Types of Bank Cards

  1. Debit Card:
    • Withdraws money directly from your current account.
    • Minimum age: 11 years old.
  2. Prepaid Card:
    • Loaded with money by a parent or guardian.
    • Minimum age: 6 years old.
  3. Credit Card:
    • Allows you to borrow money from the bank to make purchases.
    • Minimum age: 18 years old.

Important Considerations

Payment cards include prepaid, debit and credit cards. These are all ways to make purchases in shops and online, but not everyone can use them. For example, you need to be under 18 to have your own credit card. People over the age of 11 can use debit cards, and younger people can use prepaid cards after the age of 6. Prepaid cards are a simple and easy way to manage your money, and are a useful alternative to carrying cash. You can add money to the card online, via your bank, or  with cash. This also allows parents to add money to the card for a young person to use. 

When issuing a credit card, banks perform checks and set a credit limit. For example, someone might not be able to spend more than £5,000 in one month. Once approved, any purchases made on the credit card are added to a monthly statement that must be paid in full by a specified date. Failing to pay the full balance results in interest charges (extra money on top of the amount borrowed). The more you pay back each month, the lower the interest and the quicker you can clear the debt. Paying off the balance immediately avoids interest altogether.

Borrowing money is a personal choice that depends on individual circumstances. For some, it may not fit their values. In Islam, for example, riba – any fees or interest charges when lending money – is forbidden. Because of this, money must be managed without interest-based borrowing.