% | POS: £1.00 to 2.75% ATM: £2.25 | PayPoint Post Office Bank Transfer | |
| Another product that is making headlines in the payroll and expenses space. No monthly fees if you prefer a Pay As You Go payroll card option. Comes with free purchase protection too. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
ANONYMOUS | Splash Prepaid Card | £5.00 + £4.95 Annual Fee | £0.00 | POS: 2.5% ATM: £1.50 | POS: 3.5% ATM: + 2.5% | PayPoint Post Office Internet Bank Transfer | |
| What you do with your prepaid card is your business and the Splash Prepaid Card ensures that. Available to all and even those under the age of 18 with parental consent but load your card and use it as you see fit. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
YOUTH | Neon Prepaid MasterCard | £9.99 | £0.00 | POS: Free ATM: £0.99 | POS: £0.00 + FX ATM: £2.00 + FX | Phones4u Stores Bank Transfer Post Office Internet | The definitive youth prepaid card |
| The award winning youth prepaid card with 20% Cashback through Online shopping, 1% Cashback on Mobile Phone Top Up and Free to load via BACS and in Phones4u stores. Availablt to everyone above the age of 13 with parental consent. Very funky indeed. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
GIFTING | Bread Prepaid MasterCard  | £7.50 | £0.00 | POS: 2% ATM: £1.50 | POS: 2% ATM: £1.99 | Post Office PayPoint Bank Transfer | |
| Looking to Gift a Prepaid Card - well the Bread prepaid Card is an excellent gift choice as you can get it for yourself or gift it to someone else. Comes with Cashback Shopping and the usual beneits of prepaid cards including no credit checks and no bank accounts necessary. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
SHOPPING | Virgin Money Prepaid Card  | £9.95 | £4.75 | POS: £0.00 ATM: £1.50 | POS: 2.95% ATM: £1.50 | PayPoint Post Office Internet Bank Transfer | |
| Get money off where it matter most - on holidays, gyms, wine and more. Free for Shopping at retailers and great savings at Currys, Debenhams, Sainsbury's, B&Q and Boots and more. First month free with virgin media, 10% off at virgin wines, a month off at virgin active, 10% off at virgin holidays, 20% off at virgin experiences and 10% off car, home, pet and annual travel insurance. Need we say more? | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
SHOPPING | O2 Cash Manager Prepaid Card* *O2 Customers Only | Free | £0.00 | POS: Free ATM: Free | POS: 2.75% ATM: 2.75% | Internet Debit Card | |
| Free! Free! Free! - if yiu are an O2 Customer and want a card that costs nothing to shop online and are a Visa fan, then this is the card for you. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
BAD DEBT or | Freedom Eagle Prepaid Card | £9.99 | £0.00 - £3.95 based on tariff | POS: £0.00 to 2.75% ATM: 1.50% | POS: £1.00 to 2.75% ATM: £2.25 | PayPoint Post Office Bank Transfer | |
| Bad debit, Poor Credit History, No Bank Account - all that is irrelevant when you apply for a Freedom Eagle Prepaid Card because there is 100% acceptance and approval. The Credit Booster is an excellent feature to improve ones credit history too. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
VISA | O2 Cash Manager Prepaid Card* *O2 Customers Only | Free | £0.00 | POS: Free ATM: Free | POS: 2.75% ATM: 2.75% | Internet Debit Card | |
| If you are looking for a Visa Prepaid Card and are an O2 customer - look no further than the 100% Free to buy, load & get O2 Cash Manager Prepaid Card. Use everywhere that Visa is accepted - 14 million+ global retailers. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
MASTERCARD | CashPlus Gold Prepaid MasterCard (ActivePlus) | £4.95 | £4.95 | POS: Free ATM: £0.99 | POS: +2.99% ATM: £3.00 + 2.99% | Post Office Bank Transfer Salary Transfer | |
| 400,000 cards issued, £450 million loaded and the only Gold MasterCard prepaid card in the UK - this is the top MasterCard product to get. Use at 29.5 million retailers worldwide & 1.5 million ATM's that accept MasterCard. | |||||||
| Card Category | Issuer/ Card Design | Card Fee | Monthly Fee | POS & ATM Fee | Reload Options | Overall Rating | |
| UK | Abroad | ||||||
MAESTRO | Splash Prepaid Card | £5.00 + £4.95 Annual Fee | £0.00 | POS: 2.5% ATM: £1.50 | POS: 3.5% ATM: + 2.5% | PayPoint Post Office Internet Bank Transfer | |
| The Original Prepaid Card for all Maestro Fans. | |||||||
No comments:
Post a Comment