New Gimmick Credit Cards - Good Idea?
The "Bread Maestro" credit card is gaining in popularity. This 'easy to obtain' credit card is not a credit card at all. The fact that consumers do not need a credit check should be a warning. "It is thought that prepaid cards will take over from credit cards by the year 2010," states The UK Credit Card GB. On the surface there seems to be no draw backs.
You simply top it up with cash and it will never let you overspend as it is not linked back to an overdraft like a debit card is. It gives you the convenience of paying with a card, without the worry of going overdrawn, according to The UK Credit Card GB.
These cards do not have fees like traditional credit cards. Lack of transaction fees and withdrawal fees is a big draw for many people. At this time, The Bread Card, is the only one available in Liverpool. Various Asda stores are marketing the card, and if it does well, it will expand across the UK.
The Sun, Britain's best-selling daily newspaper, is launching a pre-paid MasterCard to help readers combat debt. The Sun card, which is being launched in partnership with Tuxedo Money Solutions, aims to rival The Mirror's existing Quidity prepaid debit card. The card is not attached to a bank account and can be loaded with cash through PayPoint and Post Office outlets across the UK, wage transfers, credit or debit cards online and bank transfers. The launch will be supported by marketing and promotions in the newspaper and across its digital, web and mobile properties, according to Marketing Week.
At first glance, the pre paid cards are nothing more than ATM bank cards. However, there are dangers. First, lost cards are gone. Upload £200 on the card and lose it, the £200 is gone. Also, the fact that there is no monthly bill tracking expenditure means that shoppers can easily lose track of the money spent each month.
Published on October 8, 2007
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