topic Re: Zerocard in General Credit Topics

Zerocard

Anonymous — Mon, 27 May 2019 00:29:07 GMT

On "The Points Guy" (05-26-19) the following information was released. Maybe this can be our next go hot item (been quiet around here so lets "kick the pig" Navy talk for AJC for awhile)

The company, Zero Financial, said last week that it had secured a round of financing that brought its funding to $35 million and that it would start making the card, called Zerocard, available to more than 200,000 people on its waitlist in the next few weeks.

Perhaps the most attractive feature will be that it offers unlimited cash-back at a rate as high as 3 percent on all purchases, which would make it among the highest flat-rate cash-back cards in the country. To earn that high rate, though, there’s a twist: You start at 1 percent cash back, but as you successfully refer more friends to get the card, the higher your cash-back rate goes. To get the full 3 percent, you have to refer four friends.

The other notable feature is that the Zerocard is linked to a Zero Checking account through a mobile app, which lets you see your account balance and prevents overspending. To earn the full amount of cash back, customers have to pay the full amount on time.

The company says the product allows people to “bank like debit and earn like credit.”

Oh, of interest is: "Still, new players have traditionally had a tough time gaining traction against some of the country’s biggest card issuers. Zero’s CEO, age 36, is a former product developer for the app Words With Friends."

Will add that "Words With Friends 2" is great play it every day but ... the CEO's background seems to not include financial? Hmm ... don't tell me another Blispay?

Re: Zerocard

Brian_Earl_Spilner — Mon, 27 May 2019 00:31:40 GMT

Kinda curious how this will play out. $30MM doesn't seem like a lot of capital for unlimited 3% cashback, especially since in order to get it, you need more people to sign up, who will also be getting 3%.

Re: Zerocard

Anonymous — Mon, 27 May 2019 01:09:04 GMT

@Brian_Earl_Spilner wrote:
Kinda curious how this will play out. $30MM doesn't seem like a lot of capital for unlimited 3% cashback, especially since in order to get it, you need more people to sign up, who will also be getting 3%.

Presumably not unless each of those people you get to sign up each get 4 people to sign up.

Re: Zerocard

pinkandgrey — Mon, 27 May 2019 01:11:31 GMT

Interesting. A card that requires friends with good credit lol. It’s a neat idea with the checking account setup. It sounds like a charge card basically. It’s kind of funny—the “pyramid scheme card” lol. As Brian_Earl_Spilner said, it will be interesting to see how it plays out.

Re: Zerocard

Revelate — Mon, 27 May 2019 01:34:43 GMT

Oh great, way to take out the 80’s pyramid schemes when it came to Avon or whatever and put it in a credit context.

Figure 20m of that will go towards reserves and say that 10% of CC CL’s have to be accounted for (might be less TBH) that’s what 200m of CL? 1k tradelines for errybody?

I am probably off on the 10% this scheme doesn’t really work unless it’s at 2% on this stake and they have to know that on the business plan side.

Re: Zerocard

Brian_Earl_Spilner — Mon, 27 May 2019 01:41:14 GMT

I just looked into it more. 3% carbon requires 4 referrals or an annual spend of $100k, the 2% magnesium requires $50k annual spend. But you get metal cards, so there's that. 👍

Re: Zerocard

CreditInspired — Mon, 27 May 2019 02:50:41 GMT

@Anonymous wrote:
On "The Points Guy" (05-26-19) the following information was released. Maybe this can be our next go hot item (been quiet around here so lets "kick the pig" Navy talk for AJC for awhile)

The company, Zero Financial, said last week that it had secured a round of financing that brought its funding to $35 million and that it would start making the card, called Zerocard, available to more than 200,000 people on its waitlist in the next few weeks.
Perhaps the most attractive feature will be that it offers unlimited cash-back at a rate as high as 3 percent on all purchases, which would make it among the highest flat-rate cash-back cards in the country. To earn that high rate, though, there’s a twist: You start at 1 percent cash back, but as you successfully refer more friends to get the card, the higher your cash-back rate goes. To get the full 3 percent, you have to refer four friends.
The other notable feature is that the Zerocard is linked to a Zero Checking account through a mobile app, which lets you see your account balance and prevents overspending. To earn the full amount of cash back, customers have to pay the full amount on time.
The company says the product allows people to “bank like debit and earn like credit.”

Oh, of interest is: "Still, new players have traditionally had a tough time gaining traction against some of the country’s biggest card issuers. Zero’s CEO, age 36, is a former product developer for the app Words With Friends."

Will add that "Words With Friends 2" is great play it every day but ... the CEO's background seems to not include financial? Hmm ... don't tell me another Blispay?

I was thinking the same thing.

And securing a round of $35M financing—uhoh—is that really enough?

Re: Zerocard

CreditInspired — Mon, 27 May 2019 03:04:41 GMT

@Brian_Earl_Spilner wrote:
I just looked into it more. 3% carbon requires 4 referrals or an annual spend of $100k, the 2% magnesium requires $50k annual spend. But you get metal cards, so there's that. 👍

And the 1.5% cashback is 1 friend or $25K annual spend. Plus, you have to have their Zero checking so payments can be deducted.

Now why cant I come up with these money-making schemes 😩

Re: Zerocard

Brian_Earl_Spilner — Mon, 27 May 2019 03:42:40 GMT

@CreditInspired wrote:
@Brian_Earl_Spilner wrote:
I just looked into it more. 3% carbon requires 4 referrals or an annual spend of $100k, the 2% magnesium requires $50k annual spend. But you get metal cards, so there's that. 👍
And the 1.5% cashback is 1 friend or $25K annual spend. Plus, you have to have their Zero checking so payments can be deducted.

