Prepaid cards are an alternative to cash when it comes to spending money; you don’t even need to open a bank account to have a prepaid card.
In our guide below, we explain the uses of a prepaid card in the UK, as well as how to compare prepaid card providers to get the best one for you.
A prepaid card works almost like a pay-as-you-go card in that you load money onto it which you can then use to spend money in places that accept prepaid card payments.
They are ideal if you don’t have a bank account, or if you don’t want one, but you want the safety of having cashless payments.
When you first get a prepaid card, you will have to load it with money and then you can continue to top it up when it runs out or just as and when you need money.
It works almost like a pay-as-you-go phone and unlike a regular credit card, you’re not borrowing any money so you can’t get into any debt with a prepaid card.
There are several ways that you can top up your prepaid card, including:
Prepaid cards are perfectly safe to use and if you don’t feel very comfortable carrying a lot of cash on you, they can be a great alternative to having cash or using a standard bank card.
It’s important to register your card as soon as you get it and make note of the phone number on the back of your card so you can call it if your card is lost or stolen.
Choosing the best prepaid card for you depends on what you want to use the card for.
If you’re looking for a travel-specific prepaid card, make sure you look out for a card that has low withdrawal fees from ATMs and no fees or charges for spending abroad.
If you want to get a prepaid card that helps you limit your spending so you don’t end up spending too much money, look out for a card that offers spending limits and caps.
Take a look below at some of the best and most popular prepaid cards in the UK.
There are so many things you can buy with a prepaid card and there are different cards for different purposes. Prepaid cards can be used in place of a standard debit or credit card in most cases, so you can pay for all your regular purchases such as groceries, household bills, petrol, online purchases and much more.
There are also specific prepaid cards that can be used for different reasons and purposes. Below you can find a list of some of the most common purposes and reasons for prepaid cards.
There are several pros and cons of prepaid cards that you should be aware of, take a look at some of them below.
Unfortunately, unlike regular credit cards, a prepaid card won’t help your credit score as you’re not borrowing the money and then paying it back. Instead, you preload money onto the card and then spend it until it’s gone, so it almost helps you to avoid debt.
If you’re looking to get a card to help improve your credit score and credit rating, a prepaid card isn’t the way to go; you need to look at a credit builder credit card.
As prepaid cards don’t affect your credit score, there are no credit checks when you want to get a prepaid card. You don’t even have to make a traditional application as you can get one from places such as supermarkets, petrol stations, drugstores and even online.