Green Dot will offer Credit Cards… again

Prepaid card giant Green Dot, who recently announced that they would cease selling MoneyPak (read here), now plans to begin offering credit lines to its customers. It’s a move the company has tried before, in 2006, but those cards came with a very low limit and heavy fees. The new version will hopefully make more sense.

Green Dot

Green Dot CEO Steve Streit said in an earnings call with analysts last Thursday that he envisions Green Dot offering a secured credit card and an unsecured line of credit. These products, a type of subprime credit card, will be marketed to Green Dot’s base of low- and moderate-income customers.

“FICO scores are not what they used to be. In our demographic, they were never good to begin with,” Streit said during the earnings call. “So if you’re a single mom with two kids, and you’re making $50,000 or $60,000 a year in household income, you’re not going to get a loan from any bank. We want to change that with a highly pro-consumer, well-priced product.”

Most likely these cards won’t be a game changer. There’s so many credit cards offers out there nowadays, and probably anyone will find a better deal that a Green Dot card. But let’s wait and see, maybe we’ll be surprised.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe to Blog via Email

Enter your email address to subscribe to receive notifications of every new post by email.

Join 5,851 other subscribers

Support the site: Shop through our 

Stay Connected
Join our Facebook Group
Popular Posts
Homepage | About Us | Privacy Policy | Disclosure Policy

Subscribe to our Newsletter

Subscribe to receive one daily email (sent at 8PM ET, Monday through Friday) with all the news and deals.