cancel
Showing results for 
Search instead for 
Did you mean: 

Pre-paid Credit / Debit Cards Anyone?

Community Veteran
Posts: 5,076
Thanks: 1,197
Fixes: 30
Registered: 16-10-2014

Pre-paid Credit / Debit Cards Anyone?

Is it possible for members of the public to buy these and if so where from? I know companies can provide them as I have one from Bosch that was sent to me (from the US) as a cash back on a purchase I made.

So as their value is limited I though it would be a good way of paying for large one off items or maybe subscription services. Does anyone know if and where these can be bought in the UK?

20 REPLIES
acr
Rising Star
Posts: 222
Thanks: 13
Fixes: 1
Registered: 06-04-2007

Re: Pre-paid Credit / Debit Cards Anyone?

Mayfly
Aspiring Pro
Posts: 1,091
Thanks: 69
Fixes: 1
Registered: 04-06-2009

Re: Pre-paid Credit / Debit Cards Anyone?

I believe the Post Office do a travel prepaid card that you can load in different currencies including GBP.

I don't know anything about them but assume they can be used in the same way as a CC or DD card. 

Community Veteran
Posts: 14,131
Thanks: 563
Fixes: 9
Registered: 01-08-2007

Re: Pre-paid Credit / Debit Cards Anyone?

You can buy prepaid visa cards from ASDA and Sainsburys (not sure about Tesco).

The last time i looked they carried a £3.95 additional charge and they still perform a check on you via the credit reference agencies - odd considering that they're supposed to be available to those with bad credit! Odder still when you consider that its pre-paid and thus not credit related. Giftcards for other chains don't check you out via the CR agencies.

I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 5,399
Thanks: 509
Fixes: 1
Registered: 21-03-2011

Re: Pre-paid Credit / Debit Cards Anyone?

The fees tend to be higher.  I have one pre-paid card account and each of my kids has a card linked to that account. We did this for their period in university when "unexpected" bills such as electricity would arise and their bank accounts were drained.

Now they have young families they still have unexpected bills, and I let them have the cards "just in case". It avoids them ever considering Pay Day Loans.

Now Zen, but a +Net residue.
Community Veteran
Posts: 5,076
Thanks: 1,197
Fixes: 30
Registered: 16-10-2014

Re: Pre-paid Credit / Debit Cards Anyone?

I've read the link provided by @acr and the Pockit card seems to be the best option. You do get £10 free if you use the Cashplus card but that for me is outweighed by the card and dormancy fees and the life of the card. @7up, there are no Credit Checks on these cards all that is required is a valid UK Address and by that I assume they mean that the applicant is on the Electoral Roll.

 

Community Veteran
Posts: 14,131
Thanks: 563
Fixes: 9
Registered: 01-08-2007

Re: Pre-paid Credit / Debit Cards Anyone?

I never said a credit check was performed but they do still check your ID out via the agencies - name, electoral roll, past addresses over the last 6 years etc. Basically they check who and where you are which for any defaulters may not bode well. With that said opening a savings account at the bank is the same thing - they won't perform a credit check but will still verify you via the very same credit reference agencies who can still data match. It is in essence a credit check but without the name of "credit check".

It seems absurd to me that the financial system is full of so many silly little gotchas like this. For instance for a bank account with a debit card you've got to be 18 but you can have a prepaid credit card from 13 - they're exactly the same thing with different names / rules. 

I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 5,076
Thanks: 1,197
Fixes: 30
Registered: 16-10-2014

Re: Pre-paid Credit / Debit Cards Anyone?

If they use a credit reference agency that is, as you say, tantamount to a credit check by any other name. But it will of course show up on your credit report as a search. To be honest I don't think this is the case I think it's only the ER that's used. I have a Credit Expert (subscription) account so I'll update this thread at a later date when my card arrives.

 

Community Veteran
Posts: 5,399
Thanks: 509
Fixes: 1
Registered: 21-03-2011

Re: Pre-paid Credit / Debit Cards Anyone?

The whole process of the Credit Reference rating is seriously flawed. Other than credit card purchases to take advantage of the risk insurance, I've been debt free and not borrowed money for over 25 years. The credit card bill gets paid off at the end of each month of use. I own property, land, investments etc etc. None inherited, just hard work, careful planning and good luck.

