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  • FIRST POST
    • dazzaofdagenham
    • By dazzaofdagenham 6th May 17, 11:01 AM
    • 1,044Posts
    • 359Thanks
    dazzaofdagenham
    Cashplus....long term benefits
    • #1
    • 6th May 17, 11:01 AM
    Cashplus....long term benefits 6th May 17 at 11:01 AM
    Hi
    My friend at work did have a bad credit history and a while ago, about 20 months took a cashplus card.

    I'm not convinced that these are any good, he took the credit builder loan from them and paid it back and now continues to pay 5.95 monthly fee and sometimes uses the overdraft facility...75p a day.

    Over the 20 months he's had this card...we added up the costs and he's paid just over 220 pounds for this facility.

    Now I'm thinking this is a waste of money.

    Thoughts please
Page 1
    • eskbanker
    • By eskbanker 6th May 17, 11:43 AM
    • 5,464 Posts
    • 5,270 Thanks
    eskbanker
    • #2
    • 6th May 17, 11:43 AM
    • #2
    • 6th May 17, 11:43 AM
    According to http://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards#cashplus, this is intended for last-resort use for a year to demonstrate fully paying off a loan:
    Is it really worth it? Well, it's an expensive way to improve your credit, but after 12 payments, it should show on your credit history as a fully repaid loan agreement. This should make you a more attractive customer to many companies, hopefully meaning you can apply for better credit-card and loan deals.
    Once the 12-month loan is paid off then continuing to pay monthly doesn't seem sensible to me, as it's no longer a credit facility.

    Also worth noting that, according to the same MSE article, "Your payments will only be reported to Experian, not Equifax or Callcredit. This may help your record at Experian but won't have an effect on your record at Equifax or Callcredit. Keep this in mind as not all lenders check all credit bureaux before accepting or rejecting you for credit" so its effect on his credit file is limited.

    Is he monitoring its effect on his Experian credit file with a view to applying for more mainstream credit products that use Experian?
    • eDicky
    • By eDicky 7th May 17, 1:58 AM
    • 2,797 Posts
    • 1,214 Thanks
    eDicky
    • #3
    • 7th May 17, 1:58 AM
    • #3
    • 7th May 17, 1:58 AM
    I don't see any advantage in continuing to pay monthly fees for this card once the (dubious) 12-month 'credit building' period is over, when virtually anyone can have a free basic bank account with debit card, and/or use one of the fee-free prepaid cards.

    I used the version without fees until they introduced a monthly charge, when I immediately withdrew my balance. My account is still there I believe, but they don't/can't charge anything when there is no balance.
    Evolution, not revolution
    • andyt8
    • By andyt8 12th Sep 17, 7:21 PM
    • 105 Posts
    • 71 Thanks
    andyt8
    • #4
    • 12th Sep 17, 7:21 PM
    Watch out for Cashplus changing your charges
    • #4
    • 12th Sep 17, 7:21 PM
    I opened a Cashplus Freedom pre-paid debit card in order to easily send money to my nice - who I got a second card for. The "Cashplus Freedom" had no monthly fees and no usage fees.

    Well under their terms and condtions they can change your terms provided they give 60days notice. So they left a message on the online website to let me know they would change me over to a card that had a £4.95 per month fee. That was all they did - no letter to my registered home address, they knew that I did not regularly use their online website to manage the card as I simply found the balance on the card from an ATM machine outside a bank. Indeed they blocked me from using their online account management as I had not logged into it frequently enough.

    However, this did not stop them changing my account over to a monthly fee one.

    I think this is very poor service - they get you hooked on a fee free card and then change you over with just one message sent to your online card servicing account. They have my home address and I also signed up for SMS text messages about my account.

    So watch out for this company... look elsewhere for a better more open and informative service. I am closing my account after withdrawing my credit balance.
    • SnowTiger
    • By SnowTiger 12th Sep 17, 10:08 PM
    • 3,039 Posts
    • 2,008 Thanks
    SnowTiger
    • #5
    • 12th Sep 17, 10:08 PM
    • #5
    • 12th Sep 17, 10:08 PM
    I opened a Cashplus Freedom pre-paid debit card in order to easily send money to my nice - who I got a second card for. The "Cashplus Freedom" had no monthly fees and no usage fees.

    Well under their terms and condtions they can change your terms provided they give 60days notice. So they left a message on the online website to let me know they would change me over to a card that had a £4.95 per month fee.
    Originally posted by andyt8
    Coincidentally, I was reading about this card a few days ago.

    It appears to be offered via comparison sites. I guess fees on their standard accounts put punters off and appear poor value next to similar offerings.

    MoneySuperMarket.com is currently pushing the card with a £10 incentive for punters who apply and add at least £50 to their account.

    I read reviews elsewhere that mentioned Cashplus moves punters over to their usual pay monthly tariff after a few months.
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