How do student prepaid credit cards work?
Posted on July 15th, 2011A student prepaid credit card works in much the same way as pay as you go mobile phones – you have to top them up with credit before you can use them. This is useful if your child is not particularly good at managing your money, as you can only spend as much as you have loaded on the card and cannot become overdrawn or go over the limit. These types of cards are usually best suited for young people over age 15.
Advantages of prepaid credit cards include:
- No interest to pay like on a normal credit card
- No late payment fees
- They have the convenience of a credit card, such as using it to pay for goods online or abroad
A prepaid credit card can help you to keep kids’ spending in check by not allowing them to go over the limit or run up huge credit card bills and interest. Teaching them to spend within their means may help them have good credit in the future.
| Card | Description | Interest Rate (p.a) | Balance Transfer (p.a) | Annual Fee | Interest Free Days (up to) | Info |
|---|---|---|---|---|---|---|
 |
Capital One Classic |
34.9% | n/a | n/a | up to 56 days |  More Info |
| Representative Example: 34.9% APR on representative variable; 34.94% p.a. variable on all purchases; assumed credit limit £1,200 | ||||||
 |
Rise Visa |
n/a | n/a | n/a | n/a | More Info |
| Representative Example:If you spent £300 on a purchase transaction at the start of your agreement, incurred monthly charges over 12 months of £330 and made repayments by 12 equal instalments, your APR would be 303% representative (variable). | ||||||
 |
American Express Platinum Card |
n/a | n/a | £300 | n/a | More Info |
| no APR representative variable or p.a. variable on all purchases, pay your balance in full every month | ||||||
 |
Vanquis Visa Cherry Card |
39.9% | n/a | n/a | 0% for 56 days | More Info |
| Representative Example: Purchase annual interest rate 39.94% (variable), Amount of credit £1000; Representative 39.9% APR (variable) | ||||||
 |
Express Rewards Credit Card |
17.9% | n/a | n/a | 0%p.a. for 6 months | More Info |
| Representative Example: 17.9% APR | ||||||
 |
Virgin Money |
16.8% | 0% for 20 months | n/a | 0% for 3 months | More Info |
| Representative example: 16.8% APR on representative variable; 16.8% p.a. variable on all purchases; assumed credit limit £1,200 | ||||||
 |
Aqua |
35.9% | n/a | n/a | n/a | More Info |
| Representative example: Your interest rate for purchases is 35.95% p.a with a representative 35.9% APR if you borrowed £1,200 and repaid it over 12 months. | ||||||
 |
Capital One World MasterCard |
19.9% | n/a | n/a | Maximum of 45 days for purchases where the balance is paid in full every month | More Info |
| 19.9% APR on representative variable; 19.94% p.a. variable on all purchases; assumed credit limit £1,200 | ||||||
 |
Bank of Scotland Advantage Card |
17.9% APR | 0% for the first 13 months on balance transfers - 3% fee | n/a | 0% for the first 13 months on purchases | More Info |
| Purchase Rate: 17.95% p.a.(variable); Representative APR: 17.9% APR(variable); Based on borrowing: £1,200 repaid over 12 months | ||||||
 |
British Airways American Express |
19.9% | n/a | n/a | n/a | More Info |
| Representative Example: 19.9% APR representative variable; 19.9% p.a. variable on all purchases; minimum limit £700, maximum limit subject to status | ||||||
 |
American Express Platinum Cash Back Credit Card |
18.5% | n/a | £25 | 0%p.a. for 6 months | More Info |
| Representative example: Representative 18.5% APR. Based on £25 annual fee, assumed borrowing of £1,200, rate of interest 14.0% per annum (variable). | ||||||
 |
Bank of Scotland All in One |
17.9% | 0% for 12 months - 3% fee | n/a | 0% for 12 months | More Info |
| Representative 17.9% APR (variable) Purchase rate 17.95% pa (variable) With an example credit limit of £1,200 | ||||||
 |
Vanquis Visa Lime Card |
39.9% | n/a | n/a | 0% for 56 days | More Info |
| Representative Example: Purchase annual interest rate 39.94% (variable), Amount of credit £1000; Representative 39.9% APR (variable) | ||||||