Prepaid credit cards likely to become "more prevalent"
Prepaid credit cards are likely to become "more prevalent" in the future, it has been suggested.
Prepaid credit cards likely to become "more prevalent"”
Neil Munroe, the director of external affairs at Equifax, states there are a number of reasons for this trend.
One is that prepaid credit cards enable people to use such a payment type without incurring any debt.
In addition, they may also be accessible to those who cannot obtain a more traditional card due to having a poor credit record.
He explains that such individuals could benefit from using such a method of payment as they offer perks such as purchase protection.
"It may also help people re-establish their credit rating as well," he concludes, noting information on such cards is often shared between providers and credit bureaus.
Providers of prepaid credit cards include Virgin Money.
The company states users do not need a bank account to use it and that it also provides a number of discounts with Virgin companies.
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