There are an increasing number of prepaid credit cards being launched in the UK. Some are specifically targeted at teens, and are available to under 18’s whilst others offer fully branded prepaid Visa or MasterCards with Chip and PIN capability and high reload limits. Many of the prepay products available have different pricing structures and fees, and it can become difficult to select the product that best suits your needs. They are also beneficial when taking money abroad as a safer alternative to foreign currency.
The main benefit to having a pre paid credit card is the additional layer of security. As the card as pre-paid you can only put money you actually have on the card, meaning if should the unfortunate happen and the card go missing, you won’t receive a statement the following month advising you that your credit limit has been reached and you owe said amount.
The above makes them perfect for travel and many now refer to these cards as bank travel cards, travel credit cards and travel bank cards, whatever the name they all offer the same benefits, rather then carry around your holiday money, preload it onto your pre-paid travel card and pay as you would a standard bank card. By using the below comparison table you may be able to find one of the best travel credit cards for your needs.
Based on the above this makes them extremely popular with parents looking to give their children a little bit of extra freedom when it comes to money, rather then see them out with friends where money can easily get lost or stolen, the cards provide the extra security of having a security number and are less likely to be seen as a target then cash.
The pre-paid credit cards are often referred to as travel cards simply because their most common use is for traveller needs. With most being provided with the Visa or Mastcard link they can be used anywhere a bank or credit card can in exactly the same manner.
There is no need for a credit check when applying for a prepaid credit card as they are open to everyone and anyone and some cards will even help improve credit scores.