Pre-paid Credit Cards /are they any good ?

failte_2

I have lost my job due to sickness and have been unable to pay my loan and credit cards. I now have a bad credit score and have been refused further cards.
(I do need a card for shopping etc)
I have been looking at the Pre-paid cards for people with bad credit who cannot get credit cards.
There are a number of cards available, they do not do credit checks however they do charge four pounds monthly fee and have an initial charge of ten pounds.
I not want to get into worse debt.
I would be grateful for any advice please.
thanks.

jonesMUFCforever

Why must you have a card for shopping?
You are right in that they do not conduct credit checks but it will do nothing for your credit rating either.
Only you can say whether you consider an initial fee of £10 and then £48 per year to spend your own money is worthwhile.

nomoneytoday

Why don't you use cash for shopping?

failte_2

I need a card to book cheap train tickets etc or for any online buying ebay etc. I have found a pre paid credit card that is free to order and no monthly fee.

saubryn

Which one do you use failte? Does it have a per transaction charge instead of a monthly fee?

seven-day-weekend

Can you use a debit card?

lynzpower

the one I was looking at the other day also charges you 10er if you lose the card and also charges you if you need to withdraw any moneyt off the card as well

looks like scammery to me, honest.

poorbutgettingricher

if you have to prepay, then its not really a credit card is it??? :mad: :mad:

its just an expensive debit card! :mad:

you'd be better putting the money in a bank and using a debit card. :mad:

it may sound like a rant, but im sure everyone else is thinking what a money making scam! i bet they are making loads from gulable people wanting to borrow their own money!!! :mad: :eek:

they are charging you £48 a year, to look after your money, and you dont earn any interest on the money on the card. that £48 would go on the train tickets that you would have to pay full price, or traveling to job interviews etc.

i hope im not sounding horrible, but i think the proirities are wrong, you need to concentrate on cutting back on your spending, to pay the debts and look for work (even casual/cash in hand odd jobs etc) to get back on track.

file_wizzard

poorbutgettingricher wrote:

i hope im not sounding horrible, but i think the proirities are wrong, you need to concentrate on cutting back on your spending, to pay the debts and look for work (even casual/cash in hand odd jobs etc) to get back on track.

Great in principal, and I concur with your underlying values, however a lot of people who have been in debt are unable to obtain standard bank accounts with Delta / Switch Cards, and many online retailers and hotels / car Hire company’s simply wont accept the “Solo” or “visa electron” cards as payment.

Therefore in these circumstances it is essential to have a recognised Visa / MasterCard

Yes you will pay for this service, and £48 GBP is about right for the most popular product, however in real terms when you consider that you are unable to getting to further debt by only spending what you load to the card, and will not be paying interest on any amount you borrow, then in real terms it is not a bad deal if you obtain the level of functionality and easy of “modern living” that you require.

jonesMUFCforever

failte wrote:

I need a card to book cheap train tickets etc or for any online buying ebay etc. I have found a pre paid credit card that is free to order and no monthly fee.

Paying by cash can actually save you money when buying train tickets.
The trainline now charg£1.50 for credit card transactions - you can pay fares at the station for free in cash!

poorbutgettingricher

egg offer the egg money card, which is a credit card, where you pay about 8% when in debt, and earn 4% when in credit.