Will Cashplus Credit builder really improve my credit rating?
Improve your credit rating with Credit builder
“Do prepaid cards improve my credit rating?” – This is the most common question that we receive for customers searching for a prepaid card.
Up until now, our response has always been an unfortunate “NO!”
Prepaid cards are loaded with your own funds, and no money is actually being borrowed from the bank. Therefore, unlike a credit card, loan or overdraft agreement, no information is exchanged with credit bureaus such as Experian or Equifax.
However, things are set to change with Creditbuilder from cashplus!
Cashplus, the UK’s first and leading prepaid MasterCard has launched Credit Builder, which is a free “add-on” to their cashplus Gold MasterCard.
But, how does it work? How can creditbuilder improve your credit score if you are not borrowing any money? Or, are you....?
Well, its actually rather clever!
Cashplus offer two products. A flexi product for less frequent users, where you pay a fee each time you use the card, or a monthly fee version, designed for normal – high card users.
This product comes with a £4.95 fee that is billed monthly, but purchase transactions and fund reloads are free of charge, so all you pay is a fixed £4.95 each month.
Now, with creditbuilder, you agree to have the card for 12 months. You sign a 12 month loan agreement for a total of £59.40 (12 x £4.95 = £59.40) and Advanced Payment Solutions (who operate and service the card) loan you the money to pay for the Cashplus card for 12 months. The loan can ONLY be used to pay for the Cashplus card, and can't be used for any other purpose.
You then just need to ensure that you have at least £4.95 in your account each month, and the £4.95 monthly fee is taken as normal and credited to your loan account with APS. These payments are reported to Experian each month.
You can get your Cashplus card here >> Once you receive your card you can visit the Cashplus website and sign-up for creditbuilder.