Prepaid Credit Cards

[citizenB]

I no longer have a debit or credit card and sometimes I want to purchase online or not want to take a lot of cash out. I have heard that there is a prepaid credit card.. The martin Lewis site doesnt appear to have any information regarding these at the moment.

 

Has anyone got one or know anything about them? I would be interested in your opinion of them. Thank you x

[buzby]

Just search for PrePAid Credit cards and you'll find there are loads of them. You'll find the bulk of these a 'virtual' you have a number you can use but there is no 'plastic' you can offer a retailer, so only of use for web purchases.

 

Another 'gotcha' is that although trailled as 'credit ' they don;t offer any credit, only your stored balance. As such, firms that wish to pre-autrhorise sales (like hotels and car rental) will be declined as only a debit is allowed.

[rory32]

You'll find the bulk of these a 'virtual' you have a number you can use but there is no 'plastic' you can offer a retailer, so only of use for web purchases.

 

Well the one I've had for a year or so is very definitely plastic.

Another 'gotcha' is that although trailled as 'credit ' they don;t offer any credit, only your stored balance.

Well that's why they are prepaid and there are no credit checks.

firms that wish to pre-autrhorise sales (like hotels and car rental) will be declined as only a debit is allowed.

The cashplus card I have allows me to book hotels and car rental, I assume because it's a Mastercard. Although you do need to contact their customer services to switch this service on on your account first.

[rory32]

Has anyone got one or know anything about them? I would be interested in your opinion of them. Thank you x

I find it very handy, particularly if like me your credit ratings shot and you want to avoid getting into debt or taking on further debt. The cashplus card I have charges an issuing fee and you can choose between an interest rate on transactions or a monthly fee. You are automatically accepted. For more information just google cashplus.

[buzby]

Well the one I've had for a year or so is very definitely plastic. Well that's why they are prepaid and there are no credit checks. The cashplus card I have allows me to book hotels and car rental, I assume because it's a Mastercard. Although you do need to contact their customer services to switch this service on on your account first.

 

1) What you had was immaterial! The seach I undertook pulled up 26 'hits', of which only 3 were non-virtual. Didn't you notice where I said 'the bulk of these' were virtual

2) Disagree, the OP was asking about prepaid 'credit cards' I was pointing out the difference.

3)The Post Office card, available in Sterling, Euros or Dollars, is run by the Bank of Ireland and you're still credit checked. It's their card, but saying there's no credit check is both wrong and misleading in this case.

4) Again, your experiance apart - since the default state means you cannot pre-auth, you've confirmed the problem exists.

[citizenB]

thanks for you input buzby and rory.

 

I realised that you had to 'charge' the card with cash and could only spend what was on there. I just wondered with there seeming to be so many of them which one if any stood out amongst the rest.

[rory32]

I just wondered with there seeming to be so many of them which one if any stood out amongst the rest.

I have told you the one I have. I know other people who have it too. As previously stated there is no credit check for this one, it is a physical card and you can use it on the net, in-store and for car hire and booking hotels.

[buzby]

You'll find they're all pretty much of a muchness - I'm not aware of any that stands out (either virtual or 'real') but of course any money held on the card doesn't earn you interest and there are always fees to reload as well as an enforced card 'renewal' of £10.

[citizenB]

Hmm, yes methinks the charges and renewal fees are putting me off already LOL. I think I will stay a 'plastic free' zone for a while longer . x

[Leo1]

I have an extremecred card which is prepay:

 

(edit)

[buzby]

I have an extremecred card which is prepay:

 

Perhaps- but this firm does charge you £9 every year and DOES credit check you, as well as passing on your details to others. Here's the T&C;

 

"We may obtain information about you from credit reference agencies to verify your identity for fraud prevention and/or money laundering. Scoring methods may be used in the verification process. A record of this process may be kept and used to help other companies to verify your identity. All personal information given by you may be checked with fraud prevention agencies and other organisations involved in crime prevention and may be used for the investigation of fraudulent activity and crime prevention to meet our obligations under the Maestro� scheme regulations, and if you have given false or inaccurate information and we suspect fraud we will record this. If you would like details of the third parties with which we share information about you please write to First Prepay, Eden Building, Lakeside, Chester Business Park, Chester, CH4 9QT."

