Creditbuilder from Cashplus
Cashplus Gold gets better with free Creditbuilder
Cashplus looks set to revolutionise prepaid cards in the UK, with the launch of its new optional credit builder service, which can actually improve your credit rating.
It’s the first prepaid card in the UK to offer the service, and it is likely to provide a lifeline for consumers trying to repair their credit history.
Over 100,000 consumers in the UK are already using the cashplus gold MasterCard, with the majority opting for the monthly fee version, which currently costs a fixed £4.95 per month. Prepaid cards are relatively new in the UK, and unlike a credit card, you pay your own money onto the card (for example, by loading it with cash at the post office), and then use it at retail locations or on the internet, wherever you see the MasterCard brandmark.
However, it’s not a credit card, as you are loading your own money onto the card, and the card issuer is lending no money. It’s much like a pay as you go phone, where you can only spend funds loaded into your account.
However, whilst you can only spend money that you have paid into your cashplus account, creditbuilder is an optional service that provides an alternative method of paying for your card, which enables your payment history and account details to be reported to credit reference agencies.
creditbuilder is an interest free loan of £59.40, which is then repaid with 12 monthly installments of £4.95, billed directly to your cashplus card. You sign a 12 month loan agreement with APS (who service the cashplus card) for £59.40, which then entitles you to use a cashplus MasterCard for 12 months. The loan can only be used for this purpose.
Then, so long as you have at least £4.95 in your cashplus account each month, the 12 loan repayments are collected automatically, and reported to Experian as successful repayments.
It’s important to make sure that sufficient funds are in your account each month, otherwise the payment would not be collected, and APS may report an unpaid repayment, potentially causing a negative impact to your credit history.
So, how do you apply for creditbuilder?
Firstly, you need to get a Cashplus MasterCard.
Once you receive your card, you can then download an application form from the Cashplus website and apply for creditbuilder.