I've been looking at pre-paid mastercards that offer to boost your credit rating. They do this by "lending" you up front the total monthly fee for a year. You then ensure you regularly pay this back thus boosting your credit rating. I'd like the opinion of an IP on here, as to whether this constitutes a credit loan (not allowed under an IVA) and whether it really makes a difference to you credit rating while an IVA is listed against you.
I will be interested on the IPs views too as I am unsure about the "fees" but as prepaid cards use the funds you put onto them in the first place they are not based on credit like normal cards, this is why IPs allow them in IVAs if you need the ability to use a card.
The credit agencies my have more info on the real impact on your credit rating by using them.
Lets watch this space...
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It is only a few that can help the credit rating - as you get a loan from them which cover a years worth of fees (£60- £80 per year) It the the loan that is reported NOT the card. However as said before these cards dont have the same cover if the card issuer goes "bust" - as any credit on them is likely to be lost , and some places just wont accept them.
Personally, I wouldn't touch them. I'd not bother with a credit card but if I did I'd go for something like Vanquis which will build up my rating and I'll be covered if something does happen.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by essexlady
I've been looking at pre-paid mastercards that offer to boost your credit rating. They do this by "lending" you up front the total monthly fee for a year. You then ensure you regularly pay this back thus boosting your credit rating. I'd like the opinion of an IP on here, as to whether this constitutes a credit loan (not allowed under an IVA) and whether it really makes a difference to you credit rating while an IVA is listed against you.
I got a prepay card about 5 months back as my basic bank account only gave me a cash card. It's a very handy bit of kit.
I know the credit builder add on your on about and having just finished my IVA I opted in for it as it costs you nothing. I would add that it will be pointless doing it while in your IVA as all your accounts will be in Worse Case Status. Hold off til your finished with your IVA, in the mean time a prepay card can be handy if your basic account does not have a debit card.
Thanks for all your comments. I'm thinking of getting one because my Co-op Cashminder card has been refused more than once although the funds have been in the account. I'm hoping with a pre-paid card this won't / shouldn't happen. I can't apply to Vanquis as that is a credit card which you can't have in an IVA.
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by essexlady
I've been looking at pre-paid mastercards that offer to boost your credit rating. They do this by "lending" you up front the total monthly fee for a year. You then ensure you regularly pay this back thus boosting your credit rating. I'd like the opinion of an IP on here, as to whether this constitutes a credit loan (not allowed under an IVA) and whether it really makes a difference to you credit rating while an IVA is listed against you.
I got a prepay card about 5 months back as my basic bank account only gave me a cash card. It's a very handy bit of kit.
I know the credit builder add on your on about and having just finished my IVA I opted in for it as it costs you nothing. I would add that it will be pointless doing it while in your IVA as all your accounts will be in Worse Case Status. Hold off til your finished with your IVA, in the mean time a prepay card can be handy if your basic account does not have a debit card.
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Prepaid cards are exactly what they say - you pay the money and you cannot go overdrawn.
Don't know whether they get accepted everywhere though.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Mine is as good as any master card, it is a master card just a prepay. Have even used it in Ireland !! can even use it as a bank account and set up direct debits from it. It's linked to my Paypal as well.
I have the Cash Plus PrePay Gold
Last edited by Stevebuk on Wed Feb 01, 2012 9:35 pm, edited 1 time in total.
I have a Paypal card as well - never used it as I have a full debit card with my bank account.
I think it may depend on when where you want to use it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I had the cashplus gold prepay card for a while, it was very useful.
Once the co-op started issuing a visa card with the cashminder account i let the cashplus card lapse.
Aucto Splendore Resurgo.
IVA accepted May 2007.
Extended by 12 months in lieu of equity March 2012.
F+F offer accepted May 2012.
C of C received August 2012.
IVA dropped off credit file 24th May 2013.
I have a debit card with my Nationwide basic Cashminder account and have no problems with using it anywhere in the UK or on the internet.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by Stevebuk
Mine is as good as any master card, it is a master card just a prepay. Have even used it in Ireland !! can even use it as a bank account and set up direct debits from it. It's linked to my Paypal as well.
I have the Cash Plus PrePay Gold
