Whats the point in a prepaid credit card?
We have atrocious credit and can’t get even the “poor credit” credit cards like Vanquis etc, so I’ve pretty much given up trying
I have read about “pre-paid” credit cards on which you put your own money in an account and then use the card to spend it.
But why? Whats the point in buying a piece of plastic with which to spend your own money? Whats the difference between that an using an ordinary debit card from your bank?
May 28th, 2010 at 12:33 pm
There is no difference, except you have to pay about £10 for a starter pack for the prepaid cards.
ETA some people on here obviously don’t know the difference between a CREDIT card and a DEBIT card.
May 28th, 2010 at 12:53 pm
The bank wins.No money loaned to you via card, and no bad debts as if there is no money on card you cant spend it. Good eh.
May 28th, 2010 at 1:09 pm
there is none u might as well keep ur money in your account
May 28th, 2010 at 1:35 pm
Actually, that’s pretty close to what people do that do not carry a balance.
They pay off the balance each month, which is really no different than pre-paying it one month in advance.
Makes total sense to me.
Remember… most people do not carry a balance. Only poor people that become slaves to interest do.
May 28th, 2010 at 2:23 pm
If u have a debit card there is no point if havin a pre-paid credit card we have the paypal one but that’s so we can transfer the money we make from ebay quicker.
May 28th, 2010 at 2:48 pm
good point banks need your cash so they will do anything to get it..spend money with us…then er spend it again????? but suppose a million people fall for the con at a tenner a throw…big bucks for the bank….
May 28th, 2010 at 2:59 pm
Some companies dont take debit cards. It only really works if you want to buy stuff from on line and cant get a credit card for whatever reasons. I didnt realise you had to pay to get them though, I’m sure the site I looked as was free but I cant remember the name of it!!
May 28th, 2010 at 3:22 pm
The prepaid cards were brought out for the conscious shopper who didn’t want to use there credit card online in case of fraud. So they brought out the prepaid card, you set the amount and then you can shop online without the risk of running up a £10,000 credit card bill when someone stole your details. They were also aimed for the younger shopper, those who can’t get credit cards but need one to shop on places like Ebay or Play. Basically there a security measure to keep ypur personal credit card details safe from fraudster websites!!
May 28th, 2010 at 3:27 pm
There is no difference, you can use your bank card for all purchases
May 28th, 2010 at 4:18 pm
debit cards it is possible to go overdrawn because some shops have a ‘floor limit’ – below this their terminal does not go on line to check your balance.
With a cash card this cannot happen.
Also some people still cannot get bank accounts or bank accounts with debit cards or credit cards but can still get pre-paid cards
saves carrying cash and allows web-purchases
May 28th, 2010 at 5:03 pm
lots of points :-
people who don’t have a debit card or have one of those cash point only accounts and woul dlike to buy things online
parent so give to their kids for emergancies
to give to people as presents
to keep money on incase of emergancys
to take money on holiday