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Prepaid card disadvantages

You will not be able to improve your credit rating by having a prepaid card, like you would with a regular credit card. Having a credit card proves you are worthy of credit and therefore can help restore your credit rating. (See our pages on credit reports.) More...

With a prepaid card, you use your own money and not that borrowed from a financial provider.

Other disadvantages include:

  • A fee of approximately £10 to join the scheme
  • A monthly charge of about £5
  • Transaction fees
  • ATM charges
  • Possible charge for closing account.