Use a Prepaid Credit Card
abroad if worried about potential fraud
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Last update : December 2011
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| Although they're known as PrePaid Credit Cards they don't offer any credit. They work by prepaying or loading money on to the Card and then using it as you would a Credit or Debit Card.
For example, before holiday you load the Card with £500 and spend on it until the balance is used up. You can then add more money should you choose to. This can be done via phone or the internet.
If the Card is lost, and assuming nobody knows the PIN the money is safe.
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| Watch the fees |
| Personally I don't like pre-paid cards as they're expensive with a long list of fees and charges including - |
- Signup fee - many charge £5 - £10
- Loading fee - Deposit money and it can cost up to 3%
- Transaction fees - Every time the Card is used expect to pay 1% - 3%, possibly more when abroad
- Exchange rate fees - The rate is normally competitive but that doesn't stop Exchange rate fees being charged, often 2% - 3%. See also How to get the best Exchange rate for your cash when travelling abroad
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| Summary |
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Prepaid Credit Cards are an expensive way to use plastic and even more so when on holiday.
Don't be too worried about fraud when abroad. If you use a Credit Card and money is stolen this will normally always be refunded. In fact using plastic when abroad is far safer than taking Cash.
For a more detailed explanation of Prepaid Cards and how to use them see this link.
See also
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How to Audit your Credit File
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With errors your rating will suffer
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How a clean credit rating can save you money
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4 steps to a clean up any mistakes |
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It's absolutely critical.....
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Read more in the Credit Cards section:
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