Credit card attempts to teach financial discipline

30th June 2006

A credit card that combines the use of a prepay system and the virtues of contributing to charity could help consumers avoid high levels of credit card debt.

The 360money credit card allows transactions to be viewed online or over the phone, as with most other credit cards, but the prepay system means the consumer is never borrowing or getting into debt, something 360 money says eradicates "nasty surprises".

Such cards are useful for people with poor credit ratings or for people who have just arrived in the country, according to Advanced Payment Solutions, the Times reports. The 360money credit card also offers the goodwill incentive of some other credit cards by incorporating a charitable donation through purchases.

The credit card, one of a range of prepay products to recently enter the market, has versions for both children and adults. The company suggested that it and companies like it play an important role in financial education.

"Because [it] does not offer any form of credit, there is never any risk of getting into debt," 360money's Philippe Dufour said, according to the Times, offering that as people cannot go overdrawn or borrow money they do not have, they learn financial discipline.

Other prepay credit card solutions include the cashplus prepaid MasterCard, which allows reloading at any Post Office.

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