Jim Rankin of The Toronto Star wanted to find out what panhandlers would do with a credit card, so he handed out pre-paid cards of $50 and $75.

What would happen if, instead of spare change, you handed a person in need the means to shop for whatever they needed? What would they buy? Can you spare your credit card, sir?

In New York City, an advertising executive recently handed over her American Express Platinum Card to a homeless Manhattan man after he had asked her for change. The man, who had been without home after losing a job, used the card to buy $25 worth of deodorant, water and cigarettes. And then he returned the card.

Most used it buy food and liquor.

Mint.com explains how some companies prey on the poor.

On secured credit cards:

Basically, you assume all the risks and are charged fees for doing so.  Or to put it another way: you lend money to yourself, and if you don’t pay yourself back, you get charged a fee by some company in Delaware.