Over recent years the popularity of prepaid credit cards has been rising amongst consumers that cannot get a standard debit or credit card, and also those that are looking to ensure that they keep within a budget yet want to enjoy the ease and convenience of card payments. A number of providers now offer prepaid credit cards, and these provide a suitable and convenient alternative to standard credit cards for many people.

A recent report has suggested that by 2010 the prepaid credit card market is really set to take off, with the popularity of these cards set to increase. It is thought that by 2010 the prepaid credit card market could be worth around £4.5 billion, and they are likely to become more popular as an increasing number of people find that they are unable to get a standard credit card due to the tighter credit conditions that have stemmed from the global credit crunch.

One official said: “A prepaid credit card offers a simple, effective and safe way of paying. You top up the card with money and then use it to pay for goods, safe in the knowledge that you can never go overdrawn or into debt.”

He added: “There are currently about 2.3 million prepaid credit card holders in the UK, and this figure is just set to keep on rising as people realise the benefits of a prepaid card - by 2010, the prepaid credit card market is estimated to be worth around £4billion with more than 7 million prepaid card holders.”

He continued: “Parents looking for a way to educate their children to be responsible with their money find that prepaid cards provide an excellent teaching method because they give the child the chance to be independent and even purchase goods online, but there is a strict budget in place. This can be handy for everyday life, or perhaps if a child is going on a school trip where they need cash.”

Recent Additions:

• Little point in a rewards based credit card for those that fail to collect
• Many cardholders can become confused due to multiple credit cards
• Credit card switching likely to continue
• Credit card rejections result in increase in false information
• Some consumers increase credit card spending due to credit crunch