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Johnny

Is There A Credit Crash On The Cards

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Saw a news article this morning about Pre-Paid Credit Cards, it appears Visa and Mastercard are going to launch Pre-Paid Credit Cards this September. A bit like mobile phone top-up cards, where you must depart with your dosh before you can get any credit on the cards.

Visa and Mastercard must be aware of the bad debt that is coming over the next few months due to people defaulting on loans / credit. This way they keep the business , you don't need a credit check to get one of these cards.

Is it just me or is all this coming in about 1 year too late, we all saw the credit problem a year ago but nothing was done.

http://www.sky.com/skynews/article/0,,30400-13402913,00.html

:unsure::unsure::unsure:

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Saw a news article this morning about Pre-Paid Credit Cards, it appears Visa and Mastercard are going to launch Pre-Paid Credit Cards this September. A bit like mobile phone top-up cards, where you must depart with your dosh before you can get any credit on the cards.

Visa and Mastercard must be aware of the bad debt that is coming over the next few months due to people defaulting on loans / credit. This way they keep the business , you don't need a credit check to get one of these cards.

Is it just me or is all this coming in about 1 year too late, we all saw the credit problem a year ago but nothing was done.

http://www.sky.com/skynews/article/0,,30400-13402913,00.html

:unsure:  :unsure:  :unsure:

Is it just me, or is a pre-paid credit card just a debit card?

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Is it just me, or is a pre-paid credit card just a debit card?

You're right, its a bit like me saying I've got a pre paid car, I pay for it, I service it , fill it with petrol and its all prepaid payed for by me.

Some fu**wit at the bank hasn't thought this through, the whole idea of a credit card is to even the bumps out with peolple spending patterns, some months they need a bit or credit and then the next month when they fell flush they pay it back, if you had the month in the first place why bother with a credit card.

Edited by Dicky

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Is it just me, or is a pre-paid credit card just a debit card?

Pre paid credit cards seem to be aimed at people who cant get a normal debit card ("cant get a bank account")

Cant see the appeal - surely if someone has the cash to buy one they dont need a card in the first place??

:rolleyes:

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Is it just me, or is a pre-paid credit card just a debit card?

A debit card takes money straight out of your bank account.

These are credit cards from Visa and Mastercard but the credit has to be on the card first before you can use it. ie. Topped up.

With Barclaycard and other banks being more stringent on who qualifies for a credit card and other banks following suit, in the near future the only option for a lot of people with bad credit will be one of these credit cards.

Edited by Johnny

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A prepaid credit card would give more consumer protection than a debit card.

I agree. Especially over the internet. It would also mean that my sister-in-law wouldn't have to use our cards to reserve hotels etc......

(she doesn't have one through choice, not because she can't get one)

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Isn't it difficult for people who have declared themselves bankrupt to get a bank account?

Maybe Mastercard are expecting a lucrative gap in the market?

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I wonder how much interest they're intending to pay on the credit that you have stashed on the card.

I suspect it won't be about 15% APR. :lol:

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Incredible these pre-paid cards are just a lure to get your custom. They will attract the worst people to be loaned money in the future - it must be easy to upgrade to a full blown credit card.

I can see it now, they will advertise it to young impressionable people - the unemployed, those on benefits etc.

Why carry cash - its dirty, unhygienic and soooo unfashionable - try our plastic (available with many different designs, the most popular is the light up neon design) -Looks just like a credit card; look like a film star when you buy your handbag or pay for that meal in the 5 star restaurant. Be the ENVY OF YOur FRIENDS. A lady with big assests and long legs winks - end of ad....

Sign up now! FREE £5 to spend when you top up £100. Limited offer!

Edited by trev

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The appeal will be that it has the word "credit" attached to it.

Gives the impression of borrowing even if you're not. Fits right in with todays culture whilst minimising bank risk.

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Guest struthitsruth

"Providers say the potential for the cards in Britain, where some 2.4 billion people do not have bank accounts, is "vastly untapped"."

<_<

Er, isn't the population of Britain about 60 million ?

Sky News reporter could have done better.

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I suspect the business idea behind it is to provide the cards with a very low credit limit which is hard to keep to, like £250, and then to allow (authorise) transactions to cause it to overstep that by about 20% so as to then reap a £50 "over limit" charge every month. Or am I being too cynical...

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I don't have a credit card through choice. It does get annoying sometimes. I tried to reserve a hotel this weekend and they did not want to know as I did't have a cc. Prepaid is a good idea for someone like me. You can have the benefit of a card without using it day to day or getting drawn into borrowing.

I choice to have pay as you go mobile as well. No credit facility no debt. I'm not putting into the banks over inflated profits.

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I don't have a credit card through choice. It does get annoying sometimes. I tried to reserve a hotel this weekend and they did not want to know as I did't have a cc. Prepaid is a good idea for someone like me. You can have the benefit of a card without using it day to day or getting drawn into borrowing.

I choice to have pay as you go mobile as well. No credit facility no debt. I'm not putting into the banks over inflated profits.

How would you be contributing to banks' profits by having a credit card and paying it off every month? That sounds like using their money to me. I can only conclude that you don't trust yourself to be responsible with a credit card.

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Guest wrongmove
How would you be contributing to banks' profits by having a credit card and paying it off every month?

The banks charge the retailers a fee (percentage)

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I agree. Especially over the internet. It would also mean that my sister-in-law wouldn't have to use our cards to reserve hotels etc......

(she doesn't have one through choice, not because she can't get one)

I think your sister in law is taking the proverbial - you enjoy the risk of her using dodgy internet sites with your card, she has none of the problems of a bad credit rating if the details are stolen and abused.

I would insist she get her own, or use cash.

ABB

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How would you be contributing to banks' profits by having a credit card and paying it off every month? That sounds like using their money to me. I can only conclude that you don't trust yourself to be responsible with a credit card.

They also make money from the shops. Seems to me you don't know how credit cards work

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Do you keep all your money in your matress then, smart move.

No credit union. Guaranteed by the government. The one I am with pays the same rates as the Banks - B/S but the profit is ploughed back in.

SMART MOVE

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Guest Charlie The Tramp
The banks charge the retailers a fee (percentage)

Clever move eh, think of all those millions applying for one, having their wages paid into the account and the banks getting all those fees when they spend. After all they get nothing if they pay in cash. They are not silly. :D

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The whole idea is a contradiction in terms - no cash - no credit.

Credit as I understand it is money before you earn it, or in the case of credit cards, a short term high interest loan.

The proposal is really a way of turning cash into electronic money. I see great scope for fraud, once the criminal fraternity has figured out how to charge-up the cards fraudently.

Of course, the electronic money supply is far easier to control than cash (Sorry, server down at the moment...).

Buy gold :D

ABB

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They also make money from the shops. Seems to me you don't know how credit cards work

Of course I know how they work but you pay the same for what you buy, however you pay for it. If you use a credit card it goes in the banks' coffers; if you pay by cash, it goes in the retailers' coffers - makes no difference to you either way.

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An lurking American here. We have prepaid credit cards here. I got one for my niece when she graduated high school. The ones here work like a gift card. Once you spend your $100 it's gone. They wont let you spend $120. There are no "over the limit fees" etc. She could spend it anyplace they took CC. In the US that is everywhere. I figured it was a great gift, if it gets lost or stolen it's traceable, and if she wanted she could buy something off the Internet. They are a great choice in place of travelers checks too. But for day to day spending, Why?

I find this blog interesting. I figure you guys are 6 months to a year ahead of us in the housing bubble.

Karen

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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