Pay as you go credit cards

andy_H_4

Gingertom wrote:

I use a Pre Paid Card and it great. I download £100 on to it from the PostOffice as needed ...cost only 70p. I use it for all internet purchases (no charge) ie Amazon...EBay...Price Drop TV etc. The most fraud I can ever be taken for is whats left of my £100...I can never knowlinly overspend. If I use my MBNA Credit Card for example and it get "Compromised" in any way I can get "taken" for a lot of money as my limit is £16,000

Sounds like a good deal Gingertom, what card is it and how much was it to set up ... etc?

echinacea_2

don't know if it helps, but this link shows some of the prepaid card comparison: http://www.which-prepaid-card.co.uk/features/compare-cards-prepaid.html

orangemollie

It’s clear that King Of Fools believes that prepaid cards are “a rip off”, and should not be used.

It’s easy to come to this conclusion, as prepaid card issuers are upfront and extremely clear with regard to fees and charges. Of course, there are charges with prepaid cards, and some are higher than others. Banks wont run prepaid card programs for free.. They do not get anywhere near the they would make on a credit based agreement… No income for interest, late payment, insurance and overlimit fees etc. The best they can hope for on a prepaid card is interest they make on the float (i.e. money that you have paid in), and interchange revenues off merchants (retailers) that accept the cards. Some also have top-up or monthly fees + per use fees etc.

If you compare them to a basic bank account, it’s easy to conclude that they are expensive. But, let’s face it, if you have a basic bank account, its likely that you may have experienced credit problems in the past, or be new to credit. It’s, therefore, more likely that you may, for example, have a payment retuned or accidentally bounce a DD.. The bank will be quick to charge you a £40 fee for the privilege.. That would pretty much pay for a prepaid card for the entire year!

Gingercordial is absolutely correct.. A prepaid mastercard will be accepted at almost 25 million locations around the globe.. A basic bank account with an electron badged product is more like 12 million. There are also a number of internet based sites that will only accept full Visa or Mastercard.

Some of the prepaid card issuers also voluntarily provide you with the same protection offered under the credit consumer act. So, if the goods are not received, or the retailer goes bust, you have a level of protection.. You wont get that on your basic bank account (or normal bank account come to that!)


You are also making a big assumption that the consumer can get a basic bank account in the first place! Most have a much lower credit scoring requirement, but its not guaranteed.

I am not saying that prepaid cards are fantastic, or necessarily cheap. All I am saying is that they provide a service and are extremely useful to some consumers. The can be very cost effective for regular users.. I would avoid the ATM as much as poss though!

Obviously if you have 10 credit cards in your wallet or purse then the benefits are less clear, although they are still good for budgeting etc.

jembie

King_Of_Fools wrote:

My advice is do not use them they ar a rip-off!

Seriously, they give you no benfits over a debit card but cost a lot more to use!

...But if your bank won't even give you a debit card you are screwed.

I have a cashplus card and a Mirror Quidity card. It is great for saving money out of the way and has been fantastic this year for Christmas shopping.

I put £10 a week on my cashplus card every week since I got it and it means that when I have weeks where direct debits have taken all my money I can call on the card as an emergency stash

jembie

Zebedee69 wrote:

Why dont you use a debit card??????

Maybe (like me) they can't get a debit card!!!

Elliebell

And the same as me!

And nowadays online shopping is cheaper and easier than going out!

I've heard of a card called Splash Plastic, i ordered one a while back but never used it, but after ready some of the above posts i'm thinking i might.

Only problem being not everywhere accepts the card.

Gingertom - can you use that card anywhere? i.e. ebay etc?

Icemoose

I got a CP card earlier this year... mainly to be used for shopping online when I could not use a debit card... I found it handy but have it sent so I don't pay a monthy fee just a £1 on every transaction but I don't actually use it so it's costing nothing right now...

I also used it as security to obtain a mobile phone contract and that went through no problems with having a credit card!

mrs_mab

I've got a Quidity card because I can't get a bank card. I've used it to buy my Xmas presents online. The costs are fair because they don't charge you a monthly fee. You just pay a small percentage when you use the card. So if I don't use it for a month I won't pay anything.

smashedbooboo

Hi, new to this board. but i have a pre paid mastercard. It costs me 4.95 a month. and its free to load cash onto it. The credit cards i had were costing me a fortune as i did not pay the full balance off every month. and if i went over my limit i got a wefty charge and also the same even if i was a day late paying in for it. Now no matter what 4.95 is way better than the 50.00 plus the interest. and i know the cash is mine and not borrowed. its great not having a bill to worry about at the end of the month and the money i am saving is paying off my debts. well helping. and i have not lost any benefits from changing to this type of card. xxxxx

Kazzajr

hiya, as I have credit problems I can only get a basic bank account so cant get a debit or ordinary credit card so this seems like a good idea to me as it means I can shop online where most of the bargains are!

Im trying to decide between quidity or cash plus(£1 per trans one) can anyone advise best one I will probably not make that many purchases on it just handy to have.

Also with quidity being maestro is it as widely accepted?

Any info much appreciated.

Thanks