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Own Brand credit card

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Had an idea. What if I could start my own brand credit card. How would I go about it. I would probably call it the fairness card. The principles would probably be based on a maximum interest rate, maybe a tracker, but capped. I would also scrap those annoying penalty charges and would offer reduced rate balance transfers with no fees. What about overseas tranaction fees, would have to cut those. I would also allow people to set up a minimum percentage direct debit to encourage those that cant afford a full repayment to pay a higher percentage automatically thus decreasing the debt. What would you do?

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  • Swans1912
    Swans1912 Posts: 1,658 Forumite
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    sparkey1 wrote: »
    Had an idea. What if I could start my own brand credit card. How would I go about it. I would probably call it the fairness card. The principles would probably be based on a maximum interest rate, maybe a tracker, but capped. I would also scrap those annoying penalty charges and would offer reduced rate balance transfers with no fees. What about overseas tranaction fees, would have to cut those. I would also allow people to set up a minimum percentage direct debit to encourage those that cant afford a full repayment to pay a higher percentage automatically thus decreasing the debt. What would you do?

    And then when people default on the money, you wouldn't 'earn' enough to cover your losses from even one 'bad customer'.
  • daveboy
    daveboy Posts: 1,400 Forumite
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    I wouldn't run a business that would go to the wall in a few seconds...which it appears is exactly what you would do.

    Did you never realise that businesses are there to make a profit?
  • Swans1912
    Swans1912 Posts: 1,658 Forumite
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    daveboy wrote: »
    I wouldn't run a business that would go to the wall in a few seconds...which it appears is exactly what you would do.

    Did you never realise that businesses are there to make a profit?

    Even if sparkey1 tried to run it so it broke even he still wouldn't manage it on his business idea! Why don't you try and get into the small loans market and offer some 'great deals'... more chance than a credit card? Still face a similar risk however.
  • sparkey1
    sparkey1 Posts: 444 Forumite
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    Just a bit of fun remember. But what if. It seems to me that there is very little innovation in the credit card market at the moment. There is a trend to put rates up, so why not be different. You could argue that credit cards are putting their rates up because the risk has increased. You could also argue that they are increasing the risk by placing a bigger burden on customers that are paying the minimum amounts. Im not entirely stupid..for the card to work, credit risk would need to be managed, and everyone would have to pay a minimum direct debit per month to keep costs down. However I would move away from the current habit of some companies to raise interest rates as soon as you start only paying the minimum, and I would insist on a minimum payment of £25 per month or 5% as opposed to the 2% or £5 after interest that some companies do to encourage you to stay in debt for longer. What would you do?
  • Robert_Sterling_3
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    dream on ........
    ...............................I have put my clock back....... Kcolc ym
  • sparkey1 wrote: »
    Had an idea. What if I could start my own brand credit card. How would I go about it. I would probably call it the fairness card. The principles would probably be based on a maximum interest rate, maybe a tracker, but capped. I would also scrap those annoying penalty charges and would offer reduced rate balance transfers with no fees. What about overseas tranaction fees, would have to cut those. I would also allow people to set up a minimum percentage direct debit to encourage those that cant afford a full repayment to pay a higher percentage automatically thus decreasing the debt. What would you do?


    Stick to the day job!
  • simon_templar_2
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    I think the pitch would to expulsion from the den, im out.
  • PBA
    PBA Posts: 1,521 Forumite
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    sparkey1 wrote: »
    Im not entirely stupid..for the card to work, credit risk would need to be managed, and everyone would have to pay a minimum direct debit per month to keep costs down.
    The problem there is, as soon as your customers stopped being able to afford their DDs then they would just bounce, so still leaving you without your money. While it would be great to see CC interest rates coming down, the risk means that they have to stay where they are.
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