Google Credit Card

Recent reports by Reuters, shows that Google is planning to offer a credit card geared toward advertisers using their Adwords system.

This credit card will be a low interest card and will be issued by MasterCard. In addition, the Google credit card will have no annual fee and offer its customers an 8.99% annual percentage rate. However, the down side to this card is that it can only be used for Adwords transactions. Sorry, no rewards, airline miles, or cash back planned just yet. But that would be a good idea.

This seems like a new type of credit card, however about 4 years ago Advanta Corp. offered a very similar card geared toward small business owners. That business credit card was very limited and did last that long. We will see if this catches on.

Google hopes to help small business and medium business ramp up their sales with high-dollar advertising campaigns. This will not be a problem with CPC costs on the rise in Adwords. They feel that most business will reap the benefits around the holidays, usually when there is a lack of funds.

“They are resource-constrained and they are often cash flow-strapped. Many of them are trying to grow a business without the kind of means that, say, your classic company has,” said Claire Johnson, vice president of global online sales at Google.

There is no word on who is going to offer the card but I have my guess. Citibank, Bank of America, and Capital One all run their credit card affiliate program through Google Affiliate Network. Do you think it might be one of them? Each of the banks have affinity relationships, but one of them (Bank of America) more than others. I’m just saying.

The “beta test’ will roll out soon and by invitation only. But before you are quick to jump into another credit line, look at your options.