Prepaid Debit Cards - The Ideal Card for Bad Credit

 If you have poor credit, then obtaining a conventional Mastercard or Visa card can be difficult. Prepaid debit cards are accessible to everyone regardless of credit history and can be used at the same places a conventional debit card can. Prepaid cards are ideal for budgeting as you only load the amount of money onto the card that you wish to spend. They are safe and secure as there is no need to reveal your bank details, cutting the risk of conventional credit card fraud.

Prepaid debit cards as available with the Mastercard, Visa or Maestro logo. Each of them offer much the same service, although it is worth noting that prepaid Mastercards do not allow online gambling transactions. All prepaid cards can be used in the UK or abroad, online or offline and most can also be used to withdraw cash at cash machines both in the UK and abroad.

Some cards are truly pay as you go whilst others charge a small monthly fee. The type of card you choose depends largely on how much you intend to use the card - if you are going to be using the card a lot, transactions are generally cheaper or even free if custom cork coasters opt to pay a small monthly fee. If you only intend to use the card occasionally then pay as you go will probably work out cheaper.

Generally, everyone can be accepted for a card and there is no ID and no credit checks needed. If you want to store more than a small sum on your card however, you may need to provide some basic Id to comply with money laundering regulations.

One benefit of prepaid cards which is often overlooked is the fact that they can be used to rebuild credit. Some prepaid debit cards have the option to report to credit reference agencies which can help improve your credit - even though you are not borrowing any money! Another benefit is that they can be used as an alternative to a basic bank account, as most cards will allow your salary, wages or benefits to be credited directly to the card. You can use your card to pay your bills or withdraw money from the cash point - just like a basic bank account. If you are having problems getting a bank account because of bad credit or being new to the country, it is worth considering a prepaid debit card as a temporary solution.