What Is A Prepaid Card?

By Author: Abbey smith
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As one of the fastest growing consumer trends in the UK, prepaid cards are now very much in the spotlight for their flexibility, convenience and security. Unlike a credit card, prepaid cards have no credit or debit facility attached, making it an attractive budgeting tool as you simply cannot overspend online or at the tills.

Although many consumers dismiss prepaid cards as a rip-off of a gift card or store card they are much mistaken. Though they may be similar in appearance, prepaid cards actually have a much wider acceptance in a similar vein as a credit or debit card, with the ability to use it internationally as opposed to one specified store.

No credit checks required

As you cannot apply for credit with a prepaid card consumers do not need to go through any credit checks as they are not directly linked to personal bank accounts. Subsequently prepaid cards are an increasing attraction to those with poor credit ratings and CCJ’s who are looking for a convenient way to spend their money responsibly.

As a prepaid card is not linked to any bank account it is also a very safe and secure way of managing ...
... your finances without the risk of being affected by personal identity or banking fraud.

Responsible spending

You can obtain a prepaid card for youngsters even below the age of 18. As a parent or guardian, you can acquire a prepaid card and nominate your child as a secondary card holder which is a great way of teaching them the value of money and how to manage their finances. A prepaid card can give young adults the freedom to spend their money freely with no danger of accruing serious personal debt.

Additional benefits

The market leading prepaid cards such as the Pockit MasterCard® offer additional benefits including cashback from major High Street retailers. Not to mention some fantastic savings on holidays, days out, household utilities and many more discounts. This is usually available from many prepaid card issuers for a small monthly fee which can pay for itself with even a single transaction.

Enjoy the simple concept of a prepaid card – load your card with funds and spend safely, within your own limits.

A prepaid card can help you maintain your cash flow when you're on a tight budget