5 Frequently Asked Questions About Prepaid Cards

5 Frequently Asked Questions About Prepaid Cards

When applying for prepaid credit cards in the UK, what can you expect? Here are five frequently asked questions (FAQs) on the topic:

1. How does a prepaid card work?

They are just what they sound like: you pay a fixed amount upfront. Then you get to spend up to that amount using the prepaid card. Therefore, if you load 100 on to the card, you get to spend 100 and no more. If you want to spend more, you need to put more money on the card. This reduces the risk to the company, because you are paying them upfront.

2. So how does the company make money?

After all, since there is no risk of you defaulting, they are not going to make any money in interest rates. For this reason, they usually will charge between 5-10 for applying. In addition, in some cases you are charged a price every month. Some of them might charge you each time you add more money as well. Look for prepaid cards that have the lowest fees.

3. Will your credit score be checked?

No, it will not. After all, since you are paying for everything upfront, there is absolutely no risk to the company at all. Therefore, they do not care about your financial history. For this reason, if you were unable to get a credit card because of a bad credit score, this would be a great choice for you if you needed a card to make payments online, etc.

4. Who can apply?

They are available to people from all walks of life. The requirements for approval are very basic and, in some cases, it is as simple as being a UK resident.

5. What information do you need to give when applying?

The main things are your name, email address, date of birth, and mobile phone number. In many cases, that is it.

Prepaid credit cards are a great option if you have been turned down for a regular card. They will force you to only spend what you have available, and therefore can help you learn good financial habits. Just make sure you compare prepaid credit cards before applying and find out which ones have the lowest fees.

POST COMMENT

Prepaid Cards: The Advantages Why Your Credit History Doesn't Matter To Prepaid Cards Prepaid Card: Different Than Debit Using The Law Of Attraction Consciously Part 1 Government Grants Opportunities – How To Eliminate Debt With Ease Pay Off Debt Government Grants - Relief Yourself From Debts Free Debt Relief Government Grants - Apply For Federal Assistance Government Grants For Debt Relief – Easy Access To Free Money Debt Relief Government Grant – Know The Requirements To Pay Off Debts Government Grant Money For Debt Relief - 100% Free Money For Cleaning Debts Free Debt Relief Government Grants – Obama's Debt Assistance Plan Apply For Debt Relief Government Grants – Know How To Be Granted National Debt Relief Government Grants – Thousands Of Dollars Available