Prepaid Cards - the Easy Payment Card
It looks like a credit or debit card and is provided by one of the main companies - such as MasterCard, Maestro or Visa. It has a magnetic strip, Chip and PIN security, and a long card number. It even has a choice of a great design. So what is the difference between this and a regular credit or debit card?
The difference is big - a prepaid card does not give you access to a line of credit or borrowing facility. That means you cannot go overdrawn or fall foul of over-borrowing. Basically, you are loading the card with your own money. Once the funds on the card have run out, it is up to you to top it up.
Hang on - what is the point of that?
Ok so you have a brain, and you might be wondering what is the point of loading money on the card when you could just spend cash. Well, it is simple: using a prepaid card means you are able to budget - something we could all do with some help on. It also means you can make payments online - something which is impossible with cash. It also means your money is all in one place and easy to access. If you lose your card, you can have it replaced - something which is not possible if you lose a twenty pound note at the pub or on the street!
For those who are a bit younger, Mum and dad can get a prepaid card and give their teenage kids a separate card, which they can then load with funds. So if you're out and about and stuck, and have run out of funds, you can give your parents a call and ask that they top up the card (hopefully they will say yes!)
There are loads of prepaid cards available now, so it is a really good idea to have a thorough look at the options. It isn't worth getting a card that isn't getting you the best deal. Remember, there may be fees associated with the card, so you'll want to compare these too.
Poor Rating Credit Cards - Build Up Your Rating
This card is great for the many people who have been refused elsewhere on a card application
It is never easy to have a good financial track record, and when you have been concentrating on your studies, it might have been hard to build up a good history. When you're worrying about paying the rent while getting the best marks, life can be tricky - and then you graduate only to see your rating less-than-perfect.
A Poor Rating Credit Card is designed just for this scenario - you are considered even if you have a poor credit history and can build up your rating so that eventually you can move on to the mainstream and be taken seriously by credit agencies and banks.
If you are thinking of the future - perhaps you'd like to settle down one day, maybe even buy your own home - you will need to be able to prove that you are are someone the bank can trust. For that reason, you are more than likely going to need a credit card in order to make frequent mortgage payments. If you start being pro-active now in order to improve your financial history, you will be thankful when you need to rely on it!
Again, as with all financial products, it is a really good idea to find out as much as you can before committing. What are the fees? What is the interest charged? What is the provider's policy?
