Could a prepaid card suit you?

A number of industry officials have stated that prepaid payment cards could suit many people, particularly in the current financial climate where many of those looking for the convenience and ease of making payments on plastic cannot get regular credit cards, and in some cases may only be eligible for basic bank accounts that offer no debit car facility if their credit is badly damaged.

One official said that these cards, which are preloaded with cash like a pre-pay phone, could also help holidaymakers, stating: “While the strength of the euro is of concern to holidaymakers, using the wrong foreign exchange product can be even more costly. If you are stuck with an uncompetitive debit or credit card and don’t have time to get a new one, prepaid cards can be a good option. And you don’t need to worry about overspending on your holiday budget.”

One card provider, which offers a credit building facility on its prepaid payment card added: “The significance of this is huge for people who have either lost their credit eligibility or for migrants who have no credit footprint at all.

The creditbuilder feature enables these people to show credit card, loan and mortgage providers they can regularly make monthly repayments and so build their rating at no extra cost. It helps people take the first step back to credit eligibility.”