What are Prepaid Credit Cards?

Prepaid credit cards (or debit cards as they are more accurately called) are relatively new to the UK.

The cards work in a way which is similar to mobile phone top up cards.  You put money onto your card and then it is available to spend.  When you go into a shop, you use the card just like a regular credit or debit card.

Providers of these cards include:

Extreme Cred

Who Can Apply for Prepaid Credit Cards?

Anyone can apply for these cards and acceptance without credit checks is often guaranteed.  This is because you cannot spend more than the amount of money which you have prepaid onto the card.

The cards can be ideal for:

• Anyone with an adverse credit history who may have trouble obtaining a credit card
• People on low incomes, the self employed or the unemployed who may not be able to meet the lending criteria of credit card companies
• Students who need to make sure that they do not overspend
• Children (13 or over) who can sometimes obtain a card as a secondary card holder
• Travellers who want to take limited funds with them whilst they travel
• Parents who may want to get a card for their children which the parents can top up as necessary.

How Do You Apply For Prepaid Cards?

These cards can usually be applied for online.  You will need to have your contact details and one or more kinds of proof of identity e.g. passport or driving licence.

Click on the following links for further details:

Extreme Cred

Questions to Ask

• What charges are there?  Typically there will be a monthly fee and possibly a sign up fee as well.
• How can I top up my card?  Some cards offer the opportunity to top your cards up online, by telephone or in person.
• Can I use the card Worldwide?  Usually you can use the card across the World just like a credit card.

© Local Service Guide Limited Prepaid Credit Cards with No Credit