Prepaid credit cards could be useful, Equifax says

Prepaid credit cards could be really useful for some consumers in the current financial climate, credit reporting agency Equifax has stated.

Although this method of payment has "come and gone" in recent years, it may be a good alternative for those who cannot obtain a standard credit card, said the organisations' external affairs director Neil Munroe.

Not only can it avoid incurring more debt, it could also help some borrowers to re-establish their credit rating if the information is shared with other bureaux, he added.

"The prepaid card may allow them to still maintain a credit card, as obviously credit cards still have certain benefits like some of the protection they give you on purchases and so on," Mr Munroe stated.

According to UK payments association Apacs, recent research showed that the most likely social group to own credit and debit cards is adults in East Anglia, while adults in the north-east make the most cash withdrawals in the country.

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