Standard everyday prepaid cards don’t help to build your credit history, but they can be a super convenience for a lot of people. People just arriving in the UK, or those who can’t get a regular bank account, love these cards because they are convenient for online and everyday shopping. Plus, many people can arrange to be paid by employers putting money directly onto the card.

They are also a great way to give teens an allowance in a way that allows them to make purchases online without having access to credit. And, with PIN functionality, there is much more security than with carrying cash, which makes them great for travelling.

There are, however, some prepaid cards that help you build, rebuild, or improve credit, such as the Cashplus card. With these cards, you can be lent a year’s worth of monthly fees in advance, which you pay back in monthly installments. Your payment history is then forwarded to credit rating agencies. If you do this as well as keep up on all your monthly payments (such as rent, phone, etc.) you will improve your credit rating.

Whether they build credit or not, prepaid cards have many benefits and are very useful for managing money, whether you have no bank account, or whether you simply want another convenient way to pay for purchases without risking overspending.