Prepaid credit cards

So as a student, how would a prepaid credit card work for you? A prepaid credit card works like a prepay mobile phone. You pay credit in advance of using it.

It’s a great way get the benefits of a credit card, without running up a debt. However, the fees can be expensive, so think carefully about whether it’s worth it.

It can be used at shops and online, like a normal credit card.

• You won’t be charged interest
• There will be no late payment fees
• You won’t run the risk of getting into debt
• You will have the convenience of a credit card, which is particularly handy for international travel or shopping online

• You will have to pay about £10 to join the scheme
• There’s a monthly charge of about £5
• You may have to pay a transaction fee

A prepaid credit card is a good option if you have been refused credit but still want the functionality of a credit card. But even if you have been offered a credit card, you may want to consider a prepaid card, if you are worried you will run up a debt on a credit card.

It’s all too easy to get into debt if you don’t keep your spending in check. So we’ve put together some hints and tips to help you manage your money and get the most from your student days.