As people find it much more difficult to get a normal credit card, the prepaid credit card
is set to become the next big payment solution for individuals.

Recent figures suggest that almost 50% of people in the UK who apply for a regular unsecured credit card are now routinely turned down.
Most of the people who are turned down for these cards have either bad debts and/or low credit scores.

UK credit card bad debts in 2009 reached more than £4B and credit card companies are not taking any unnecessary risks. Today, you need
a much better credit history to get an unsecured credit card and in the current economic climate these card companies are unlikely to ease
their lending criteria any time soon.

Many people who are turned down for a conventional credit card (in addition to those who do not wish to take on any more debt with interest
to pay) and who do not wish to use the debit card that comes with most bank accounts would still like a Mastercard branded solution for their
payment needs as Mastercard is accepted virtually everywhere.

This is where the prepaid credit card comes in. These cards generally look and feel like a normal Visa or Mastercard card complete with logo.
They behaves in exactly the same way except that you cannot borrow on them. These cards must be prepaid with your own funds before they
can be used. That's essentially the only difference.

These type of cards have been available in the US for years but you couldn't receive one in the UK due to various regulations.
Prepaid cards have only been readily available in the UK for a couple of years.

The first major prepaid card available in the UK was the Cashplus prepaid Mastercard followed by numerous others from companies such as
Virgin and multiple brand cards using the services of the Newcastle Building Society.

The only problem with prepaid credit cards are the fees associated with them. Obviously these companies must make them pay somehow
and fees are the way that they do it.

However, that has recently changed. O2 in partnership with Natwest are providing free prepaid Visa cards. There are no fees
associated with these cards at all.

It wouldn't be surprising to see other free cards enter the market in the near future which could challenge the card issuers that charge fees.

In response, top prepaid card companies such as Cashplus, Eclipse and White Eagle are already providing added value with their cards by
offering other services such as credit building facilities for those with adverse credit and Virgin are offering discounts on some of their products
and services. After all, many of the people who apply for these prepaid cards are doing so because they have been turned down for a credit
card because of bad credit in the first place.

These new free prepaid cards in combination with the lack of availability of unsecured cards could make 2010 the year when the
prepaid credit card really became part of the mainstream. The consumer world
is definitely following the corporate world where prepaid cards are showing massive growth in their use in company
payroll and other solutions.

For additional information on prepaid credit cards, visit www.creditsolveuk.com

CreditSolveUK provide UK credit advice for those with adverse credit.