Yesterday, I discussed a new charitable credit card in the UK that donates a portion of its proceeds to a nonprofit organization. Today, I’ll talk about a new card from Bright Start issued by the state of Illinois that’s geared toward people looking to save for their child’s higher education.
In an effort to help parents save more money for college, they can use the new credit card and earn points, amounting to 1% of all purchases made, put into a Bright Start College Savings account. In addition, certain merchant partners offer additional rebates for card holders. Cardholders also receive $25 in their accounts after making their first purchase.
Although the card is new, it is already receiving some bad press. This is mostly because the Bright Start College Savings program is being overseen by the State Treasurer’s Office, so many question the real motives behind these new credit cards, leaving some disturbed by the fact that the state government appears to be getting a piece of the Bright Start proceeds.
Giannoulias doesn’t see a problem, however, asking “if you’re using the card to purchase items you’d buy anyway, why not pay for college? Every little bit helps.”
Personally, I don’t see a problem with the government offering a credit card to consumers. Wise consumers will make good choices and, if they see this card as a good fit they’ll use it to their benefit. In addition, I’d rather see the money earned from one of these cards going toward an educational program or toward other programs to improve the state than to a business looking to earn a profit.
Illinois isn’t the first state to roll out a credit card like this. Kentucky and Georgia also offer MasterCard credit cards that are associated with their state sponsored college savings programs.
If you are an Illinois resident that is interested in this card (which incidentally has no annual fee and offers an interest rate ranging from 12.49% to 14.49%), you can visit http://www.brightstartsavings.com/.
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