However I found my low credit rating was worsened because I took out the pre-paid credit card mentioned above. Another negative factor is the credit rating of my neighbours. It seems if you don't borrow money the credit reference agencies algorithms cannot cope.

Now Zen, but a +Net residue.
Community Veteran
Posts: 5,076
Thanks: 1,197
Fixes: 30
Registered: 16-10-2014

Re: Pre-paid Credit / Debit Cards Anyone?

I am in a similar position to yourself @AlaricAdair but I have, according to Experian I have an excellent rating (999 out of 999), but I think this may well be different on say Equifax as the information they have on me may not be the same as Experian.

But the ironic thing there is you are borrowing money as you have a credit card, and by paying it back each month it can only enhance the reference agencies opinion of you. The rating’s of your neighbours have no relation to your own rating if that were the case then everyone would be affected. If I were you I'd look into see what information the reference agencies have on you as some of it is evidently wrong.

 

rongtw
Seasoned Hero
Posts: 6,542
Thanks: 1,271
Fixes: 12
Registered: 01-12-2010

Re: Pre-paid Credit / Debit Cards Anyone?

Me too but i have a low credit rating , because i dont own a credit card neither do i want one Thumbs Up

Asus ROG Hero Vii Z97 , Intel i5 4690k ,ROG Asus Strix 1070,
samsung 850evo 250gig , WD black 2 TB . Asus Phoebus sound ,
16 gig Avexir ram 2400 , water cooling Corsair H100i gtx ,
Corsair 750HXI Psu , Phanteks Enthoo pro case .
Community Veteran
Posts: 5,076
Thanks: 1,197
Fixes: 30
Registered: 16-10-2014

Re: Pre-paid Credit / Debit Cards Anyone?

Nothing wrong with that @rongtw, some people don't like, or even trust them.

Community Veteran
Posts: 14,131
Thanks: 563
Fixes: 9
Registered: 01-08-2007

Re: Pre-paid Credit / Debit Cards Anyone?

Mook wrote:

If they use a credit reference agency that is, as you say, tantamount to a credit check by any other name. But it will of course show up on your credit report as a search. To be honest I don't think this is the case I think it's only the ER that's used. I have a Credit Expert (subscription) account so I'll update this thread at a later date when my card arrives.

 


It won't show on your credit expert search because it is not a credit "check". It is however still a check on you as a person by them and a data gathering exercise by the credit reference agencies. Go to sainsburys or asda and have a look at one of their prepaid visa cards and read the TOS on the back (or online).

I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 14,131
Thanks: 563
Fixes: 9
Registered: 01-08-2007

Re: Pre-paid Credit / Debit Cards Anyone?


rongtw wrote:

Me too but i have a low credit rating , because i dont own a credit card neither do i want one Thumbs Up


Same here. I have no chance of buying a house and so to me my credit score / having credit available seems rather pointless.

At the end of the day all the credit reference agencies do is allow the lenders to drool over your custom and easy money. Thats what it is really all about. When you're at or near the bottom of the ladder there is no point.

Moons ago i did apply for a couple of credit cards and i was going to use the money to set myself up in business. The applications were guaranteed (one being a bank manager who openly told me he could personally authorize the card himself). Neither card ever materialised despite the guarantee, both firms came up with some cobblers excuse but that didn't stop them hitting my credit record with a refusal from each one of them causing serious damage to a young persons ability to get credit. This left me unable to even get a mobile phone deal but meant i had to pay over the odds on PAYG instead.

I should have gone to the financial ombudsman and dragged them over the coals but i couldn't be bothered and decided not to bother seeking credit. Clearly the big people want to keep the little guy at the bottom so there was little point worrying about trying to build a future when i could just work to pay someone else's mortgage and then rely on the state during retirement.

Sorry if that last part upsets some of you minted folks here but as you're typically the ones with property portfolios / investments and keeping the rest of us from owning a family home I won't worry about it too much - just as you don't worry about us.

I need a new signature... i'm bored of the old one!
Community Veteran
Posts: 2,265
Thanks: 102
Fixes: 4
Registered: 18-02-2013

Re: Pre-paid Credit / Debit Cards Anyone?

@Mook I've used Pockit quite a bit this year and am finding a few things to be a pain...

The first being the cards tend to break very easy (in my pocket) and second their systems have been flakey at times which means me carrying cash around with me anyway (glovebox) to circumvent the failure!

Apart from that, when it works it's great and saves me having to worry about loosing cash.