Pre pay cards

fermi

There is an official MSE discussion thread on this card and the 'credit builder' option on the Credit Cards board.

Link: Need to rebuild a bad credit history? New ‘last resort’ option.

(I've not read the thread through though )

MissMuppet

I use SplashPlastic... I paid £4.95 first off I think and I transfer money from my bank account each month which is free, when I use the card I get charged 2.5%. So far so good... no problems with it, although I do try and use cash whereever possible to avoid the charge.

Richard_S

fermi wrote: »

There is an official MSE discussion thread on this card and the 'credit builder' option on the Credit Cards board.

Link: Need to rebuild a bad credit history? New ‘last resort’ option.

(I've not read the thread through though )

Hi fermi,

I read the Thread, although it didn't convince me that the £60 loan would make any difference to a bankrupt's credit rating. It seems to me to be a marketing ploy by the company to encourage people that it's worth spending £60 year. The terms of a credit agreement are detailed on CRF's and I can't think a £60 loan over 12 months is going to make a scrap of difference if you're applying for a debit/credit card or mortgage.

We use a Cash Plus card and had no problems at all. We switched from the monthly option to the £1 per transaction because we don't use it very often. I suppose if somebody uses it frequently then there's always a chance that it might have a beneficial impact on your credit rating.

Richard

fermi

I would be inclined to agree Richard. It's really intended for people who are having trouble because they have no/little credit history whatsoever.

While the BR order and defaulted accounts stay on your record, in my opinion the effect of the card is likely to be small or negligible. Just my opinion though.