Prepaid Credit Card Pro's and Con's

What is it?

A prepaid credit debit card works on much the same basis as the now very familiar and popular prepaid mobile telephone. Charge with your required amount, then use as you wish. Once the prepaid credit /debit card is loaded with funds, the card holder can access areas that are often restricted to traditional credit card use, such as the internet and telephone purchases.

Requiring no credit check, the prepaid credit / debit card is available to everyone who is able to provide valid identification. The prepaid credit / debit card offers no credit facility which enables its holder to budget effectively, thus removing the possibility of accumulating spiralling debt. The prepaid credit / debit card can be used both in the UK and worldwide.

Pros

A poor credit history does not exclude applicants as no credit check is carried out. With no monthly credit bills to pay, a prepaid credit /debit card offers the flexibility of a traditional credit / debit card without the interest payments. Book a holiday or purchase online, allocate a monthly budget to household members, pocket money for the family members - funds can be spent in a retail outlet, online or over the telephone. Funds can also be withdrawn at any ATM.

Cons

The prepaid credit / debit card does attract monthly and transaction fees. With no credit facility, only the funds available on the card can be spent. Because no credit is offered, the prepaid credit / debit card will not help rebuild credit files.