118 118 Money Credit Card review 2020

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Looking for a card with no nasty surprises? 118 118 Money's Mastercard charges zero fees and gives you a guaranteed credit limit.

Best known for the moustachioed chaps in short shorts at the centre of relentless TV advertising campaigns, 118 118 Money is now a fully-fledged financial services provider. It’s started to make a name for itself serving the non-standard (bad credit) market with personal loans and now this fee-free credit card.

Finder rating: ★★★★★

Representative example: When you spend £1,200 at a purchase rate of 34% (variable) p.a., your representative rate is 34% APR (variable).

0%

Balance transfer fee

34%

Representative APR

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Foreign transaction charge

£0

Account fee

Details

Issuer118 118 Money
NetworkMastercard
Annual/monthly fees£0
Balance transfers34%
Balance transfer fee0%
Purchases34%
Purchases interest-free periodUp to 51 days
Money transfers34%
Cash advances34%
Min. credit limit£500
Max credit limitNot specified
Additional cards available3

Expert review

Chris Lilly

Review by


Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.

Expert review

For most people, credit card rates and fees are an absolute minefield. Your average card issuer charges different interest rates for different types of transaction and dozens of different fees. 118 118 Money’s answer is a card with one simple rate and no fees.

This means that as well as using your card to pay for purchases, you can use it to withdraw cash at cash machines or to transfer money to another account – basically a loan. Yes, some other cards let you do that, but they’ll almost always charge a fee and also apply a different (higher) interest rate to those transactions. Not so 118 118 Money. Plus, provided you clear your balance in full at the end of the month, your purchases, withdrawals and transfers will be interest-free. If you tend to find yourself in overdraft towards the end of the month, or even if you use payday loans, then used correctly, this card could help you make big savings.

You can also use the card abroad without getting hit with non-sterling transactions, and once again, you’ll pay your normal rate of interest. Being a Mastercard, the card will be accepted pretty much anywhere that takes card payments. Bear in mind that if you’re on holiday abroad and a restaurant offers to bill you in sterling rather than in the local currency, for example, you should say no – otherwise it’ll be the merchant’s bank’s currency conversion fee structure that’ll apply, and not 118 118 Money’s.

Despite an APR that’s a little on the high side, if you can manage to pay off your balance each month, you could end up never paying any interest or fees.

So what’s the catch? Well there isn’t really a catch as such. Just that, like any credit card, you can fall into a trap of long-term debt if you only make the minimum required payment each month. You’ve also got to get approved for the card in the first place, obviously, but the good news is the card is designed with people who don’t have excellent credit ratings in mind. Finally, keep in mind that you may still be charged fees by third parties – like ATM fees from a cash machine provider (thankfully these are getting rarer).

How does this card compare with other credit builders?

118 118 Money’s card

Updated January 21st, 2020
Name Product Annual/monthly fees Min. credit limit Max credit limit Minimum income Rep. APR Incentive Representative example
118 118 Money Guaranteed Rate Card
£0
£500
Not specified
£8400
34%
Representative example: When you spend £1,200 at a purchase rate of 34% (variable) p.a., your representative rate is 34% APR (variable).

Compare up to 4 providers

Other credit builder credit cards

Table: sorted by representative APR, promoted deals first

“Credit builder” cards are designed as a stepping stone to cards with better rates. With no fees, the 118 118 Money card could suit those with a less-than-perfect credit history looking to rebuild their credit score.

Updated January 21st, 2020
Name Product Annual/monthly fees Min. credit limit Max credit limit Minimum income Rep. APR Incentive Representative example
Vanquis Bank Chrome Credit Card 24.7pc Visa
£0
£250
Subject to status: £1,000
Not specified
24.7%
Stay in control of your account with online servicing, a mobile app, SMS and email alerts.
Representative example: When you spend £1,000 at a purchase rate of 24.7% (variable) p.a., your representative rate is 24.7% APR (variable).
Tandem Bank Journey Credit Card Mastercard
£0
£500
Subject to status: £1,500
£15000
24.9%
No fees for making purchases or withdrawing cash abroad – currencies are converted at the standard Mastercard exchange rate.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Vanquis Bank Chrome Card 29.3pc Visa
£0
£250
Subject to status: £1,000
Not specified
29.3%
Representative example: When you spend £1,000 at a purchase rate of 29.3% (variable) p.a., your representative rate is 29.3% APR (variable).
Vanquis Bank Aquis Visa
£0
£250
Subject to status: £1,000
Not specified
29.8%
You could get a credit limit increase after your 5th statement and further increases every 5 months, up to £4,000.
Representative example: When you spend £1,000 at a purchase rate of 29.84% (variable) p.a., your representative rate is 29.8% APR (variable).
Vanquis Bank Visa
£0
£150
Subject to status: £1,000
Not specified
39.9%
Representative example: When you spend £1,000 at a purchase rate of 39.94% (variable) p.a., your representative rate is 39.9% APR (variable).
TSB Classic Mastercard
£0
£500
Not specified
Not specified
26.9%
Representative example: When you spend £1,200 at a purchase rate of 26.95% (variable) p.a., your representative rate is 26.9% APR (variable).

