All About Prepaid Cards

What is a prepaid card?

A prepaid card is a physical card that you load money onto, enabling you to spend online and in-store. For some, it could be a suitable alternative or addition to a debit or credit card.

How do prepaid cards work?

1. Load money onto your prepaid card. How you can do this will vary depending on the card provider; however, typically, you can add money on your provider’s website or app, manually through a bank or post office, or by bank transfer.


2. Please note that the time it takes for the money to become available on your card will depend on the method you’ve used to load the funds, as well as your card’s policies and procedures.


3. Once the money has cleared, you can use your card to withdraw money from a cash machine or spend online and in-store. Generally, you should be able to use your card anywhere that accepts debit or credit card payments.


4. With a prepaid card, you can only spend the money available, which could prevent overspending.

Who might a prepaid card be suitable for?

A prepaid card could be a suitable option if you’ve been unable to get a debit or credit card due to limited credit history.

Prepaid cards are also popular with those travelling abroad. Prepaid travel cards are available from a range of providers and major travel agencies and typically allow you to load your card with one or more currencies.

Finally, a prepaid card could help you budget, as you can only spend the money that’s available on the card.

Different types of prepaid cards

If you’re heading overseas and pondering your spending options, you might be interested in browsing our Travel Credit Cards guide.

Things to think about before applying for a prepaid card

• Some prepaid cards come with fees, such as annual, initial activation, and cash withdrawal fees. Be sure to check the terms and conditions of your chosen prepaid card before you apply.
• There could be a cap on how much money you add to your prepaid card in a certain timescale, for example, weekly or monthly limits could apply.
• While many retailers accept prepaid cards as a payment method, there’s a chance that some may not, so it’s a good idea to have a backup payment plan to hand.
• You should never spend money if you don’t need to or can’t afford to.
• Prepaid cards do not come with a bank account; the money simply sits on the card, ready for when you need to use it. However, depending on the provider, you could ask that your wages or any benefit payments be added to your prepaid card.
• Money stored on prepaid cards is not protected by the Financial Services Compensation Scheme (FSCS). If the card provider were to go into administration, your funds will not be protected, although providers must hold your money in a bank account, so you should get it back.

Will a prepaid card affect my credit score?

You will not usually need to undergo a credit check to be considered for a prepaid card. The payments you make using your prepaid card will not be reported to the credit reference agencies; therefore, using one won’t affect your credit score.

What to do if you lose your prepaid credit card

If you lose your prepaid card, it’s important to let your card provider know as soon as possible so they can take steps to block your card and protect your money.

Which is the best prepaid card to get?

The best prepaid card for you will depend on your financial circumstances.
You should shop around and do your research before you decide to apply for a prepaid card. You can use comparison sites to compare different prepaid cards and find one that best suits your needs.
Factors to bear in mind when searching for a suitable prepaid card include any applicable fees and whether there’s a limit on the amount of money you’re able to add to the card.

Can I get a virtual prepaid card?

Yes - some providers could offer a virtual prepaid card, although it’s important to be aware that not all providers will offer this choice and may supply physical prepaid cards only.

Prepaid card vs. debit card vs. credit card

In the table below, we’ve outlined some key features of prepaid, debit, and credit cards.

Do thimbl offer a prepaid card?

thimbl does not offer a prepaid card; however, if you have a history of poor credit, you could be considered for the thimbl Credit Builder Credit Card.
Unlike a prepaid card, the thimbl credit card could help you build your credit score.

How does the thimbl Credit Builder Credit Card work?

1. If approved, you could gain access to your thimbl credit card the same day.* Your physical card will arrive in the post within 5-7 working days.
2. Use your thimbl credit card to make a necessary and affordable purchase.
3. Make at least the minimum repayment amount on your credit card each month. Where possible, you should try to make more than the minimum amount, and if you clear your balance in full every month, you will not be charged interest on your borrowing.
4. Your spending and repayment activity will be reported to the credit reference agencies (CRAs). Over time, you could notice an improvement in your credit score, provided that any other credit commitments have also been kept on top of.

You can check your eligibility for a thimbl Credit Builder Credit Card if you:

• Are between the ages of 18 and 70;
• Are a UK resident with at least 1 year's UK address history;
• Have a monthly net income of at least £800;
• Have an active credit account that has been open for a minimum of 12 months; and 
• Do not already hold a Zable credit card.

Lendable Ltd is unable to consider applications from anyone who has declared bankruptcy or is in an Individual Voluntary Arrangement (IVA).

Find out if you’ll be accepted before you apply for your thimbl. Credit Card

• For all credit levels, from poor to excellent
• Checking won’t affect your credit rating
• 48.9% APR Representative (variable)

Check my eligibility

Struggling with money?

If you’re dealing with money worries or are concerned about debt, please know that you can access free, confidential advice through a range of charities and organisations, including StepChange, MoneyHelper, Citizens Advice, and National Debtline.

*Please be aware that use of the virtual thimbl credit card will depend on the outcome of a further fraud check, carried out by Zable. This will involve an Open Banking check.

The thimbl credit card is powered by Zable. Zable is a trading style of Lendable Ltd. If you choose to make a full application, a creditworthiness assessment will be carried out by Zable. This will consist of a hard search and a further check powered by Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could have a negative impact on your credit score. Any credit obtained upon successful application will be provided by Lendable Ltd.