The biggest difference between a pre-paid card and a credit card, is that with a credit card you are borrowing money which you have to pay back with interest, while with a pre-paid card, you load it with your own money before you begin spending and therefore do not borrow any money and do not have any money that you need to pay back, which is great if you have any debt problems as it makes it easier to manage your money.

A pre-paid card can be used to help you to budget your money in a safe and secure way that gives you all the advantages of being able to shop online or by phone, but with none of the disadvantages of using a credit card.
You can load your money on to the card knowing that you will never be able to overspend because the pre-paid card won’t let you.  It is as safer to use than a credit card too because as well as using the chip and pin system that a credit card uses, it’s not linked to any bank account or borrowing so that if it was somehow stolen and misused, there would never be any chance of the thief running up any debt in your name.

Pre-paid cards can be used to help you or even your teenager to learn budgeting skills.  By being able to use a credit style card without any risk of getting into debt, you can avoid all the pitfalls involved with credit cards, but still shop around for the best value and bargains.

Establishing good money management skills and budgeting skills is much easier when you have the ability to shop around by card, but without any risks while doing so.  You still need to pay attention to what you’re spending, and how much money you have left on the card, and there are still fees involved, but they’re much easier to deal with as you can see up front what they are, and you only ever spend money that you already have instead of buying things on credit and having to worry about paying them back.  As long as you take the fees for the card into account, and budget them into your spending, you’ll be able to manage your money much more easily this way.

This particular debit card must be linked to a Metro Bank Current Account and, in order to get one, you must visit one of the eight Metro Bank Branches around London in person. They reckon that it will take you around 15 minutes to sign up, but to be on the safe side it’s best to allow one hour. You will also need to take two forms of ID with you and allow them to run a credit check on you while you wait.

Once you’ve got the new current account open, you don’t need to pay any money into it immediately or to pay you salary into it or anything like you do with a number of accounts these days. In fact, if you want to you can just pay in the right amount of money to cover just your holiday spending.

To get the actual debit card, you literally wait in branch having just opened your account and they create the card for you while you wait! Once you have the card, you will benefit from all of the following:

Free Exchange Loading.
Zero charges when you withdraw money at an ATM machine.
Zero spending charges on purchases.
0% interest charges when you make a Cash withdrawal.

Obviously these features make it an excellent card to use when you travel abroad either for business or on holiday as you won’t find yourself losing huge chunks of money through exchange rates, or as you withdraw the money or make purchases.

You can find Branches of the Metro Bank in Holborn, Earls Court, Fulham Broadway, Borehamwood, Tottenham Court Road, Kensington High Street, Bromley and Croydon. There are also four further branches opening soon in Uxbridge, Houndslow, Ealing and High Wycombe. All branches are open Monday to Friday 8am till 8pm, Saturday 8am till 6pm and unlike most banks they are also open on Sundays between the hours of 11am and 5pm.

The MeCard can be owned by anyone age 13 or above, and is designed in such a way that you get 24 hour access to your account online where you can see transactions and balance, you can add credit to your PAYG mobile phone from your MeCard with a single text, and you can be sent money by mum or dad, or even by friends and family on your birthday or other special occasions.

The MeCard looks and feels very much like a debit card, and functions in much the same way using chip and pin technology. The difference is that with this card, you must pre-load money onto it before you can spend anything, so there’s no way you can go overdrawn.

Because the MeCard is designed for teen use, money can be sent from a registered parent MeCard to the teen MeCard by a simple text. This allows parents to hold money on a parent card and then send it to their child’s card easily. This means that if you wish to let your child have money in a controlled way, or only on pocket money day you can. It also means that if your teen goes away on holiday, or a school trip, or perhaps when they first go off to university, they can text you if they have urgent cash needs, and you can text cash back to them.

Because the MeCard IS aimed at teens, it comes with a few features you wouldn’t get with most pre-paid cards. For a start, it has its own MeCard page on facebook and twitter that MeCard owners can sign up to. MeCard members also get special access to concerts and other events and discounts on all sorts of things from online games to clothes, shoes and even everyday things like books for college etc.

Of course there are some fees associated with the card like there are with all pre-paid cards, such as loading fees, however on the MeCard because you have a parent card and a teen card it works slightly differently.
The Parent card has a minimum loading amount of £10, and a maximum of £500 at PayPoint and Post Office, £300 online by debit card, £3,000 by BACS or wages transfer, and its maximum balance is £3,000.

The Teen card can ONLY be loaded from a parent card. The maximum money share (i.e. the amount passed from the parent card to the teen card in one transaction) is £500 and the maximum balance is £500.

http://www.mecard.co.uk/

This card offers all the convenience of a credit or debit card, but without any worries about going overdrawn or building up large debts. Because you can only spend the amount you’ve chosen to load onto the card, you can stay easily in control of your money and spending.

You can load your card in different ways including loading cash on to it at any PayPoint, or via bank transfer or standing order. You can also ask your boss to pay your wages directly into your speed-e-card account.

