I had never heard of this idea until I saw it in an article online. Apparently some credit card companies require people to keep a certain amount of money in their outstanding balance otherwise they're penalized. Here is a blurb from that article I was reading:

After incuring this debt, you have to maintain a balance of at least $3500 for 18 months! If at any time your account balance during those first 18 months drops below that $3500 limit, you will be considered in default and will have the opportunity to experience all of the joys that come with being in default. Including a $600 one time charge, termed an “early pay down” fee. Fun times. But, hey, at least there’s no annual fee.

Credit Cards: A new bag of tricks… on InvestorGeeks

Has anyone else ever heard of this? I don't know why in the world someone would sign up for a card with these features!

Bloody hell!! I hope the benefits of having the card are pretty serious - surely there are plenty enough cards around that allow you to simply pay off everything monthly without fees? As the writer points out, all that fuss just to get a $950 laptop just doesn't entice.

When i signed up for a credit card a while back they asked me to keep £250 on the card at all times1
I was like no way I want a credit card to spent the cash not save it!

Run logan, run!!!!!

It sounds like a HUGE scam if they are making you carry a balance. With all the cards available out there today, shop around. Find one that doesn't carry penalties for paying what you owe.

Looks like yet another money making scheme for the CC industry to use to prey on the desperate and/or ignorant.

It looks like a scheme to me as well. I have seen those in the mail too. I ignore them and shred them.

It sounds a little fishy too me. I hope that there a lot of people out there that would fall for this.You would hva to want a credit card really bad to go for this. It sounds like a scam to me.