Prepaid Cards Guide Discussion Area

kr147

Hello forum,

Could anyone advise as to whether a pre-pay credit card would be a good idea for a friend of mine? They have a very low wage and very bad credit, although hard-working and consciencious. I am concerned that they might end up falling into the trap of loan-sharks who regularly come knocking in the area or start going to the 'pay-day loan' type places.

I was wondering if I charge the card up with say £200 as a back up, this would work like an emergency loan from me and they can pay the money straight back onto the card or directly to me. Is this possible? This way it would avoid any extreme interest rates and I would be happy to pay the card charges if they are not to high.

What do the experts think?
Thank you!

Savvy_Sue

I am no expert, but I can't see why this wouldn't work - you'd need to check about how to top up of course.

However, you'd need to be sure that whatever you put onto the card was money you were prepared to never see again (on the general principle of never lending money to friends except on that basis). And you'd also need to be sure they wouldn't fall into the clutches of the payday loans AS WELL AS using the card.

Are the sorts of emergencies you envisage your friend having the kind which can be simply resolved with a card?

~evanesco~

I'm not sure if it's been posted but Orange are doing a prepaid card now which is only £5. There are no monthly fees, or transaction fees, there is for withdrawals though.

KELL30

I am looking for a card that will probably only be used once to book a hotel room. It won't be used for "incidentals" as a CC is only needed to guarantee the room and won't be presented at check in. What is the best type to use for this? I would rather avoid pay monthly as I may only need to use it a couple of times a year, any help appreciated

sb7

I decided to go for a Fair FX pre-paid card for travels. However, when I received the card, I quickly learnt that you then need to dial a 0871 number just to get your PIN, 10p per minute! No website alternative. That was not advertised anywhere!

ian_h

sb7 wrote: »

I decided to go for a Fair FX pre-paid card for travels. However, when I received the card, I quickly learnt that you then need to dial a 0871 number just to get your PIN, 10p per minute! No website alternative. That was not advertised anywhere!

Have a look at https://www.saynoto0870.com or see if there is a geographical number on the card

jkmac452

I wonder if anyone may be able to help me, Please. Having fallen foul of the Nationwide cash card debacle last year, (I was left in China with no money because of this), but I've worked that problem out with my ex-wife sending me £700+ every month via Western Union. I live now in Southern Leyte and I will be coming home to the UK in December. I just wondered if I could get a top up a FairFX Anywhere card, and put funds on it online, using my internet banking with the Nationwide.. It would save plenty of the fee money that Western Union charges.

ian_h

jkmac452 wrote: »

I wonder if anyone may be able to help me, Please. Having fallen foul of the Nationwide cash card debacle last year, (I was left in China with no money because of this), but I've worked that problem out with my ex-wife sending me £700+ every month via Western Union. I live now in Southern Leyte and I will be coming home to the UK in December. I just wondered if I could get a top up a FairFX Anywhere card, and put funds on it online, using my internet banking with the Nationwide.. It would save plenty of the fee money that Western Union charges.

Yes you can topup online and by sms too - have a look at CAxton too as the free ATM withdrawals may outweigh the slightly better FairFX rate

jkmac452

Thank you for the info, will try Caxton.

wronskian

I've got a Caxton FX US dollar card. I'm having trouble finding an ATM in the US that won't charge me extra for the withdrawal - they all seem to want to add an extra $3. I've tried Chase and Citibank ATMs so far. (The Euro card I had no problems and was charged no extra fees.)

Does anyone know if there are any bank chains in the US that don't charge extra on the Caxton FX dollar card ATM withdrawals?

Edit : I've now confirmed that Chase, Citibank and Bank of America all charge $3. TD Bank is fee-free.