Prepaid Credit Cards

pulse90

Can Anyone Advise About Prepaid Credit Cards, Are They Any Good And Would They Improve Your Credit Rating At All, As Its Mastercard?
Thanks

---lee---

They are not credit cards - they are prepaid cards. Prepaid cards must be topped up with cash prior to use whereas credit cards actually offer a line of credit. They are good for peeps with poor credit history or under 18's and can be used in most situations where a normal visa/mastercard credit card would be used. Also good in situations where you want to tightly control spending.

I can't see why it would have any affect on your credit rating as it's not a form of credit. Most (all?) don't even do a credit check.

Blushbaby

Anyone can get one. No credit checks are done. You load YOUR money onto them and spend it accordingly and you can't go over what you have on the card.

http://forums.moneysavingexpert.com/showthread.html?t=393456

rosietj29

They are not much good from my experience - but each to their own and perhaps some find them useful. I have now drawn the cash out on mine as just had a bad experience with them/Virgin Trains. Briefly - I tried to book a train ticket for my daughter to come home at Easter from uni in Nottingham. Anyway the online train ticket bookings (not just Virgin) will not take my Solo card (even though it has Maestro on the back which is really really inconvenient!) - so I used this Cashcard which can apparently be used wherever Mastercard is accepted. However, when I tried to pay online with it the Virgin webpage said there were insufficient funds or similar wording and they could not proceed with the booking - but there were plenty of funds!! The ticket cost £11.20 and there was over £50 in the account. I went on line to check with Cashcard and there were more than sufficient funds as I had known. However, to my surprise my £11.20 had in fact been allocated to Virgin, but these funds were 'pending' in my account. Virgin's website refused this form of payment even though the funds were there and ready for them to have, but still threw me out of the online booking process!!! How confusing! and I could not proceed to book my ticket. I rang Virgin customer service helpline which is based in India and had a really frustrating conversation but they did not understand my plight - as robotically they said I had to send my cashcard statement to them for a refund! - but I didn't want a refund - I wanted them to take my pending money and give me my ticket!! and why was it 'pending' when there was more than enough for my £11.20!!! Gave up in the end as I was totally frustrated with constantly having to repeat everything as I worked my way through managers! There is something amiss between Virgin (in this instance) and Cashcard Plus and that is too unreliable and confusing for me, as if the funds are there, and the Cashcard Plus card flagships Mastercard as a means of payment, then why was I still unable to purchase online. The fuss, confusion and frustration in trying to sort it out was not worth this card - so I am ditching it - although £11.20 of it, is still pending!!! The moral of this epic is that I have heard that although you may have more than enough funds in your Cashcard account some 'merchants' as Virgin were referred to in this instance - will need to check they will be paid before you get the goods, although the money is taken out of your account in the meantime. So when the 'merchant' is sure of payment - which can take up to 15 days(!) then they will honour the purchase and the funds are released and you get your goodies - bit difficult if you used your card when out for dinner and hit this problem! Maybe I was just unfortunate - However, the booking online procedure with Virgin Trains throws you out of the system at a certain booking point but still removes the money! and whilst that money is 'pending' you cannot draw on it as it is classed as uncleared funds and you have to wait for the merchant to accept it or reject it. You can ring Cashcard but again their telephone customer service line is costly and in my experience they can keeping you waiting. It does not help your credit rating either as the earlier poster said, it is not a credit card. The card is too unrealiable for me, but for some I suppose it has a place. Vanquis is a credit card and are one of the few companies who claim that they can 'help' those with previous financial problems, but again, be warned - they have very high interest rates and strict protocols for payments - but if you keep within the boundaries it will help your credit rating eventually. Those that have had financial problems in the past or have been financially linked with someone else with problems through unfortunate circumstances - will continually be penalised - but thats another thread! However, I finally got my ticket by legging it to the station, paying in cash with the help of a very nice man who did his best to get me a better bargain - and its winging its way to Nottingham! :T

---lee---

rosietj29, I found your post useful with a lot of first hand experience and good information in it about prepaid cards but it was nearly impossible to read!

I had to copy it out and into notepad so that I could add some line breaks otherwise my brain just kept hurting. Please consider editing it and adding some line/paragraph breaks.

If prepaid cards work the same as credit cards, any reserved money should automatically be released after 3 days so it might be worth hanging onto your card for a while longer to see if the money is automatically returned. If not, I would chase Virgin until they refund it (and ask for a goodwill gesture for pointing out that their payment system has problems).

Tori_Bellatrix

"Reserved" funds can take up to 15 days to be released with CashPlus ... :undecided

rosietj29

Sorry Lee and everyone who read my post - I got a bit carried away with the anger of the moment and the fingers were ahead of the brain!!! - and apologies for my lack of good old paragraphs and punctuation! I'm usually ace at english!! but trust eventually you all got the gist!!

However, just to 'top up' (excuse pun!!) prepaid cards SHOULD work like credit cards but in my experience this particular version did not - as Tori also seems to agree, and REMEMBER - you are NOT building good credit with them. Just be careful out there -its your hard earned money - and no-one should hold on to it unnecessarily. Just use it carefully and don't load too much money onto it if you don't need to - as you will receive no interest and you might fall into problems as I did. Really hope you don't and if it works for you - then fine - but just be careful.

Oh! and another tip - make sure they charge you per transaction (a £1 I think) rather than per month - but again it depends on how much you use it. They were taking £4.95ish per month off me until I told them I had ticked the appropriate box for PER TRANSACTION and my money back please - which they did in fairness after yet another epic long haul phone call - but again be careful. I knew I would not use it too often so £1 per transaction seemed fair enough at the time.

Anyway Cashcard Plus are becoming dim and distant memories for me (although still waiting for my £11.20 which is - Yes - you've guessed it - still pending - think Mr Branson could spare me my £11.20 !!).

Again - apologies for my bad english - no excuses - just anger of the moment with Virgin and CashPlus!!! Happy and careful spending everyone and good luck with the paragraph breaks !!

NB - I have used them this time.....
PS - I got 'A' level english !! hey ho x:T :rotfl:

rosietj29

Forgot to say ....did ask Virgin for a goodwill gesture for all my trouble ....but all I got was the robotic.....you will have to send us your statement...... you will have to send us your statement..... you will have to sennnnd usss yourrrr statement [/I]....yawn yawn ..... .. - not worth the stamp!
so much for Mr Virgin ! ah well ! xx:j

pfpf

rosietj29 wrote: »

PS - I got 'A' level english !! hey ho x:T :rotfl:

are you sure?

pulse90

Thank You All For Your Advice. I Cannot Seem To Get A Credit Card Even Though I Don't Owe Anything, It's Really Annoying, The Only Ones That I Am Offered Are The Ones At @29%. I Have Done A Credit Score And Still Do Not Understand The Problem. Any Suggestions?
Thanks

Linda32

Pulse90,

It might be because you havn't had credit that you can't get a credit card.

I know, the obvious answer to that is, well how do I get one in the first place.

Normally, whoever you bank with will normally give you a credit card, for me I only have to walk through the door at LloydsTSB and someone with a clip board appears asking me (sorry to anyone ready this who's job it is to do that, nothing personal meant)

The rate you mention of 29%, thats very high for a credit card :eek: thats normally store cards. But either way, if you intend to pay the balance off each month, it dosn't matter as you won't be charged interest anyway