Credit Building Prepaid Cards

Credit building prepaid cards are designed for those who have no credit history, or who have a poor credit rating. They usually incur a monthly fee, which is then used to repay a 'loan' (for the amount of the fee). If used properly (all monthly payments are made on time), a credit building prepaid card can improve your credit rating and enable you to obtain more affordable credit in the future.

  • Standing Order, Direct Debit & Bill Payment facility
  • No monthly or annual fees
  • Credit building option available
  • Embossed cards with your own account number and sort code
  • Instant approval if you are over 18 and a UK resident
  • Must be a UK resident, aged 18 years or over
  • Set Up Fee
    £4.95
    Reload Fee
    £0
    ATM Fees
    UK: £0.75
    Abroad: £1.50
    Transaction Fees
    UK: £2.50
    Abroad: £2.75
    Credit
    Check
    No
  • Free on cash withdrawals for first 3 mths - normally £2
  • No monthly fees for first 3 months - normally £4.95
  • Credit builder option (with Cashplus Deluxe)
  • Instant approval if you are over 18 and a UK resident
  • Must be a UK resident, aged 18 years or over
  • Set Up Fee
    £4.95
    Reload Fee
    £0
    ATM Fees
    UK: £2
    Abroad: £3
    Transaction Fees
    UK: £0
    Abroad: £0
    Credit
    Check
    No
  • Exclusive! - Apply through UK CreditCards.com, load your card within one month, and you will be entered into a prize draw to win £500
  • Receive your account number and sort code in minutes!
  • Creditbuilder provided by Advanced Payment Solutions
  • Instant Approval Guaranteed (if UK resident and 18+)
  • Standing Order, Direct Debit & Bill Payment facility
  • Creditbuilder provided by Advanced Payment Solutions
  • Must be a UK resident, aged 18 years or over
  • Set Up Fee
    £4.95
    Reload Fee
    £0
    ATM Fees
    UK: £0.50
    Abroad: £1.50
    Transaction Fees
    UK: £0
    Abroad: £2.75
    Credit
    Check
    No
Show More Results

How Do Credit Building Prepaid Credit Cards Work?

Credit building prepaid credit cards work in the same way as most other UK prepaid credit cards and share many of the standard features and benefits you would expect from them:

  • They are loaded by a payment from an alternative source (bank account, credit card, top up within certain retail stores etc).
  • Loaded funds can be withdrawn from ATMs which display the symbol of your prepaid credit card platform provider (Visa, Mastercard etc. - although most ATMs tend to be universal these days).
  • They can also be used for making payments within 'bricks & mortar' (some even have contactless credit card functionality) and online shops. Remember, many prepaid transactions incur a fee (this is the way many prepaid credit card issuers actually make money).
  • Many prepaid credit card issuers offer an online portal where customers can view their purchase history.

Where prepaid credit builder cards differ from more mass market prepaid products is that:

  • As with all credit products you need to be 18 to access them. If you aren't 18 you can still enjoy many of the benefits of prepaid credit cards, but you won't be able to start building your credit score until you are 18.
  • Different credit building prepaid credit cards have different mechanisms for achieving it, but they tend to hold your prepaid balance as a secured amount (effectively your credit limit). You then transact in a normal way, but purchases are considered to have been made using "credit", which the secured funds (preloaded money) clear at the end of every month. The transactions are reported back to UK credit reference agencies and your credit score improves as a result.

What Alternatives to Prepaid Credit Building Credit Cards are there?

It really depends what you want from a product, and your current credit status. If you think you have a bad credit score because you've missed a couple of payments you might still find that there are "Near Prime" or "Sub Prime" credit cards you'll be accepted for. If you're not too worried about the credit building element of prepaid cards then you might find that broadening your search to all prepaid credit cards will reveal products better suited to your needs (some even offering rewards points and additional benefits).Whatever you decide is right for you, it's essential you compare products to make sure you get the best products. Use our range of UK credit card comparison tables to get the best prepaid, and standard, credit card products.

Credit Score Related News
Clearing up confusion over credit reports, scores

Many consumers are confused about their credit reports. We've cleared up some commonly misunderstood areas ... Read More

How to issue a notice of disassociation

If you've ever shared finances with someone, you're financially associated. That relationship could negatively affect your credit, so here's how to get a "financial divorce" ... Read More