There are some charges to be aware of – you’ll pay £7.95 for your card, and if you need to replace the card it will cost you £5.99. If you need your PIN reissued they will charge you £2, and it costs £1.50 per transaction to withdraw money from a UK ATM machine and £2.50 from an international ATM machine.

Point of sale transactions in the UK cost 75p each, and international point of sale transactions cost £2 each. Topping up your card by BACS however is free, as is a card to card transfer. All these fees may sound quite a lot, but you need to balance this against the advantages of never being able to go over drawn, and not paying any interest as you would with a credit card.

Overall, used carefully these cards can be very useful. They are available to many people who can’t get a debit or credit card and make it possible for you to make purchases on the internet safely without risking your credit, debit or bank details getting into the hands of identity thieves.

This card is NOT a credit card. In order to use it you have to load it with money first – this is one of the things which makes it so ideal for use by those under 18.

The card can be used around the world wherever the MasterCard acceptance mark is found. This means that it can currently be used in over 30 million locations including topping up mobile phones, book concert and cinema tickets, train and coach tickets, download music and games, buy dvds, clothes, pay bills and much more.

Topping up the card is easy. You can top up for free with cash at any Phones4U store, at any Post Office branch for a 99p fee, at any PayPoint location for a 3% fee. You can have the card topped up directly from your wages, or by parental top up using a credit or debit card.

Parents may be interested to know that the card is blocked from purchasing certain items – it can’t be used to buy alcohol, cigarettes or adult material which means you can be worry free in allowing your teen to have one. It’s also easy to lock and unlock the card via SMS message so if its misplaced you don’t need to worry, you can just lock it, have a good search and then unlock it when found, or even lock it between purchases for added security.

Because it can’t be used for certain purchases, it also makes it a great way to help out your teen who’s away at university. If they say they’re low on funds for food for example, you can be sure they won’t be wasting any money you put on this card on the ciggies or booze.

There are a few fees involved in owning this card – UK purchase transactions are free, but UK ATM withdrawals cost 99p each, while overseas, purchases are free and you can’t withdraw at ATM machines. The card also costs £9.99 to purchase.

Because the ClearCash card is not a credit card, you can only spend money which you have already loaded on to it and will never incur interest charges for money you spend. This means that you can’t get into debt with it. The card works very much like a credit or debit card when you use it, in that it comes with Chip and PIN for security.

Loading money on to your card is easy and can be done in a number of ways. You can load money by bank transfer, top up at a PayPoint location or at any Post Office branch, or you can have money loaded onto it directly from your employer if you want.

The card comes with two different tariff options – pay as you go, or pay monthly. With the pay as you go option, there is no monthly fee, and it’s ideal for occasional use as you just pay a simple 2.5% fee per transaction and you earn cashback on your purchases. With the pay monthly option, you get free unlimited purchases making it ideal for everyday use, instead paying a simple £9.99 monthly management fee which is taken from the balance of the card each month. You can have your salary paid onto it and you get free purchase protection too.

Checking your balance on your card is easy to do, and it’s important to make sure you do keep an eye on the balance to avoid any embarrassing situations at the checkout. You can check your balance by logging into your account online, registering your mobile phone with the system and texting a simple balance request to a given number which replies with your balance.

Overall, using this card is simple and it lets you do almost anything a credit or debit card can do. It does cost to use it, but by picking the right tariff for you, you can keep these costs low, and as you’re not borrowing money you avoid the risk of getting into deep debt that can occur with a credit card.
To apply for a card, you must be over 18, live in the UK and be able to provide evidence of who you are and where you live.

But what are credit records and credit scores, and how do they affect you?

When you apply for loans, credit cards, mortgages or other forms of personal finance, chances are that the lender will look at your credit records and your credit score. These two checks will play a large part in determining whether your application is successful, and possibly the interest rate you will be charged. Generally, the higher risk you are perceived to be, the higher your interest rate will be.

Credit record
This is simply a record of your financial and credit activities. It will list any loans, credit card accounts, overdrafts, graduate loans and store cards you have, or any other form of borrowing you have done. Usually, it will show your initial balance, your current balance and your payment history. It will track how regularly you make payments and will show if you have missed any monthly payments on any form of finance. It will also record any court judgements against you, for example if you have failed to pay your council tax, and whether you have been made bankrupt. Records are generally kept for six years.

Most financial institutions use one of two credit reference agencies, Equifax or Experian. Anyone is legally entitled to see the information each company keeps on them. For £2 (each), the company will send you the details they have on you.

Credit score
This is a statistical analysis of the risk you present to a potential lender, drawn from your credit record. The higher your score, the less of a risk you are. The score is made up of a number of factors, including your credit record. However, not every lender uses credit scoring and many lenders will also assess applications based on other factors as well as a credit score. A poor score can limit your ability to borrow money or reach your financial goals.

