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"Prepaid credit cards offered by mobile phone giant"

By admin | September 4th, 2009 | Credit Cards

A leading mobile phone giant has decided to join the prepaid credit card market by launching two new prepaid credit cards for the UK market.

The new prepaid cards are being offered through Phones4U, and the cards are designed to cater for different groups of users. The first card is the Escape MasterCard Prepaid Card, which can be used by ethnic minorities that tend to regularly move money to loved ones abroad.

The second prepaid card is designed for younger people aged between thirteen and eighteen years, and is the Neon MasterCard Prepaid Card.

Officials have said that with regards to the Neon prepaid card there is no need for concern over the fact that it is designed for children.

Officials have said that some people might have been concerned about a card that catered for children as young as thirteen, but because the card is a prepaid one there is no risk of the child getting into debt or running up huge bills, as in most cases it will be funded by the parents for a nominal amount of cash and could help to teach the child more about managing finances responsibly.

There are also restrictions with regards to what the card can be used for, and users will not be able to use it to buy alcohol, tobacco, or gamble.

A similar card was launched by the mobile communications giant O2 recently, which was a fee free card. However, the Phones4U cards do come with a charge.

The total cost of each card will be £19.99, and this will include £10 worth of credit on the card. One finance industry official commented on the cards, stating: “On the whole these Phones 4U cards aren’t too bad. People need to decide how they will use them and find one that charges the lowest fees for that usage.”

Tags: Credit Cards, prepaid credit cards

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