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Who and what is a prepaid card good for?

Who and what is a prepaid card good for?

Category: Credit cards

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A great alternative to bank accounts and credit cards, prepaid cards are easy to set up and offer a safe way to shop online or in stores worldwide. Anyone looking to curb their spending can easily budget by loading up their card when they want with no monthly account charges or interest.

These pre-paid cards are ideal for students just starting out at university. Use your student prepaid credit card in the same way you would a mobile phone, all you need to do is top them up before you use them. Brilliant news for those of you who have a habit of going overdrawn on your spending as you won't be able to spend what you don't have. It's also a great way to keep your student debts from spiralling out of control.

Prepaid card review

Advantages and disadvantages of using a prepaid card

A brilliant way to manage money. A credit card without the hassle but with all the advantages. Ideal for teenagers (some cards allow you to order cards for children over the age of 13) and students as they can't get into trouble with them!

Information With a no interest prepaid card there is no interest to pay and no late payment fees, however there is normally a one-off payment of about £10 to buy the card, and some cards have a monthly charge, so read the terms before you apply.

Cashplus Gold Prepaid MasterCard

Cashplus Gold prepaid mastercard logo

The Cashplus prepaid card offers an easy way to budget and a great alternative to a bank account or credit card. It comes with free Purchase Protection and can help improve credit rating at no extra cost.

Cashplus is a safe way to shop online or in stores worldwide, in fact, wherever you see the MasterCard acceptance mark.

Cashplus at a glance:

Tick No credit checks
Tick No links to your bank account
Tick No contracts or tie-ins
Tick No interest or penalties to pay
Information Order additional cards for teenagers over the age of 13.
Tick If you're over 18 and live in the UK, you're guaranteed* to be approved for the prestigious Cash Plus Gold card.

*Subject to terms and conditions including applicant providing acceptable ID, being a UK resident & aged 18 years+.

Cash Plus Gold prepaid card review

Very useful as a saving scheme and for purchasing goods over the internet. It's pretty easy to top up at the Post Office or by a payment transfer from your bank account. The money is usually in your account the next business day. Unfortunately you have to phone up customer services to get your pin. Beware of their customer services premium rate numbers as these can be costly. Find a local or 0800 number for them on "saynoto0870.com".

Freedom Eagle Prepaid Cash Card

The Freedom Prepaid MasterCard is available online for a one off price of £9.99.
It is fully re-loadable up to £3,000 and is accepted worldwide, at over 28.5 million locations and at 1.5 million ATMs which display the MasterCard Acceptance Mark.

The Freedom Prepaid MasterCard is the UK's first retail instant issue, fully re-loadable, embossed Prepaid MasterCard with chip & PIN security that enables you to make purchases without filling in any forms, undergoing any credit checks or having a bank account.

Freedom Eagle Cash Card review

Advantage Free Insurance Protection on all purchases made when using your prepaid Card
Advantage The ability to improve credit ratings with Credit Booster™ for Free
Information A low cost cheque cashing service, linked to the card
Information Low cost international telephone calls, anywhere in the world
Good point In addition to the above features, it's now possible to activate your card and retrieve the PIN within minutes so that the card is ready to use.
Good point Freedom's voice activated telephone system allows you to request a PIN reminder, get your balance and last 4 transactions, and block or unblock your card. It's completely secure as the system meets the rigorous standards set by the Payment Card Industry.

Kalixa Prepaid MasterCard

Kalixa prepaid card

You can sign up for a Kalixa Prepaid Card in 2 minutes and choose your four digit PIN at registration. Once your registration is completed, the personalised chip & PIN card will be delivered in 5-7 days.

Kalixa® is the combined prepaid MasterCard® and eAccount that puts you in control of your cash. New cardholders can get started by depositing as little as £10 - which covers the one time registration fee of £4.95. With Kalixa there are NO monthly account charges and NO charges on transactions using the MasterCard in a shop or online. An electronic deposit to the card is available at 99p, and the card has a high maximum limit of £9,000.

You don't need a credit check and new cardholders only require a valid email address, a valid postal address and an initial load of £10 which can be made online via a wide range of supported deposit methods.

Kalixa at a glance:

Beware Card Issue Fee - £4.95
Good point Monthly Fee - FREE.
Good point Transaction Fee UK - FREE.
Watch out for ATM Withdrawal Fee UK - £1.75.
Watch out for Reload Fee - £0.99 (Barclays), £1.95% via Credit/Debit card & FREE via Salary Transfer.
Good point Foreign Usage: MasterCard branded and accepted at over 29.5 million retailers around the world as well as at over 1.5 million ATM's to withdraw cash.
Beware Only available in GBP so using your Kalixa card abroad will incur a 2.75% Foreign Exchange fee.

Kalixa Prepaid Card Review

Kalixa prepaid card has a competitive fee structure and excellent customer service. Free transactions in shops and a fixed ATM cash withdrawal fee make this a good all round prepaid card. Beware that this card is not ideal for use in countries accepting Euro/Dollars only as it's only availabe in GBP. Watch out when making calls to their Customer service Centre. Find a local or 0800 number for them on "saynoto0870.com" or email them instead.

More money saving tips:

Check our prepaid card tip 'join the plastic revolution' for more information about prepaid cards and their uses.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.