Compare Prepaid Credit Cards With Money Pug

Money Pug allows you to compare all the best prepaid credit cards available on the market, so you can find the prepaid credit card that is right for you. No matter your reason for wanting one of these everyday cards, you can find exactly the card for you when you use our handy comparison service.

Who Might A Prepaid Credit Card Be A Good Idea For?

A prepaid credit card is an excellent choice for:

Teenagers learning responsibility and managing their own finances for the first time.

Most bank accounts for children and teenagers will come with a debit card. But your youngster may not yet have quite learned to curb all those shopping impulses, and so could easily drain a bank account entirely before they learn fiscal responsibility. With a prepaid credit card, teenagers can have a certain level of independence and can begin to learn how to manage their own money, while remaining under the watchful eye and controlling hand of their parents or guardians.

Parents can set a limit to make sure their teenagers don’t go wild on a spending spree, and keep an eye on their spending while allowing them a certain level of freedom and self-control.

A prepaid credit card could also be useful for a child on a school trip or excursion with friends. If they take cash, there is a risk that they can lose it. Lost cash cannot be recovered. A lost prepaid credit card, however, can be blocked as soon as its loss is reported. If you report the loss right away then you will likely be none the worse off for the misadventure.

Anyone with a spending habit that can quickly get away from them.

If you struggle with day to day budgeting and things are tight, you may find that you often have to dip into an expensive overdraft (or accidentally end up doing so on a regular basis). A prepaid credit card may work out far cheaper for you when this is the case. A prepaid card can be great for everyday spending. You can still get the same perks – discounts or cashback – that you can get with a debit or regular credit card, but you won’t have to worry about exceeding your budget.

People who do not have a bank account, and/or have a poor credit rating.

If you have struggled with your financial situation in the past, and have a poor credit rating, then you may struggle to get a bank account that meets your needs, or a regular credit card. A prepaid credit card could be the answer for those looking for a solution for everyday spending and a way to improve their credit rating. A Cashplus Creditbuilder card will help you curb your spending and learn to better manage your budget, while also building your credit rating every time you pay the monthly fee.

For anyone travelling abroad.

Specific prepaid credit cards also serve as prepaid travel cards. A prepaid travel card works like an electronic travellers cheque and while there will be a small application fee to take one out, they can work out cheaper than a debit or credit card for spending when abroad, as there is usually a lower, or no, transaction or withdrawal fees. Learn more about prepaid travel cards on the relevant page on this website.

If you an get a credit card then you should usually do so rather than opting for a prepaid card, but in the above scenarios, it could be your best option.

What Are the Benefits of a Prepaid Credit Card?

There are many benefits to a prepaid credit card, including:

The chance to keep a tight control on your spending and avoid overspending each month.

The chance to buy in shops without having to carry cash around, even if you do not have a bank account.

The chance to shop online even without a traditional debit or credit card.

How Much Do Prepaid Credit Cards Cost?

A wide range of fees are associated with prepaid credit cards. There is usually a charge for getting the card in the first place, called the application charge. Prices range between zero and around £10. Keep an eye out for special deals that waive the fee if you load them with a certain amount, or have other special offers. Sometimes, you can get a prepaid credit card for free so keep your eyes open.

Some cards also charge:

Inactivity Fees Don’t be caught out by the fact that certain prepaid cards may charge a small monthly fee if your card is not used for a period of time (e.g. three months). Make sure you keep your card running to use it in the most cost effective way.

Inactivity Fees Redemption Fees There may also be a fee involved in reclaiming any cash unused from your card. On average, it will cost around £10, so how much money there is left on the card will dictate whether or not it makes financial sense to reclaim it.

Fees can quickly add up so be careful when comparing and choosing your prepaid credit card and make sure you are happy with and aware of all the hidden costs.