A survey earlier in the summer by Nielsen and the British Retail Consortium (BRC) revealed 60 per cent of UK consumers were pessimistic about their personal finances for the coming year.
71 per cent of respondents also admitted having to change their shopping habits in order to save on household expenses. But the outlook need not look so bleak for consumers including those with poor credit ratings.
Although interest-free credit cards may be strictly off-limits to consumers with poor credit histories, there is a new trend that may offer a lifeline – prepaid cards.
Prepaid cards can be an extremely useful for consumers regardless of their credit rating. They are an excellent product for people looking to stay out of the red, simply because they have no credit or overdraft facilities attached. Application for a card such as the Pockit prepaid MasterCard is extremely straightforward, with no bank account needed or any credit checks made.
A prepaid card works on a very different principle to a credit card. Instead of having a credit limit, prepaid cardholders load their card with money they already have encouraging consumers to spend within their means.
However, on the flip-side, as the information on a prepaid card is not generally exchanged with credit bureaus, healthy spending on a prepaid card is unlikely to instantly improve credit ratings.
Nevertheless it can encourage consumers looking to repair their credit rating into good spending habits. As a money-management tool a prepaid card is an effective method of budgeting and ensuring cardholders spend within their means.
There are further advantages to using accounts such as the Pockit prepaid card. Cardholders can earn cashback from selected High Street stores giving them more in their back pockets to spend elsewhere.
Money is tight within UK households across the country and homeowners are always attracted to new ways of saving money. That’s why more and more people are acknowledging the merits of prepaid cards.
Many prepaid card providers target their products solely at those with bad or no credit history alone. With the number of bankruptcy cases on the rise there are growing numbers of people in the UK that simply don’t have the credentials to successfully apply for a traditional credit or debit card.
As a result, a prepaid card is a great alternative for spending money on the High Street, paying bills and more. With complete control over your funds and the added bonus of cashback you can enjoy using a prepaid card at home, online and abroad.
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