No credit check required
Spend only what you load - no risk of debt
Full card convenience - use anywhere
Applying for a prepaid card using Money Expert is much easier than applying for a standard credit card since credit checks are not necessary. Simply have a look at our comparison tool and select the card which appeals to you most. From then on all you need to do is send off your application and load up money to spend.
A prepaid card is a payment card you load money onto before you spend it. You can't spend more than the balance on the card, because you're not borrowing anything, unlike a standard credit card. Once loaded, it works much like a debit or credit card in shops, online and abroad, though some transactions that require a security deposit or preauthorisation, such as car hire or hotel bookings, may not accept prepaid cards.
The main benefit of using a prepaid card is the reduced risk factor they carry compared to traditional credit cards. The ability to save time and money by shopping online and being able to withdraw currency abroad is generic to all cards and still applies here, but there is no chance of ending up in large amounts of debt with a prepaid card since you cannot spend what you do not load onto it. This is a benefit to many who find it harder to control their spending with a standard credit card. The fact that no credit check is necessary when applying for a prepaid card is also a benefit to many, particularly those who may struggle to get accepted for a standard credit card.
The main drawbacks are that some providers charge fees for loading money, withdrawing cash, or inactivity, and prepaid cards don't carry the same purchase protection (Section 75) that standard credit cards offer on qualifying purchases.
A prepaid card doesn't run a credit check and doesn't report your activity to credit reference agencies, so using one has no direct effect on your credit score. A credit-builder card is a genuine (small-limit) credit card, and your repayments on it are reported to credit reference agencies, which is what can help build your score over time.
With online shopping becoming more and more popular due to the convenience and reduced prices, being able to pay by card is becoming more and more important.
Most online retailers accept prepaid cards, though acceptance can vary and some transactions may not be supported. This, coupled with the security of not spending borrowed money, means prepaid debit/credit cards are increasingly popular, particularly among younger people.
A prepaid credit card can be a good way for someone with a bad credit rating or history to continue to be able to spend money online, and wherever a card is necessary. Because no money is being borrowed, the card provider requires no credit check or security before they provide you with the card. More on credit cards for those with bad credit.
Prepaid cards have become a very popular way for parents to give their kids a bit of pocket money. The parents can load money onto the card whenever they choose, leaving them able to provide pocket money with the freedom of being able to spend it wherever they want, including online.
Prepaid cards can be a useful tool for managing your finances, consolidating a certain amount of spending money in one place so that you can worry less about your spending.
Money Expert has been helping people compare and save since 2003. We show you credit cards from a range of UK providers, so you can compare features and apply for the card that suits you.
