Prepaid Cards?

DazedAndConfuzed

Hi,

I've recently come out of BR and am looking to slowly build up my credit rating. As well as taking one of those stupidly high interest rate cards (spending £10 a month and paying it off full each month) I've been looking at the Virgin Prepaid cards.

I've got a debit card from Barclays so I can do online shopping, etc, as normal, is there any real benefit to the prepay ones?

Thanks :beer:

skylight

I got myself a pre-paid from Paypal and have never used it in the 18months I've had it. There was nothing there that I cannot save up for in a proper account, use a debit card for or use my credit card for (in emergencies or for the insurance coverage; having saved enough first!)

Ronnie_O

Most pre-paid cards don't report to your credit file, however the CashPlus Mastercard does (Experian and Equifax) It costs you £5 per month to have 'Creditbuilder' but without useage charges. I use it and it's a good card-never been declined anywhere. I plan to keep using it when I eventually get a regular credit card (albeit high APR) to have as many (and only!) green boxes on my credit report. £5 per month compared to the big picture is nothing.

snoopy89

i have a pre paid card, never used it. i have coop and barclay cash cards they do the same thing dont they or am i wrounge. ?:) been br since nov 2009 and no probs what so ever.

k2nga

They are pretty useless if you have a Visa card from your bank as you dont get charges using them which you do with the prepay card. i had mine before i got my Barclays Visa and it expect that when it come round to the card being renewed they will take it away as it says in the T&C's that if it not used regularly they will take it away when the card date expires but thats fine with me.

DazedAndConfuzed

Cool, thanks for letting me know. It was of interest if it helped me build up my credit rating, no point in getting one if it doesn't!

k2nga

I think you pretty stuffed for 6 years as am i but it might be worth think about getting a credit building credit card nearer the end of the 6 years as that is what i plan to do.

Ronnie_O

DazedAndConfuzed, I don't think you need to wait until 6 years is up. Waste no time with re-building your credit history. It'll certainly pay dividends in your future!!

Here's a some good articles on Pre-Pay cards you may or may not have already seen

http://www.moneysavingexpert.com/cards/prepaid-cards
http://www.what-prepaid-card.co.uk/features/compare-cards-prepaid.html

DazedAndConfuzed

Ronnie_O wrote: »

DazedAndConfuzed, I don't think you need to wait until 6 years is up. Waste no time with re-building your credit history. It'll certainly pay dividends in your future!!

Here's a some good articles on Pre-Pay cards you may or may not have already seen

http://www.moneysavingexpert.com/cards/prepaid-cards
http://www.what-prepaid-card.co.uk/features/compare-cards-prepaid.html

Excellent, cheers! I know there's little ways of building up my credit over the next few years so when my BR vanishes I should have a fighting chance of getting a mortgage.

Appreciate your help. :beer:

Ronnie_O

I know a woman who went BR about 4 years ago and very recently had a mortgage application accepted with her husband, who has a good credit rating. They did, however, have a joint deposit in the region of £20K to put upfront. She told me she went to lengths to improve her rating straight after BR. Although that's anecdotal/circumstantial, there is light at the end of the tunnel I think. Basically, from what I've learnt it does seem to depend on an individuals circumstances. Good luck to you anyway!!

newdawn_2

Can I have the pre paid cashbuilder prior to discharge?