Improving your score
Since your credit score can influence your financial opportunities and can even affect your ability to buy a home and get a job, it’s well worth trying to improve your score and repair bad credit. Here are five tips that could help you:

1. Make sure you’re on the electoral roll: This is one of the key factors credit reference agencies look at. If there is no public record of where you live, your score could fall. You can register at the Electoral Commission.
2. Pay your bills on time: If you have a good track record of making payments, you will be more attractive to lenders. Likewise, if you have a history of missing payments, or defaulting on debts, fewer firms will be prepared to lend to you again.
3. Open a higher than average interest credit card: for which you are more likely to be accepted.  Make sure you manage it properly to help rebuild your credit rating. This means repaying every month in full, spending a little each month for six to twelve months. For most credit cards, this method will only work if you just use your credit card for purchases.  It is important to make sure you make your payments on time and stay within your credit limit or otherwise it will have a negative effect on your credit rating.
4. Check your credit file: Unfortunately, sometimes mistakes do happen, and occasionally fraudsters may try to use your details for their own gain. Make sure the details the credit reference agencies have for you are accurate.
5. Close unused accounts: If you have a credit card or bank account that you no longer use, close it. You are much more likely to forget to contact the company when you move house, or notice if cards or statements go missing, which means you could become a victim of fraud as a result.

It can be used to pay for goods and services in shops, restaurants, hotels etc. just as you would your regular debit or credit card, and you can also use it to withdraw money at ATMs in the country you’re visiting too.

Cash Passports can be obtained in seven different currencies – British Pounds, Euros, US Dollars, Australian Dollars, Canadian Dollars, New Zealand Dollars, and South African Rand, and can be used in any country where these currencies are used. When you load your card, you can lock in the rate of exchange, and the cards can be bought online or in any Thomas Cook or Going Places store.

Because the Cash Passport isn’t linked to your bank account it’s secure to use, and if the worst was to happen and it got lost or was stolen, it comes with 24/7 global emergency assistance so that the card will get cancelled, and replaced with a new one giving you peace of mind that you won’t be left without cash, and you won’t need to worry about informing you bank or anything else while you’re away.

The Cash Passport is convenient too as millions of ATMs worldwide and millions of stores and other locations will accept it – where ever you see the Visa or Plus logo or MasterCard Acceptance Mark (depending on which type of Cash Passport you have) in fact. You don’t need any bank details to obtain one, all you’ll need is photographic ID such as your passport or driving licence.

You can manage your card balance online too, and find out where your nearest ATMs are as well as loads more. Unspent funds can either be withdrawn at an ATM, or you can cash them out, or you can just leave them on there for your next trip. What’s even better is that you can save for your holiday through the year by loading cash onto the card every month or just when ever you have a bit spare if you want to. Each Cash Passport card is valid for four years and can be re-loaded as many times during that time as you want. You can even register your mobile phone number in the ‘my account’ details online so that you can be sent low balance text alerts when the card balance drops below £100.

http://www.cashpassport.com/1/en/thomascook/

No ATM charges when overseas.

No fees, commission, or extra charges on your transactions meaning a restaurant bill in Paris for €150 actually costs you €150.

Simply load the card using your UK debit card either online, over the phone, or via text.

Lock in the exchange rate when you load the card.

It’s a MasterCard card meaning it can be used anywhere you see the MasterCard Acceptance Mark whether in a store, online or at an ATM.

http://www.caxtonfxcard.com/cards_description.asp

A pre-paid card works in a similar way to a credit or debit card when you are shopping with it. However, unlike a credit or debit card, you can’t make a mistake and over spend because you pre-load it with money first, and then spend what’s on there.

Some elderly people start to struggle looking after their finances for a variety of reasons. Sometimes it’s just remembering things like PIN numbers, or how much they can afford to spend. Sometimes it can be even more worrying things such as sharing information with the wrong people, or leaving belongings like purse or wallet behind in public places.

If you help to care for someone who is struggling in any of these ways, getting them a pre-paid card might be one way to help them minimise problems and stay more in control. Because a pre-paid card isn’t linked to your bank account it can’t be used to gain access to any of your other finances. This means that if it were left somewhere it shouldn’t be, a potential thief couldn’t gain access to your relative’s bank account or run up a huge bill as they might be able to with a credit card.

Having a pre-paid card to use could make your elderly relative feel like they’re in control of everything while at the same time letting you keep peace of mind knowing that they can only spend up to the amount you’ve helped them to load onto the card, and no more until it’s re-loaded.

Another useful thing with pre-paid cards is that they can be given to someone else to use. So for example, if your elderly relative is in full use of all their faculties, but is struggling to get around these days and needs you to go out and do shopping or pay bills for them, this could be a very useful way of them giving you money to do this with, without you having to have access to their personal banking details.

All they would need to do is to load the card with a fixed amount of money in advance. Depending on the card, this can be done online, and at many post offices, or PayPoints and with some cards even by mobile phone. They would then give you the card, and you could go out and do shopping, pay bills, and even get cash out for them all without the need for them to give you their bank details.