Consumer Payment Card News

Mortgage Equity Card

The second rewards credit card linked a home mortgage was introduced this week by GMAC Mortgage and MBNA America Bank. The new “Equity Rewards Platinum Plus MasterCard” comes on the heels of Citibank’s “Home Rebate Platinum Select MasterCard” launched in mid-April. The new GMAC/MBNA card helps cardholders pay down their mortgage balance with GMAC Mortgage by applying the “Equity Rewards” directly to the mortgage principal. Citi’s mortgage credit card links the rebate feature to the cardholder’s mortgage, regardless of the provider. The new “GMAC Mortgage Equity Rewards Platinum Plus MasterCard” offers one point for every dollar in net retail purchases charged to the card. Each time a cardholder accumulates 2,500 points, $25 is credited automatically to the cardholder’s mortgage principal with GMAC Mortgage. There is no annual limit on points and no annual limit on how many “Equity Rewards” can be applied to the reduction of mortgage principal. Redemption is automated and occurs once each quarter. The new card is offered at a 7.9% APR and includes an introductory rate of 0% on cash advance checks and balance transfers until April 2005, as well as credit lines of up to $100,000. The “Citi Home Rebate Platinum Select MasterCard,” launched last month, also offers a 1% rebate on all purchases, with no annual or lifetime cap. The Citibank card carries no annual fee and 0% interest rate on purchases and balance transfers through November 2004. The go-to APR is prime +6.99%. For more information on the “GMAC Mortgage Equity Rewards Card” call 800-821-8758.

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