Termination of credit card account

YorkshireBoy

Supercharge_Me wrote: »

What im suggesting is that £180 is nothing...

Again, £180 is not the important figure. The 12% gross profit is the important figure.

Another example:

Assume I transfer a balance (at 0% for x months) and don't repay it all within the introductory period so I'm left with an interest-bearing balance.

If the APR is 15.9% then that's roughly the provider's profit isn't it...15.9%

Now that's not a million miles away (in percentage terms) from the profit generated by the customer who uses his card each month and settles in full.

However, don't forget they only made a 3% profit from me in the first year (for the BT fee charged).

So, and very simply, the customer who repays in full makes them an average 12% p.a. over two years, and the BT customer makes them an average 9.45% p.a. over the same period.

PBA

YorkshireBoy wrote: »

If the APR is 15.9% then that's roughly the provider's profit isn't it...15.9%

Isn't this what started the whole credit crunch problem? The lender clearly won't be making a 15.9% profit here as they'll be borrowing the money to lend from someone else. But anyways irrelevant as the OP is clearly a troll so this thread should be shut down.