CashPlus prepaid MasterCard

Legacy_user

I've recently started a new job where we are reimbursed retrospectively for expenses, as opposed to using a company credit card. I don't have a credit card of my own available to use due to adverse history so I was thinking of using a prepaid CashPlus card? Apparently it helps to improve your file and I'm not getting into any debt as I'm not borrowing anything. It's simply money in, money out, repeat. How does it work and is it a good facility for this sort of use do you think? Any advice welcome, thanks.

[Deleted User]

In terms of improving your file, it's certainly no better than a proper credit card (you said it yourself, you're not borrowing anything) - it's expensive and it's just a 12 month loan which means very little to lenders. If you can get a credit card, that's a lot better as it's a proper 'revolving credit' facility and shows true discipline. If you don't trust yourself with a credit card (or can't get one) then just use a debit card on another account. Cashplus will not improve your file to an extent that it's worth paying £100+ a year for. As the adverse gets older, your file automatically improves.

How bad is your adverse? And how recent?

If you want something to replace a company credit card, and your file is poor - then you are better off trying Capital One and Vanquis (both offer a pre-application check - Capital One will tell you 100% if you're going to get a card before you put a 'hard search' through).

If your adverse didn't involve Barclaycard, they are a very good building card and always worth an eligibility check on their website.

Paying for a cashplus is a waste of money - it's basically a debit card you faff about with topping up, and they charge you for the privilege.

If you like the 'top up' nature - Santander basic bank account have a top up Visa card included for free. If you just want an 'extra' account (to make it clear what you've spent for business etc) try any other basic bank account or ask your current bank for a second current account.

Cashplus do a proper credit card, by invite only, but it costs £10 p/a, so is still worse than Capital One et al.

Trust me I've looked at every option to improve my file ASAP since I was made bankrupt, but wouldn't touch cash plus with a bargepole - my sig shows what I've got now, and that's been done without the 'help' (!) of cashplus

System

Thanks for your honest advice. I have a capital one card of my own but it's maxed out at the moment and I'm working to pay it off to be honest. I've tried for an Aqua but I was declined. The only other viable option I guess is another (basic) bank account with a debit card. As I say I'm reimbursed for anything I've spent on fuel, travel, things for my clients etc but I wanted to keep it all separate from my own finances.

Ben8282

May I suggest that instead of loading money on a pre-paid card you pay off the Capital One card instead and then use the Capital One card for the spending that you would have put through the Cashplus card.
The Cashplus card will not be reported to CRA's. IF you take out the creditbuilder loan that will be reported by as others have said a loan of £60(?) over 1 year won't mean much. I think such loans are intended for people with no previous credit history whatsoever to put something on their credit files,


Also I don't like this idea of your employer expecting you to buy fuel etc with your own money and then paying you back later. This is all very well for those with large salaries but not appropriate at all for those in lower paid jobs,

[Deleted User]

Agree with Ben - as our say your Cap1 is maxed out, you really could use the money to pay that back rather than attempt to improve your credit record with any kind of prepaid card.

Capital One will allow you to have more than one card, if the first has been open for 4 months, so if you are very careful you can open another and ONLY use it for business. Or take advantage of the 0% to pay down the first card. But you need to be incredibly disciplined, as it's a slippery slope if you aren't - as I'm sure you know if you've got adverse.

Re: paying for things etc. I know people on minimum wage racking up hundreds in expenses every other month. It's not on, but it seems to be the way of the world - especially for non-managerial staff. Screwing over those that most need the help, whilst giving perks like credit cards to those on high salaries that can afford not to have it..... the rich are treated better - a common theme in U.K. industry!!!

Long standing employers may well agree an advance etc - new ones will essentially just say 'we told you at interview, like it or lump it'