Many consumers are confused about their credit reports. We've cleared up some commonly misunderstood areas ... Read More
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.
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:
Where prepaid credit builder cards differ from more mass market prepaid products is that:
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.