More and more banks are tightening their rules regarding applicants with poor credit. That’s why more and more people are getting a bad credit prepaid card.
If you have a County Court Judgement, default or even a missed or late payment on a loan or credit card then you may be finding it difficult to get your card application agreed.
A prepaid cash card offers many of the same benefits as a traditional debit or credit card but is often available to people with a less than perfect credit history so they could provide a solution if you're finding it difficult to get credit elsewhere.
How prepaid cards for bad credit work
Prepaid cards work in much the same way as a traditional debit or credit card.
You can use it to buy goods and services both online and on the high street, and to withdraw cash from an ATM.
However, the main difference that so-called ‘poor credit cards’ offer is that there is no credit facility, no pre-agreed borrowing and you pay no interest as you never actually borrow from the bank. You can only spend the money you have already loaded onto the card.
What this means is that as there is no credit or borrowing, many banks will not even credit check you if you’re looking to benefit from the best prepaid cards for bad credit.
Finding the best cash payment card for bad credit
There are dozens of bad credit payment card deals available and so it’s important that you shop around before picking a card.
It's important to find the prepaid cash card that offers the benefits you need with the lowest fees, otherwise the cost of running one of these cards could be significant.
Choose your card carefully and make sure you compare the card charges for UK and foreign transactions, ATM withdrawals, topping up your card and the initial cost when you take out the card
Benefits of the best bad credit prepaid cards include:
- Wide acceptance: many cards display the MasterCard or Visa logo meaning they are accepted in millions of locations worldwide
- Guaranteed approval: most prepaid cards are available with no credit checks meaning they are the perfect cash payment card for bad credit
You can use our prepaid cards for people with bad credit comparison table to search for the best bad credit prepaid cards on the market.
