CardIt
CardIt is an online payment system for monthly mortgage bills using a major credit card. Philip Mikal and Alex Zada were co-founders. CardIt is a California limited liability corporation with headquarters in San Francisco. It was founded in 2006 and has partnered with major technology and financial services companies.
CardIt was the second to publically announce their credit card mortgage payment service. Cardit.com launched September 7th, 2007. The first was American Express' Express Rewards Mortgage Program, which was announced in May of 2007. There are differences in each program, most notably the service fee. American Express charges an enrollment fee of $400 for one year. CardIt charges 2.49% + $19.99 per transaction.
Criticism
Consumer watchdog groups such as American Consumer Credit Education Support Services argue that while Cardit's services may give some people added flexibility when making their mortgage payments, the service is just as likely to get many panicked consumers even deeper in debt, especially given the 2007 Subprime mortgage financial crisis.
See also
- United States housing bubble
- 2007 Subprime mortgage financial crisis