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Compare Prepaid Credit Cards With Money Pug
- Money Pug allows you to compare all the best prepaid credit cards available on the market, so you can find the prepaid credit card that is right for you. No matter your reason for wanting one of these everyday cards, you can find exactly the card for you when you use our handy comparison service.
Who Might A Prepaid Credit Card Be A Good Idea For?
A prepaid credit card is an excellent choice for:
Teenagers learning responsibility and managing their own finances for the first time.
Anyone with a spending habit that can quickly get away from them.
People who do not have a bank account, and/or have a poor credit rating.
For anyone travelling abroad.
What Are the Benefits of a Prepaid Credit Card?
There are many benefits to a prepaid credit card, including:
- The chance to keep a tight control on your spending and avoid overspending each month.
- The chance to buy in shops without having to carry cash around, even if you do not have a bank account.
- The chance to shop online even without a traditional debit or credit card.
How Much Do Prepaid Credit Cards Cost?
A wide range of fees are associated with prepaid credit cards. There is usually a charge for getting the card in the first place, called the application charge. Prices range between zero and around £10. Keep an eye out for special deals that waive the fee if you load them with a certain amount, or have other special offers. Sometimes, you can get a prepaid credit card for free so keep your eyes open.
Some cards also charge:
- Inactivity Fees Don’t be caught out by the fact that certain prepaid cards may charge a small monthly fee if your card is not used for a period of time (e.g. three months). Make sure you keep your card running to use it in the most cost effective way.
- Redemption Fees There may also be a fee involved in reclaiming any cash unused from your card. On average, it will cost around £10, so how much money there is left on the card will dictate whether or not it makes financial sense to reclaim it.
- Fees can quickly add up so be careful when comparing and choosing your prepaid credit card and make sure you are happy with and aware of all the hidden costs.
PrePaid Credit Cards FAQs
- A prepaid credit card is simply a card, like a debit or credit card, that you can use to pay for goods and services. Unlike a debit card, however, a prepaid credit card does not take money direct from your current account. Unlike a traditional credit card, you will not be borrowing money. With a prepaid credit card, you will be spending money that you yourself have already loaded onto your card. If you need to add more to your card, you can simply top them up as you would a pay-as-you go mobile
When you choose and buy a prepaid credit card you will decide how much money you want to put on it. There is usually an upper limit for how much you can load onto the card. Since this sort of card is generally for everyday spending, you probably won’t have to put too much on it. You should think of these cards as an alternative to carrying around cash. You can generally use them in most shops – anywhere that will accept other forms of debit or credit card.
Some prepaid credit cards as mentioned above, can can also be used to rebuild your credit history if you have a poor credit rating. If you have been turned down for a debit or credit card because of this then one of these cards may be for you. There is usually a monthly fee and providing you pay it on time every month, your record will be improved. This can help you get back on track – but make sure you do not miss a payment of you will be right back to square one.
You can top up your prepaid credit card in person by going into the Post Office or a Paypoint. You can also top them up in shops which accept them. With some prepaid credit cards you can top them up by telephone or with an SMS text, and sometimes you can have your wages paid directly onto the card. Those with a bank account will often be able to set up a direct debit or standing order to load up the prepaid card regularly. Not all of these methods are accepted by all cards, however, so it is important to check out which options are offered before choosing a particular prepaid credit card.
Yes, some let you take out additional cards for other people, e.g. family or friends. They can only spend the money added to their own card.
No, they do not let you borrow money in any way. You can only spend what you have already added to the card.
We include every UK prepaid cards you can load with pounds sterling from our panel of providers. . They are all either directly regulated by the Financial Conduct Authority. or providers that are partnered with a company regulated by the FCA.