CreditCards Blog

Hi, ive done a search but couldnt find any info anywhere.

Does anyone have one of these, has it helped improve your credit file or have i just signed up for a 60 tacky paperweight!

Is having a prepaid credit card actually benefit to anyone?

Thanks

Is it the one where you pay monthly and it counts as a loan?

As it essentially as creates a loan which then reports to the CRA's and give you lots of lovely green Os it should be beneficial to you. Give it a good six months xx

Is it the one where you pay monthly and it counts as a loan?

Yer you pay 4.95 a month for 12 months and they put it on your credit file as a loan, My credit file really needs a boost so fingers crossed this will help! especially as my big debt will be paid off in Jan 09 leaving just lots of little ones now.

Thanks, ill leave it for a few months before i expect it to make any sort of difference on my file!!

It should definitely have a beneficial effect. I have to say I'm a little confused as to when they start reporting your positive payments. It says on the website that they'll report your loan has been paid off, but I'm also very sure that I read they start reporting positive payments after three months and then monthly after that.

This means that we should see the benefit after 3-4 months.

Ps. The 'loan' will appear as a credit and a debit for the same amount on your statement. All you then need to do is pay a fiver a month onto the card for the next 12 months.

A big thumbs up to Cashplus for this scheme (no, I don't work for them!)

Definatly a thumbs up, anything that gets me closer to being able to buy myself a house in 5 years time is Fabby in my book!

not sure i understand this...

What am i getting for my 4,95 a month

not sure i understand this...

What am i getting for my 4,95 a monthIt counts as you repaying a loan :)

It counts as you repaying a loan :)

So for 4.95 i'm not actually getting something ?

Just so i can have a zero on my credit record ?

How bad would my credit record have to be to need to do this ?

Darren

So for 4.95 i'm not actually getting something ?

Just so i can have a zero on my credit record ?

How bad would my credit record have to be to need to do this ?

Darren
Hey, no one is forcing you :)

THEY ARE AN ABSOLUtE RIP-OFF.

You are willing to pay 4.95 a month to be charged 2.00 everytime you withdraw money ?.

They are plugged to the very people who can afford them least, if you were load 500.00 a month on it, up to 50.00 gets taken on fees.

Open a basic bank account instead, you'll get a debit card.

Hey, no one is forcing you :)

It's just i didn't understand the rason for paying 4.95 a month...
Surely the best option for that money is paying back a debt that you owe ?

How much improvement to a credit record does this do ?

Darren

My credit score is really bad & i have no credit anyway, so this is a way of bulding up credit & correcting some bad stuff on my file.

Its 4.95 a months which isnt very much really & only for 12 months, I only have 2 debts on my credit file which are almost paid off, but they will sit there looking ugly for the next 5 & 6 years, however if i have someone on there who has given my credit & i have paid it of on time for a year, it will put me in a better position to apply for a credit card to help improve my credit even furthur.

Why don't you save 5 a month for 12 months?

Do you NEED any more credit?

Yer i do if i am to get out of this flat with mould growing on the walls and broken doors and windows and get into a nice house to raise my daughter

A Pre Paid Card Is Not Credit Btw, You Are Paying 4.95 A Month For Nothing

Yer i do if i am to get out of this flat with mould growing on the walls and broken doors and windows and get into a nice house to raise my daughter
Ah so a mortgage? Do you think you'll be able to save a house deposit in 6 yrs? (ie: the time your defaults still show for) If not, don't worry about a credit builder card. :)

Shouldnt be to hard, i'll be *fingers crossed* debt free by Jan 2010 then starting to save for a deposit.

Shouldnt be to hard, i'll be *fingers crossed* debt free by Jan 2010 then starting to save for a deposit.
How bout put that 5 a month to start your deposit? hold off on the credit cards for a couple of years.

A Pre Paid Card Is Not Credit Btw, You Are Paying 4.95 A Month For Nothing

Actually, that's not true. You are offered c. 60 a year that can only be used to pay your 4.95/mth fees. You have to sign a legally binding credit agreement, so it is credit.

How bout put that 5 a month to start your deposit? hold off on the credit cards for a couple of years.

I'm fairly sure that like myself, laurenjs88 is using this to improve her credit history. You can't get a mortgage with no/bad credit history typically, so we need to prove that we can manage our accounts sensibly, by showing some positives as well as the defaults that will sit on our files.

Hopefully future posters will consider the product offered a little more before directing comments at those of us using it that border on the cheeky.

This isn't intended as a bank account substitute for most people that I know who use it and we certainly aren't looking for cash advances (these are extortionate on any form of credit card, whether prepaid or not). Also, I don't think we want a credit card per se.

What we are looking for is some way to start rebuilding a history of reliability. I think that's worth 4.95 a month, as I can't get credit anywhere else to begin with.

Just get a basic bank account and operate it wisely, paying 4.95 a month plus withdrawal fees is folly.

Try a Vanquish CC - they seem to hand them out to most people - are free but have a horrendous APR. But if you do not use it, you still get the lovely green o's on your credit file.

Just get a basic bank account and operate it wisely, paying 4.95 a month plus withdrawal fees is folly.

Please show the courtesy to actually read what I've written. I don't think many people are using these in lieu of a current account, so your comments on withdrawal fees are somewhat redundant. You can't show the ability to meet repayments with a basic bank account, as they don't offer any form of credit.

Anyway, I've already responded specifically to this comment when you said almost exactly the same thing in a previous post...

Try a Vanquish CC - they seem to hand them out to most people - are free but have a horrendous APR. But if you do not use it, you still get the lovely green o's on your credit file.

I can't even get a Vanquis credit card (I've tried!), so this was a last resort. I only have one default, but the account is unsatisfied and I've moved house 10+ times in 8 years :D

Thankyou Edinburgher for your comments and clarity.

It is beneficial to take out these cards if you have a poor credit history and want to rebuild it. NOT as a form of credit as the APR is so high.

This is because these cards report to the credit ratings companies eg. Equifax, Experian positively, resulting in an improved credit score.
The 4.95 monthly loan repayments will show as green O's, which are what you want on your credit history.

This is because it increases your chance of getting future credit eg. a mortgage and negates the effect of poor credit eg. defaults, CCJs.

Please refrain from criticising people who take out these cards and make unconstructive comments about "saving 5 a month" as the whole purpose of these cards is to IMPROVE YOUR CREDIT RATING. For further info, please see what Martin has to say on the main site. It is thanks to his recommendation of this card that I have been able to improve my credit score and as well as many other MSE'rs.