As personal debt levels soar across the nation prepay cards are becoming more and more popular. There are more than one million of these cards already in circulation.
The aim of a repay card is to help the millions of people who cannot get a bank account or credit card. It acts like a debit card but unlike debit or credit cards you can’t go overdrawn. They are therefore potentially very useful for feckless teenagers!
Your spending is strictly limited to the amount you put on the card, like a mobile top-up. The spending limitations make it an alternative for the nervous parent or for those who have leanings towards spending beyond their means.
See our picks for the best low rate credit cards on the market Prepay cards are heavily marketed at the young A wide choice of prepay cards are on the market and many are being touted to readers of teen magazines such as Smash Hits and Bliss, among others. For those who need their caffeine fix, Starbucks recently unveiled a card aimed at those who don’t have the right change for their beverage.
The Starbucks card can be loaded with cash from £2 up to £150 and topped up in branches with cash, card or over the phone. Before you jump in and purchase one, there are hidden costs for the convenience you should be aware of. Read on as I reveal the best and worst of the pack.
Click here for top credit card balance transfer offers Watch those hidden charges The first charge you will run into is often the one-time set up fee. This fee can range from £5 on the 360money Splash plastic card to £20 on the Amex travellers cheque card.
Other charges can include paying for a pin number. The Bluecorner prepay card charges £1 for this privilege. Compare the wide range of prepay plastic to ensure you don’t end up with the joker of the pack.
| Issuer/card | Setup fee | Monthly fee | ATM fee | Replacement fee |
| Quidity | £0 | £0 | £1.50 | £5 |
Cash2Go | £0 | £0 | £1.75 | £3 |
| Western Union | £0 | £0 | £2.00 | £5 |
| Travelex | £0 | £0 | £2.50 | Free |
| 360money Splash | £5 | 99p | 99p | £5 |
| Liquid | £9.95 | £2 | £1.00 | £5 |
| CashPlus | £9.95 | £4.95 | £2.00 | £9.95 |
| Amex Travellers cheque | £20 | £0 | £1.50 | Free |
Save a packet with our selected new purchases card offers Avoid automatic monthly fees If a prepay credit card has automatic monthly fees, don’t go for it. Look for a prepaid credit card that only charges a fee if the card goes unused for an extended period of time. Some providers charge fees for statements which can vary from £3 on the Western Union card to £5 on the Quidity card.
But it also costs you to load your prepay card up with money. On the Bluecorner card, charges range from between 85p for small amounts up to £3 for amounts over £100. So if you loaded your card up to the maximum of £1,000, it would end up costing you £15 to do so.
Furthermore prepay cards are normally only valid for 12 months and you can be charged up to £10 for a new one. Overall the best value prepay is probably the Quidity card and the worst for charges is Cashplus Gold.
Upgrade to a gold or platinum card from our best buy selections The best and worst teen prepay cards Several prepay cards are aimed at the teenage/young adult market for those who are too young to have a credit card. Youth brands such as Bliss magazine and Smash Hits are offering cards.
Ministry Of Sound have launched a prepay card with a dual purpose. The purposes being to capture the youth market with a branded trendy product and get them into a spending pattern be it a positive one or one that leads onto future credit card spending. Here are the leadingprepay cards aimed purely at teens.
| Issuer/card | Setup fee | Monthly fee | ATM fee | Replacement fee |
| Smash Hits | £9.95 | Free | Free | £4.99 |
| Bliss | £9.95 | Free | Free | £4.99 |
| Extreme Sports | £8.95 | Free | £1 | £3.99 |
Get yourself a gold or platinum card with a top offer The teen prepay cards that seem the best value are Bliss and Smash Hits, whereas Extreme sports ATM charges could soon mount up. The worst is the Ministry Of Sound card which costs £9.99 to setup but details were vague about ATM charges with no further information on their website about additional fees or charges.
All in all, prepaid credit cards can be an excellent tool for those who have poor credit or those who cannot have a regular credit card for any other reason. Always read the small print and check for charges to find the best value prepay for your wallet.
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