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I wonder if there is a market for secured credit cards with low interest. Maybe backed by a HELOC or stock portfolio. By lowering the default risk significantly lenders should be able to offer loan values closer to car loan numbers than loan shark numbers.

I think people with enough assets to secure such a card might be those less likely to carry a balance, but maybe a lower interest rate would entice them.



>I wonder if there is a market for secured credit cards with low interest. Maybe backed by a HELOC or stock portfolio.

What's the difference between that and transferring your credit card balance to your HELOC? You don't pay any interest on credit cards within the grace period on your bill, so this only adds marginal convenience


And now you just turned unsecured debt into secured debt. In some states, your home is isolated from bankruptcy and other civil torts.

But not against debt that you secured by it.


> I wonder if there is a market for secured credit cards with low interest. Maybe backed by a HELOC or stock portfolio.

I would think the overlap between people who need to carry a balance on their credit card and those who have a HELOC (own a property with significant equity) or have a non-trivial stock portfolio, is rather small.


Whats the value to the consumer who already doesn't carry balances? Higher Limits?


Some brokerages offer debit cards that let you spend excess margin at very (compared to credit cards, at least) rates.


What's wrong with debit cards?


Debit cards link directly to your bank account and have very few consumer protections.

Good luck getting your money back from a bad merchant. Especially if it's A LOT of money.

https://www.nerdwallet.com/article/credit-cards/credit-card-...

To simplify:

- A Debit Card - It's your money on the line, and the bank has little interest in spending their money protecting it.

- A Credit Card - It's the bank's money on the line, and the bank has a lot of interest in spending their money protecting it.


You mean, other than it's a completely different type of fund, and therefore not comparable in any way?




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