Nearly 50 per cent of UK consumers are using their credit cards as a means of protection in the case a firm goes bust, it has been revealed.

According to research by Saga, 46 per cent of Brits are using their credit cards to make purchases over £100 knowing that they will be able to claim for a refund if their supplier goes bust.

Andrew Goodsell, chief executive of the Saga Group, said: "The credit crunch has affected people in a number of ways and as a result have become more wary; choosing brands they trust and using credit cards as they provide added protection in uncertain times."

The research also found that 32 per cent of Brits have increased the use of their credit cards as a bid to get cashback and rewards.

Meanwhile, the launch of Abbey's latest credit card has been praised by an expert at a price comparison site.

Offering a zero per cent rate for 15 months on balance transfers, Peter Harrison of the website said: "Following on from the innovative Abbey Zero card, Abbey has bucked the trend again with its latest card offering."

However, he warned that those who do end up taking out the card should be clear of the amount transferred to it before making any purchases.