Compare up to 4 providers

Approval for any credit card will depend on your status. The APR shown represents the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.

Repayment options

When it comes to repayments, you can make manual repayments online or over the phone, or alternatively set up a direct debit. A direct debit is a great idea because it protects you from forgetting to make a repayment and damaging your credit score. You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.

Choose from the following direct debit options for your monthly repayments:

Minimum amount Fixed amount Fixed percentage Full amount

How to apply for the 118 118 credit card

It’s quick and easy to apply at 118 118 Money site. Firstly you’ll be prompted to check your eligibility – this is a smart way to find out if it’s worth applying without affecting your credit score. If you get the green light a decide to apply, 118 118 Money will then run a credit check which has a small (and usually short-lived) negative effect on your credit score – this is standard stuff.

Once your application has been approved, your PIN and card arrive separately in the post within 9-10 days. The first time you use your card at a merchant you’ll need to enter your PIN, and from then on you can go contactless for transactions of up to £30.

Frequently asked questions

What will my credit limit be?

This will depend on your credit history and financial situation. The guaranteed minimum credit limit on the 118 118 Money card is £500. The maximum isn’t specified./div>

What is a “credit builder” card?

A credit builder credit card is aimed at customers with limited or poor credit histories, but who are looking to improve their credit score in order to be eligible for other financial products. By showing the provider that you can responsibly handle a credit card account, you’ll make yourself more likely to be approved for other credit products in future.

What is my interest-free period?

Your interest-free period is the amount of time you have to pay off your purchases and cash advances before you are charged interest. With the 118 118 Money card, you’ll have up to 51 days interest-free on cash and purchases, as well as any balance and money transfers.

How does “guaranteed zero fees” work?

118 118 Money promises to not charge any fees based on how you use your card. This includes cash withdrawals, foreign transactions, balance transfers, late payments and overlimits (going over your agreed credit limit). However, you may still be charged third party fees, such as ATM usage fees, and will naturally need to pay interest on any purchases or transactions you make that you don’t pay off before your payment due date.

So I can make all the late repayments I like?

No. A small fee is just one of the consequences of being late with a credit card repayment.

Firstly, a late repayment basically means you’re borrowing for longer, so 118 118 Money will charge you additional interest. Secondly, any late repayments will be reported back to credit reference agencies, so the next time you apply to borrow money (perhaps car finance, a personal loan, a mortgage etc.) you’ll be very likely to be offered a higher rate because of your tarnished track record.

Is there a monthly account fee?

No. 118 118 Money relaunched its credit card in 2019, ditching the monthly account fee for new customers.

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4 Comments

  1. Default Gravatar
    Nigel
    November 19, 2019

    I asked you for credit card.

    • Avatarfinder Customer Care
      nikkiangco
      November 21, 2019

      Hi Nigel,

      Thanks for your comment. I hope you are well.

      It looks like you applied for a credit card from 118 118 Money Credit Card. To check the status of your credit card application, you can visit the 118 118 website and view the Contact Us page to get their contact details.

      According to the 118 118 Credit Card FAQs, application success is based on your credit score and other publicly available information (e.g. electoral register, county court judgments). The better your credit score the more likely you are to be accepted as a 118 118 Credit Card customer and the higher your eligible Credit Limit will be. 118 118 Money Credit Card will send you an electronic copy of your Credit Card Agreement once your card application has been accepted. You should receive your 4-digit PIN and your card within 9-10 days. Your card and your PIN will be sent separately for security reasons.

      Hope this helps and feel free to reach out to us again for further assistance.

      Best,
      Nikki

  2. Default Gravatar
    Kelly
    October 6, 2019

    Can the card be cancelled at any time?

    • Avatarfinder Customer Care
      Tom
      October 8, 2019

      Hi Kelly,

      Thanks for your question. You should be free to cancel the card at any time, but will first need to pay off any outstanding balance you have on the account. I hope this helps.

      Thanks,

      Tom

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