Pre Paid Credit Card or Egg Money Card?

DaveMoneyMan

Hello All

Very simple question... I have been looking at the prepaid cards available, like the Sun one and various others. You load your money, then they all seem to charge for spending it.

Then I looked at the Egg Money Card... it seems as though you load your money (FREE) and then spend it (FREE), you even get interest and cashback. It seems like you only pay interest when you use their credit lending.

Am I missing something?

CopperPlate_2

On the surface, very little. Not sure if the lending criteria are 'relaxed' for the other pre-pay cards, in as much as - are they credit cards like Egg Money? Egg Money allows you to load cash onto it but it also extends you a line of credit so that you can use it like a traditional credit card (i.e. you are given a credit limit, which is something that I don't think you get with the other 'pre-paid' cards?) Someone with a better understanding of the two types might be better at this point to furnish us with some more detail?

sicker

Egg Money also allows you to withdraw your positive balance from atm's at up to £500 per day with no fee, as long as balance remains positive. The 4% interest is paid monthly and the 1%cash back (I'm due £150) is due to be paid in March each year.

YorkshireBoy

There's a useful guide to getting the most out of the Egg Money card at:

http://www.stoozing.com/cgi-bin/forum/YaBB.pl?num=1126208648

DaveMoneyMan

Thanks for all your replies so far.

Strange though, I applied for an Egg Money Card selecting the option to pay £50 per month in by direct debit. I got refused :mad:.

Is my credit rating really that bad!

mrmajika

CopperPlate wrote: »

Not sure if the lending criteria are 'relaxed' for the other pre-pay cards, in as much as - are they credit cards like Egg Money?

They are not credit cards and so there is no lending criteria. If you don't front load the card with money, you can't use it. I believe those under 18 years old can also use them.

DaveMoneyMan wrote: »

Strange though, I applied for an Egg Money Card selecting the option to pay £50 per month in by direct debit. I got refused :mad:.

Is my credit rating really that bad!

The pre-pay cards won't credit search you and allow you to load the cards with money each month.

The Egg Money card is a credit card (with a unique ability to front load the card with money also). I think you are getting a little confused. The £50 direct debit you would have selected is in relation to spending on the card. The £50 direct debit would not have front loaded the card with money for you, but allowed you to pay once you have spent it. That is, you are borrowing the money.

You would need to obtain a copy of your credit report to find out how your credit worthiness is. Have you had previous problems?

CopperPlate_2

mrmajika wrote: »

They are not credit cards and so there is no lending criteria. If you don't front load the card with money, you can't use it. I believe those under 18 years old can also use them.

Yes, I did think that I got myself confused once I'd re-read my post but didn't think to delete the 'lending' afterwards. They sound a just like these 'gift cards' that you can pick up in supermarkets/department stores and load up with money, the only difference being that with the 'pre-pay' variety you are free to spend it wherever you like AND you are charged (often) a fee for topping up and thereafter spending, am I right?

mrmajika

CopperPlate wrote: »

Yes, I did think that I got myself confused once I'd re-read my post but didn't think to delete the 'lending' afterwards. They sound a just like these 'gift cards' that you can pick up in supermarkets/department stores and load up with money, the only difference being that with the 'pre-pay' variety you are free to spend it wherever you like AND you are charged (often) a fee for topping up and thereafter spending, am I right?

Exactly! I really can't see the need for these at all. They promote them as being safer to use on the internet /abroad etc, but charge 3% to top up online or via PayPoint or 75p per time at the Post Office. PLUS...

Prepaid Card Purchase Fee £9.95
ATM Cash Withdrawal Fee £1.00
Foreign Transaction Fee 2.75%
Card Replacement Fee (Lost/Stolen/Expired) £5.00
Cancellation Fee / Refund Fee £10.00
Upgrade To Other Card Issued By Us £10.00

thrasher

can you transfer money from egg card to an egg money card.

benf90

thrasher wrote: »

can you transfer money from egg card to an egg money card.

If it's a credit balance on the Egg Card, i.e. you've overpaid them then yes that can be transferred over to the Egg Money card.

But, if it's a debit balance, i.e. you owe Egg the money on the Egg Card then no that can't be transferred over to Egg Money.