Virgin Cards: make more of your money

A prepaid card can be a great alternative for people who don’t want a credit card, but like the convenience of using a card instead of carrying cash.

Unlike a credit card where you effectively go into debt every time you spend on the card, with a prepaid card it works the other way round. You load up your card with money first, then go out and spend on it until your balance runs down, then you top it up again.

You can use a prepaid card to pay for things in shops, online and over the phone. It’s also easy to get one. The minimum age to take out a prepaid card is usually 18, but many providers will let you have a card from 13 with permission from your parents.

Against this, there are a range of fees that may apply every time you use the card.

There are lots of advantages to using a prepaid card. Here are the main reasons you might want one, and the important things to watch out for:

Everyone’s accepted
If you haven’t got a bank account or you’ve been turned down for credit cards, a prepaid card is a great alternative. Anyone can have a prepaid card whatever their salary or personal circumstances, and just like other cards you can use them to shop online and over the phone.

The minimum age to take out a prepaid card is usually 18, but many providers will let you have a card from 13 with permission from your parents.

It’s safer than carrying cash
If you lose your cash it’s gone forever, but a prepaid card offers more protection. Just like a credit card you’ll be given a PIN number to use with your card, and most card providers will protect you against fraudulent use of your card. If you call your card provider as soon as you notice your card is lost or stolen, your money should be safe.

It can help you budget
Because you need to load a prepaid card with cash before you can use it, there’s no way you can go over budget or get into debt. Unlike a credit card, or a debit card linked to a bank account with an overdraft, you’re not borrowing any money.

All your family can have one It can be a great way to give your kids their pocket money, and keep track of what they spend it on! Simply add them to your account as additional cardholders and they’ll get their own cards.

You can send money abroad
If you’ve got a family member who lives in another country or is travelling abroad, you can use your prepaid card to send them money. Simply add them to your account as an additional cardholders and they’ll get their own card. Then, when you load money onto your card in the UK, they’ll be able to spend it abroad.

You can use it on holiday
Although you can use most prepaid cards abroad, some are specially designed for travelling and offer great perks. They’re available in a range of currencies and mean you don’t have to worry about using your credit or debit card abroad, carrying large amounts of cash, or exchanging Travellers Cheques.

Some things to consider

• Prepaid cards sometimes charge fees when you use them, so decide how you’re most likely to use your card then pick a card with the lowest fees for your needs. For example, if you mainly want to use your card while you’re on holiday, choose one with the lowest charges for spending abroad.
• Most prepaid cards have limits on the amount of money you can load onto them and spend. Make sure you check these out so you can use your card for what you need.

Anyone can apply for a prepaid card – you don’t need to have a bank account and there’s no credit check. The card provider may need to check your identity, but that’s it. Simply fill out an application form and buy your prepaid card.

The minimum age to take out a prepaid card is usually 18, but many providers will let you have a card from 13 with permission from your parents.

Once you've got a prepaid card simply load it with cash, then you can start shopping online, over the phone and in shops.

There are lots of different ways to top up your card:

• By debit card
• By credit card
• By bank transfer
• By SMS
• At a PayPoint
• At the Post office