Prepaid credit card: advantages & disadvantages of prepaid credit

The prepaid credit card is especially suitable for people who are not granted a traditional credit card. These often concern people who are no longer considered creditworthy by the bank, or people who cannot provide proof of income, such as the unemployed or students. You do not have to undergo a BKR assessment to get a prepaid credit card. You cannot incur debts with this prepaid credit card, because you only have access to a prepaid amount of money on your prepaid credit card. What are the advantages and disadvantages of the prepaid credit card? And can you pay abroad with your prepaid credit card?

Credit cards: practical

Credit cards have become indispensable in the modern world, where electronic transactions take place on an assembly line. Credit cards are extremely practical for making electronic payments, such as buying things on the Internet or paying the bill for a dinner. The credit card is especially useful if you do not have cash with you. With a credit card at hand, you don’t always have to worry about whether you have enough banknotes in your pocket. A credit card is also extremely useful for payments abroad.

What is a prepaid credit card?

The prepaid credit card is one of the most recent types of credit card, which is especially useful for people who can no longer obtain a regular credit card. These are people who, according to the banks, are no longer considered creditworthy. To apply for a prepaid credit card, the bank will not require proof of income and the applicant will not have to undergo a BKR assessment. The idea is that you pay a certain amount in advance that will be placed on your prepaid credit card. The prepaid credit card is therefore based on the same system as, for example, a prepaid telephone card.

Prepaid credit card: for whom?

If you apply for a traditional credit card at the bank, you will be asked a few questions. The most important question is whether you have a fixed income . The bank wants to be sure that you will be able to repay the money withdrawn. If you do not have a fixed income, it is very difficult to get a traditional credit card. That is why the prepaid credit card system was devised. The prepaid credit card can be applied for by people without a fixed income, such as the unemployed or students.

How does the prepaid credit card work?

The prepaid credit card is a credit card where you deposit a certain amount on your credit card in advance. With the prepaid credit card system you cannot incur debts ; After all, you have already deposited an amount on the card in advance. You can top up the prepaid credit card by depositing more money on it. Once your money has been deposited, you can fully enjoy all the benefits that the credit card brings. Examples of prepaid credit cards in the Netherlands are the DB Card, the Medius Prepaid Mastercard and the Exacard.

Advantages of prepaid credit card

No credit risk

With the prepaid credit card you have the advantage of having no credit risk. Because you pay your credit in advance, you cannot incur debts. That is a big advantage for people who have had problems with effective management of their budget in the past. For example, they have incurred too many debts and can no longer get a loan or credit card from the bank because they are registered with the BKR.


This follows the main advantage of the prepaid credit card. To get a prepaid credit card, you do not have to provide proof of income and you do not have to undergo a BKR assessment . The bank will therefore not impose the usual strict requirements on your application, such as submitting proof of income.

Smooth payments

The prepaid credit card also has the advantages associated with the classic credit card, such as smooth electronic payments via the internet and paying with the credit card in shops, hotels and restaurants all over the world. You can also withdraw money from ATMs anywhere in the world. Paying abroad with a prepaid credit card is therefore no problem.

No monthly fees

With traditional credit cards, you usually pay extra monthly or bimonthly costs for having a credit card. This is not the case with the prepaid credit card, where you only pay a one-off cost to activate the prepaid credit card.

Disadvantages of prepaid credit card

Limited credit

A disadvantage of the prepaid credit card could be that you only receive credit on the money that you have deposited on the credit card in advance. If you make a payment that is more expensive than the remaining balance, your card will be declined. The credit you have is therefore completely dependent on the amount deposited.

DB Card: the first Dutch prepaid mastercard

There was an important player active on the Dutch prepaid credit card market for a while: the DB Card from DB Cardservice BV. The DB Card was issued under license from MasterCard International and had all the typical features of the prepaid credit card. However, in 2017 it was decided to stop issuing the DB prepaid card.

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