There's a new credit card on the borrowing scene, and this one is backed by a surprising, social-networking sponsor. MySpace has teamed up with Citi in launching a card with its logo as part of a "Generation Forward" campaign. The card is being marketed as "the credit card that rewards you for doing the right thing," offering perks like a .25% APR reduction after three months to active users who stay under their credit line and pay on time.
There's no annual fee on the card and a six month promotional period that comes with a zero percent APR on purchases and balance transfers. However, a 14.24% variable APR for purchases kicks in after six months, which is hardly a rate I'd want on my credit card.
The concept of "rewarding" customers for handling credit responsibly is much better than dishing out points to those who spend the most, but credit card carriers make their money from interest. (Notice there aren't any rewards for paying off your balance every month.) This card is targeting young consumers, and I'm concerned the MySpace partnership will woo some to apply for the card without doing their research.
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