Bankruptcy & Foreclosures

We’re always talking about the ways credit card companies market their cards to lure in potential customers but American Express has recently gotten a little fruity about this concept.

Rich Duprey has recently posted a great blog entry about the new Plum card. He goes on to say:

We’ve run through all the base metals- gold, silver, platinum, titanium, and we’ve got the sleek black card, so now, it seems, we’ll start turning to the fruits of the world in search of inspiration to promote credit cards.

With an initial run of only 10,000 cards, applicants were given an Apple iPhone with their applications! AmEx will be announcing some of the first companies to get a hold of the Plum card on Dec. 16 during MSNBC’s Your Business.

Despite the card’s silly name, it’s actually a pretty good idea: Small-business owners can either pay off the card’s balance in full within 10 days and receive a 2% credit applied back to their bill, or they can extend the payments out if necessary. By paying as little as 10% initially, and the balance within two months, cardholders can make purchases interest-free.
Until now, small businesses had a difficult time negotiating terms of credit with their suppliers without the heft of a major corporation backing them. Suppliers often demanded payment up front from small-business owners, and oftentimes, they had to use cash to get the best deal. The Plum Card mimics trade terms that are often offered to businesses, but are frequently inaccessible to smaller ones.

There’s no credit limit on the Plum Card, and businesses can save money by paying off their balance at the end of each billing cycle. It also allows businesses to use just one card for all their business purchases, which is what I’m sure American Express was trying to do. And the card offers automatic savings for purchases made at select partners, like FedEx, Kinko’s, and Hyatt hotels.

The entire article can be read by clicking here.