[citizenB]

Hmmm, with my credit rating at subsoil level I dont think this would be a good idea. Chester Business Park.. isnt that the cave MBNA live in ?. Many thanks for you input everyone. xx

[Holdred]

Perhaps- but this firm does charge you £9 every year and DOES credit check you, as well as passing on your details to others. Here's the T&C;

 

"We may obtain information about you from credit reference agencies to verify your identity for fraud prevention and/or money laundering. Scoring methods may be used in the verification process. A record of this process may be kept and used to help other companies to verify your identity. All personal information given by you may be checked with fraud prevention agencies and other organisations involved in crime prevention and may be used for the investigation of fraudulent activity and crime prevention to meet our obligations under the Maestro� scheme regulations, and if you have given false or inaccurate information and we suspect fraud we will record this. If you would like details of the third parties with which we share information about you please write to First Prepay, Eden Building, Lakeside, Chester Business Park, Chester, CH4 9QT."

 

Ok, they will still have obligations to verify your identity under AML regulations. From reading that I only gather they will use what information you have provided on your application to reference that with the previous and linked addresses held on your credit file, not your previous account performance.

 

Not every scan of your credit file is to ascertain credit worthiness, and every record will still be recorded even if it just to verify this.

 

It's not as misleading as you're trying to make it.

[buzby]

Misleading? Let's be realistic here. We've gone from 'no credit check' to "OK, they look at some data, but not your previous account transactions" - and you know this.... because?

 

They've not asked for address verification access (which is possible, with no access to financial history) yet strangely, they've got permission from applicants to check the entire file at their discretion...? I'm not buying it, I'm afraid. Human nature being what it is, staff will have a good old nosey if it suits them, and under the guise of 'security' or some other misguided belief it is all for your benefit.

 

As to whether a scan of my credit file is to ascertain my credit worthiness or not is immaterial, you give them the 'key' to allow access. Trusting them to be responsible with this information is one heck of a long shot. As to your confidence in the access being both required and handled competently, you must have a trusting nature. Add to the fact this is not a one-off process, as by the description it appears open ended with no opportunity to opt-out or limit the access to 1 month of the application being made.

 

Since credit reference agencies don't only record 'credit' (CCA) subject information, the fact this and other companies don't supposedly 'credit' check you is immaterial. it is another open door on your file for the two-way transfer of data about you.

 

You may be content with this, I on the other hand, as sure as heck are not.

[smithy73]

Hi CitizenB,

 

Just having a nose through some of the threads you started and noticed this one. I have just got a prepaid card and its pretty good. It costs £4.99 per month and you can use it anywhere. Details can be found at (edit).

You can top your card up at any paypal location and pay money in at any Barclays branch. As pre paid cards go this is one of the better ones.

It also provides a good sms service where you can just send a text to check balance or transfer funds between cards.

 

regards,

 

Smithy.

Edited May 22, 2008 by rory32
please don't post commercial links.

[citizenB]

Thanks smithy, it looks pretty interesting. Have saved the link for a good look later. xx

[smithy73]

Hi CB,

 

No problem. As I said its not a bad card. I know about ten people who are using them. They had a few teething problems initially but they seem to have gradually ironed them out.

 

x

[citizenB]

Hi, Martin Lewis of Money Expert did say he was going to look into the prepaid cards, but to date doesnt appear to have done so. So I can only go on personal recommendation at the moment. This one definitely appears to tick all the right boxes. xx

[dave]

Could you not just set up a paypal account and link it to your bank account.

 

It does take 7-9 days to transfer money, but it will enable you to buy on-line at a lot of places.

[citizenB]

Hi Dave, it isnt just for online purchases that I require a card otherwise that would be an ideal solution. x

[tifo]

you can get a Visa Debit card from Lloyds with no credit check and a Solo Debit card from NatWest also. These are just two of many banks offering these. The Solo goes through as a Maestro card anyway so there is rarely a retailer that does not accept either Visa Debit or Maestro Debit.

 

there is therefore no need for any prepaid debit or credit card as these charge high fees for something you can have for free from a bank.