May 14, 2006

By Peter Kenny

For many people a credit card is not always available due to their credit worthiness. It may be there was credit problems in the past or a lack of any credit history at all which may contribute to them being unable to be accepted for a credit card.

Just this week the Shadow Chancellor, George Osborne, warned of a “credit card Britain” and mentioned how most of us can use our and can still pay our mortgage, however, there are some unfortunate people who are unable to do so and therefore get themselves further into debt. Used properly a prepaid card can help rebuild a poor credit rating. 

This new prepaid card comes from a company called 360 Money, who were the company behind the Original Splash Plastic card, the first youth oriented prepaid card.

The 360 Money card is designed to stop people spending more than they can afford and thus going into the red. By only being able to spend what is in the prepaid card account, there is no way it can be overdrawn and therefore no risk of debt or interest charges. The card can be used in all retail outlets where Maestro and Solo cards are accepted.

Card funds can easily be topped up with cash at 15,000 PayPoint shops and 14,500 Post Office™ branches nationwide or with a credit or debit card by visiting the 360 Money website.

There are two types of prepaid card available, 360 Premium for people who are over 18 and 360 Splash for under 18’s

The downside is the fees that are charged. Membership fees can cost up to £1.99 each month, transaction fees for internet use (2.5%), ATM cash withdrawal fees and reactivation fees if membership payment is missed. A prepaid card should only be used if you are vulnerable to falling into debt, as the fees can sometimes be substantial. The prepaid card for under 18’s can also be useful for parents who wish to control their child’s spending.

Click here for more details on 360 Money