Could you benefit from a pre-paid credit card?
Not everyone in the UK is able to get finance such as credit cards, and this is because many people have fallen into financial trouble and this has resulted in a poor credit score and history, which often means that getting any sort of unsecured credit is pretty much impossible in some cases. However, it is not just credit that can be difficult to obtain when you have a poor credit history and low credit rating. In some cases you may also find it very difficult to open a bank account, and without benefits such as a cheque book or debit card facility life can be very difficult.
However, it seems that for consumers in the UK there may be a solution on the way. Plastic has become a popular way to shop, with consumers using debit and credit cards to make purchases on the high street, by phone, and via the Internet. And following in the footsteps of the United States, the UK is set to trial a pre-paid credit card that could provide an effective solution for those unable to get credit card or debit card facilities but wishing to enjoy the convenience and ease of spending on a card.
The new pre-paid credit card, which is set to go on trial in Liverpool, is known as the Bread Card, and works in the same way as a pre-paid mobile phone. The cardholder has to load the card with cash, and can then use the card to spend the amount of cash that has been loaded on to it. This means that the consumers cannot spend more than they actually have, which means that they cannot get themselves into any more debt.
According to one person involved in the implementation of the scheme: "This card will give people the chance to rebuild their credit rating, which is great for those who get into a bit of a mess during their teens and early 20s. With such a big focus on Liverpool as the Capital Of Culture, Bread thought the card would be perfect to launch in a city which seems to be growing more rapidly than any other in the UK."
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