Now why cant I come up with these money-making schemes 😩

If you can secure $30MM in funding, you can start your own credit card.

Re: Zerocard

Anonymous — Mon, 27 May 2019 04:43:30 GMT

@pinkandgrey wrote:
Interesting. A card that requires friends with good credit lol. It’s a neat idea with the checking account setup. It sounds like a charge card basically. It’s kind of funny—the “pyramid scheme card” lol. As Brian_Earl_Spilner said, it will be interesting to see how it plays out.

Lol that’s word for word what went through my head — the pyramid scheme card.

Thanks but no thanks. I don’t think my friends have good enough credit to do it anyway. 😅

Re: Zerocard

CreditInspired — Mon, 27 May 2019 09:38:33 GMT

@Anonymous wrote:
@pinkandgrey wrote:
Interesting. A card that requires friends with good credit lol. It’s a neat idea with the checking account setup. It sounds like a charge card basically. It’s kind of funny—the “pyramid scheme card” lol. As Brian_Earl_Spilner said, it will be interesting to see how it plays out.
Lol that’s word for word what went through my head — the pyramid scheme card.

Thanks but no thanks. I don’t think my friends have good enough credit to do it anyway. 😅

And, neither I nor my friends have $100K, $50K or even a measly $25K for a monthly spend.

Re: Zerocard

CreditInspired — Mon, 27 May 2019 09:40:15 GMT

@Brian_Earl_Spilner wrote:
@CreditInspired wrote:
@Brian_Earl_Spilner wrote:
I just looked into it more. 3% carbon requires 4 referrals or an annual spend of $100k, the 2% magnesium requires $50k annual spend. But you get metal cards, so there's that. 👍
And the 1.5% cashback is 1 friend or $25K annual spend. Plus, you have to have their Zero checking so payments can be deducted.

Now why cant I come up with these money-making schemes 😩
If you can secure $30MM in funding, you can start your own credit card.

True

Re: Zerocard

Anonymous — Mon, 27 May 2019 11:29:55 GMT

@CreditInspired wrote:
@Anonymous wrote:
@pinkandgrey wrote:
Interesting. A card that requires friends with good credit lol. It’s a neat idea with the checking account setup. It sounds like a charge card basically. It’s kind of funny—the “pyramid scheme card” lol. As Brian_Earl_Spilner said, it will be interesting to see how it plays out.
Lol that’s word for word what went through my head — the pyramid scheme card.

Thanks but no thanks. I don’t think my friends have good enough credit to do it anyway. 😅
And, neither I nor my friends have $100K, $50K or even a measly $25K for a monthly spend.

Well those are yearly spend requirements but yeah I couldn’t do any of those either 😂

Re: Zerocard

CreditInspired — Mon, 27 May 2019 12:21:17 GMT

@Anonymous wrote:
@CreditInspired wrote:
@Anonymous wrote:
@pinkandgrey wrote:
Interesting. A card that requires friends with good credit lol. It’s a neat idea with the checking account setup. It sounds like a charge card basically. It’s kind of funny—the “pyramid scheme card” lol. As Brian_Earl_Spilner said, it will be interesting to see how it plays out.
Lol that’s word for word what went through my head — the pyramid scheme card.

Thanks but no thanks. I don’t think my friends have good enough credit to do it anyway. 😅
And, neither I nor my friends have $100K, $50K or even a measly $25K for a monthly spend.
Well those are yearly spend requirements but yeah I couldn’t do any of those either 😂

Oh this is a hoot. I can't believe I actually wrote MONTHLY! That's Bill Gates, Warren Buffet kind of spend.

Re: Zerocard

Anonymous — Mon, 27 May 2019 12:30:18 GMT

In my mind I find it interesting the amount of money the CEO could raise with his outstanding background in finances and debit/credit card operations. Think I will contact him to learn secrets on playing "Words With Friends"! Oh, the point on a Pyramid Scheme is of note ... don't remember a good one of late?

Re: Zerocard

Revelate — Mon, 27 May 2019 15:20:13 GMT

Between the loss of the one month grace period if you are playing hard with credit, and the pyramid scheme nature of it unless you are spending heavy (not sure I could possibly withhold enough taxes to get to 100k a year; that is a lot for even a 1% income) I really can’t see this being favorable for people who are already credit savvy that don’t want to start begging their friends to build a pyramid.

I think the market will wait and see, maybe if this gains traction some of the stupid fee structures we’ve all seen in traditional banks and credit unions might change: that would be a consumer win across the board but we will see if that occurs.

Re: Zerocard

Anonymous — Mon, 27 May 2019 15:25:47 GMT

@Brian_Earl_Spilner wrote:
But you get metal cards, so there's that. 👍

Sweet, I'm in. Card material > rewards structure. I'll take a metal 1% CB on everything card over a crappy plastic 3% CB on everything card any day!

Re: Zerocard

AverageJoesCredit — Mon, 27 May 2019 19:21:06 GMT

Sorry i like my Card ....Card!

No Zero, Diet, or smelling like a Petal🍃😎

Re: Zerocard

Brian_Earl_Spilner — Tue, 28 May 2019 02:19:36 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
But you get metal cards, so there's that. 👍
Sweet, I'm in. Card material > rewards structure. I'll take a metal 1% CB on everything card over a crappy plastic 3% CB on everything card any day!

It's gonna be a hit here because of that.

Re: Zerocard

Anonymous — Wed, 29 May 2019 02:09:05 GMT

Such a strange name.....

3.2.1.zero

rather than 3.2.1.liftoff

or even 3.2.1.contact

ohh and i think amway comes to mind of a successful "pyramid scheme", well at least for the ones on top, the owners ahhahahahaha