If your teenager insists on having a credit card, what options are out there for you to explore? If your child is under 18 years of age, you can choose from a variety of prepaid credit cards on the UK banking market. The Splash Plastic Prepaid Card is one option to look into. The application fee is £5.00, and there is an annual maintenance fee of £4.95. No monthly management fee applies. Online statements and internet balance enquiries are free-of-charge. This type of card is not a debit card, meaning that it is not linked to a bank account. It is not a credit card that goes with a line of credit, and your child cannot go overdrawn. They can only spend what has been preloaded onto it.
Another prepaid card you may want to consider for your teenager is the Virgin Pay As You Go Card. It can be used just like a regular card, but there is not credit facility. You do not need a bank account, and no credit check is required to apply for this card. The Virgin Pay As You Go Card offers plenty of benefits, one being that budgeting is made easy. It is a secure and convenient way to shop in stores, by phone, and online. Moreover, cardholders enjoy discounts when shopping at Virgin companies. Cardholders can also choose between ‘Pay monthly’ and ‘Pay as you go’ tariffs. This card is offered with a card transaction fee of 2.95 percent under the pay as you go plan, and card transactions are free-of-charge with the pay monthly plan. Cash withdrawals are charged at 2.95 percent in the UK under the first plan and are free-of-charge under the second. The percentages for cash transactions overseas are 3.5 and 2.95, respectively. It is easy to apply for the card using an online application. The card fee is £9.95 and can be paid online as well. You have to be 18 years of age (being a parent of a teenager, you are) and a resident of the United Kingdom. Confirm your age and then choose one of the payment plans.
One type of card which is run internationally is the Maestro card. It is easy to apply for the card, and it can be either linked to a current account or be prepaid. Similar to other prepaid cards, the Maestro has a number, a signature strip, and the company branding.
In general, prepaid cards on the market are top up cards used for the purpose of easy payments. These cards are similar to standard credit cards except that the cardholder cannot spend beyond a certain limit. This means that your child can charge purchases up to a limit, which has been predetermined. This amount of money has been topped onto the credit card previously, and no interest rate charges apply. This is a good opportunity to teach children how to control money, given that they can spend only the amount that has been preloaded on the credit card.