The debate has long been ranging in the UK about whether or not prepaid cards for teens are a good idea. Estimates attribute as much as 31% of all online spending to teenagers typically using a friend or relative’s credit card. Up until recently it has been difficult for teenagers to manage their finances or make purchases online because they did not have access to credit cards. The majority of companies deny them access because they are simply too young and have no established credit record. However, some companies have reduced the restrictions on their prepaid debit cards in order to allow them to be issued to teenagers.  

Prepaid cards are a safe way to help teach children about managing money and help them learn how to use a credit card. It is ideal for controlling the spending amount of teens and card statements give a full breakdown of children’s spending habits. There is no chance of running into debt since spending is limited by the amount of money put on the card. Prepaid cards don’t require any credit checks, so they are much easier to get than a regular credit card. For young people, carrying a prepaid card can add an additional level of safety so that they don’t have to carry around large amounts of cash with them. It will also allow them to shop online or over the phone. If the card is used fraudulently in this way, the money can be recovered.  

As with any credit card, shopping around until you find the right one for you is important. Here are some things to consider: 

The following is a list of credit cards available to people with a poor credit rating: