Blurring the lines between deposits and credit

http://money.cnn.com/2007/07/30/rea...gage_payoffs/index.htm?postversion=2007080106

I've talked to some people where I work about a product like this.

Basically you would combine your checking account with the amount you have been approved for credit wise say on your credit cards. Your paycheck gets deposited to that account each month and any checks you write come from there but your credit card also comes from there. You could have a positive balance which would pay you interest or a negative balance up to the amount you have been approved for where you paid interest.

I think that is where we will head in the future.

 

So your credit card gets paid from you checking account? Like a Debit card? I would not want any credit card tied to my account as in a line of credit. That is just stupid.

 

The accounts are the same. If you are net positive you get paid interest if you are net negative you pay interest. If you do direct deposit, you paycheck goes toward defraying the net negative amount immediately instead of waiting until you get the credit card bill.

My point is there is really no need for two separate accounts and combining them would actually be better for most consumers.

 

So basically it is a credit/debit card. With all the irresposible spenders out there, sounds like a disaster in the making.

 

I have like a half dozen accounts. i like it that way.

 

Jez. Sounds like a new way for banks to make money.

 

Yeah but it could benefit us, too. In other words, to compete they may have to offer great interest rates on any balnce for checking, otherwise you could just have a different account, like now. Some with credit rates - they'd hve to be great or else you can go elsewhere.

Still - it would be of no use for me.

 

offer great interest rates? Are we talking banks here?