Use a credit card and win the lottery! This may seem highly unusual, but that’s exactly what the American DreamCard offers to people with good credit. The card offers a sweepstakes program for its cardmembers that actually has monthly drawings for cardholders to win cash. Because this is such an unusual rewards structure, it has has created some skeptics and led some to ask whether the American DreamCard is a scam.

As it turns out, the card is issued by HSBC. Described as a pooled rewards credit card, it’s actually the real deal. In fact, as you’ll see below, the American DreamCard has won awards for its innovation.

Pooled Rewards
The American DreamCard Platinum MasterCard offers what is called a pooled reward program. Each month, one lucky winner receives .5% of the net dollars spent on the card during the preceeding month. Here are the details:

One winner will receive .50% of the total amount of net dollars spent on purchases by the participating American DreamCard™ cardholders during the corresponding drawing period. In the instance of multiple authorized users of the selected credit card account, the winner is the primary cardholder. The maximum amount to be awarded for each drawing is $50,000. Odds of winning depend on the cumulative number of eligible entries received from all combined methods of entry by each deadline date.

Odds of winning depend on the cumulative number of eligible entries received from all combined methods of entry by each deadline date. The maximum monthly prize is expected to vary between $30,000 and $100,000.

So how do you enter the drawing each month? The Amercian DreamCard offers several ways to enter:

1. You will earn one entry for each net dollar spent (on merchandise, cash advances and/or balance transfers only), up to a maximum of $1,000 per transaction with your American DreamCard™ MasterCard® during the Promotion Period.
2. You will earn 1,000 entries by submitting a completed American DreamCard™ MasterCard® credit card application via the Internet at www.americandreamcard.com.
3. You will earn 1,000 entries by completing an American DreamCard™ MasterCard® credit card application over the phone (877-711-7190)
4. You will earn 1,000 entries by mailing a completed American DreamCard™ credit card application. Limit one application entry per person irrespective of method of application.
5. You will earn 100 entries by enrolling in AccountCentral®, the online account servicing platform accessible through www.americandreamcard.com. Limit one enrollment entry per person/email address on AccountCentral.
6. You will earn 100 entries each time you pay your American DreamCard™ bill online Limit 3 bill pay entries per person/email address/month.
7. You will earn entries by referring friends who meet the sweepstakes eligibility requirements. You will receive 50 entries into the sweepstakes through each referral submitted, plus an additional 1,000 entries as a signing bonus for each referral that applies and is approved for the American DreamCard™ MasterCard®. Your friend will be sent an email asking him/her to apply for the American DreamCard™ MasterCard®. For each friend that subsequently completes and submits an American DreamCard™ MasterCard® credit card application and is approved, you will receive 1,000 entries into the sweepstakes.
8. You may have the opportunity to earn bonus entries in selected months during the Promotion Period. Check the American DreamCard™ website for updates on selected bonus entry methods and the months in which the bonus entries will be applicable. Your total number of entries earned for each drawing will be carried forward for all subsequent drawings (if any) during the Promotion Period.

Awards
The American DreamCard has won several awards for innovation. In 2005, CardTrak awarded the card as the most innovative of 2004. Here’s what CardTrak had to say:

A new MasterCard was introduced in August that gives cardholders a chance to win a monthly cash jackpot of at least $25,000, every time they spend $1 on purchases. The new “American DreamCard Platinum MasterCard” awards one sweepstakes entry for every net $1.00 spent on the card, up to 1,000 entries per a $1,000 transaction. Consumers also receive 1,000 entries for applying during the promotional period which ends September 30th. If approved, cardholders will also earn 100 entries by enrolling in the online account servicing platform, and one hundred entries each time they pay their “American DreamCard” bill online. Monthly winners will receive 0.50% of the total amount of net dollars spent by the cumulative number of cardholders on their “American DreamCards” during each drawing period. The maximum monthly prize is expected to vary between $30,000 and $100,000. Metris/Direct Merchants Credit Card Bank is the issuer. For more information visit: www.americandreamcard.com.

In 2006, American DreamCard was recognized as a finalist by The OSCARDS, a prestigious international award for innovation in the loyalty – rewards category.

Introductory Rates & Offers
The card does not offer any special introductory rate. Your APRs may vary based on changes to the prime rate. The rates are determined monthly by adding the prime rate to the APR you are approved for based on your credit history. The APR for purchases is between 11.74% – 18.74% plus the prime rate. For cash advances the rate goes up to 19.74% – 25.74% plus the prime rate.

For each billing cycle, the Index is determined in the calendar month prior to the calendar month in which the billing cycle ends. In that prior calendar month, the highest (U.S.) “Prime Rate” published in the Money Rates table of The Wall Street Journal is selected (the “Index”). If the Index has changed, the new variable rate will take effect as of the first day of the first billing cycle that ends on or after the first day of the calendar month following the Index change.

Rates & Fees

• Annual Fee: $0, $39 or $59
• Minimum Finance Charge: $1.00 for each billing cycle in which a periodic Finance Charge is payable
• Transaction Fee for Cash Advances: $5 for each cash advance of $100 or less from any Automated Teller Machine (ATM), or convenience check; for all other cash advances transactions, $15 or 4%, whichever is higher.
• Transaction Fee for Cash Express: $29 for each transaction.
• Late Payment Fee: $39
• Over Limit Fee: $39
• Foreign Transaction Fee: 3% of the U.S. Dollar equivalent amount of each transaction made in a foreign currency