Prepaid Credit Cards Uk

Prepaid credit cards are by definition not credit cards in that credit is not available on them. How they work is that the user loads them up with money in advance and that money is then available on the card, which can then be used like a normal credit card.

Most users of prepaid credit cards in the UK fall into three categories. First, are young people whose parents or guardians want them to experience using a credit card but without risking them running up large bills. Secondly, are people who have bad credit ratings or are subject to an Individual Voluntary Arrangement and thus cannot apply for a normal credit card. Thirdly, they can be used as a handy way for taking money abroad, and the charging structure on some cards is geared towards this market.