Chris Van der Stad, president of New Millennium Bank, says the card offers a "good value" and a chance for borrowers to rehabilitate their credit ratings by paying on time and being responsible. As for the lack of a grace period, he says, "It's very expensive to process a low-balance card. That's why we have no grace period."Unsecured cards can be just as unattractive. HSBC markets the American Dream card, which, for a 14.99 percent annual percentage rate, offers cardholders the chance to enter a cash lottery for every purchase. This links two favorite American hobbies: shopping and gambling. But consumer advocates find the link "disturbing," Arnold says.
A spokeswoman for HSBC said, "The American Dream Card is but one of many credit card products HSBC offers. Consumers should choose a card that meets their individual needs."
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