Prepaid cards

Prepaid cards work like credit/debit cards, except you can't run up a debt. You can only spend the amount of money you've credited to your card. Prepaid cards aren't linked to bank accounts, and, as they're backed by major card schemes (MasterCard/Visa/Maestro), the cards can usually be used in shops to make purchases, at cash points to withdraw money, and they can even be used abroad.

There are a number of ways to credit your card: in person at a bank, online, at the post office, or wherever you see the PayPoint symbol. It can even be used as an 'account' where your wages or any income you receive can be credited onto your card by someone else.

The advantages of having a prepaid card are that it works well for people who may have a poor credit history and/or be unable to get a bank account (as no credit check is carried out). Also, a prepaid card is a good budgeting tool for people who want to limit their credit card bills or don't want to get into debt.

One thing to bear in mind with a prepaid card is the fees that are charged. We've researched a few of the prepaid card issuers so that you can compare these charges before deciding which card works best for you.