Two major credit card companies are currently testing a new type of credit card that allows consumers to get top-notch deals by participating in a kind of social media program.
A new type of account from MasterCard and Barclaycard US may help consumers looking for high-quality credit card offerings as long as they're willing to join an online community, according to a report from ZD Net. The new account, known as Barclaycard Ring, will essentially allow consumers to join a social network that allows the community to have a voice in negotiating all kinds of terms related to the associated credit card. The card is expected to be launched more broadly in the spring.
The terms that can be negotiated include everything from the basic interest rate to the rewards and fees associated with the card, the report said. To start out, the Ring card will come with an interest rate of just 8 percent, no annual fee, and no charge for balance transfers. This is all done through the online platform, which allows users to talk with each other about changing rates and fees, as well as give feedback directly to Barclaycard.
The company will also allow for users to receive greater clarity on its side, in the form of profit and loss statements, as well as the ability to share revenues generated from collective decisions that worked to improve the card's performance, the report said.
Credit card lenders are now looking for any way they can find to incentivize adoption of new accounts these days. Even as borrowers return to feeling better about dealing with card debt, many are still being more cautious in how they approach new accounts.