INFO: Skynews - 0%BT's to end soon

Tony_H_3

Click Here to read the skynews story about 0% BT cards ending soon.

Mr_B_13

The Mail on Sunday said something similar today - possibly a press release from the website (moneysupermarket.com) referred to trying to drum up business for the website and therefore encouraging people to apply now (possibly following through their referral links while at the website, or am I being a cynic?)?

This story has been circulating for a while on this discussion board and TMF but new offers keep coming out. Only time will tell when the offers dry up and we all have to pay back our stooze ... .

Mr B

deemy2004

There allways be one upmanship so saying and doing is not the same.

Already many of the 'fee chargers' don't charge on the first balance transfer for new customers.

Tony_H_3

There allways be one upmanship so saying and doing is not the same.

Already many of the 'fee chargers' don't charge on the first balance transfer for new customers.

I don't do this, but just thought I would share the news. If I remember correctly Martin setup a payment system for barclay card at one point, in order to allow card holders to receive continues 0%.

No doubt you will all keep abreast of the changing rules & loop holes, it's better to be prepared and all that ;D

Martinslovechild

As long as credit limits are high (£10K+), a £50 fee won't be enough to deter me, given that I could still make a lot more than this amount in interest saved on my mortgage.

Reaper

The Sunday Times ran the same story, also quoting moneysupermarket. Remember though that moneysupermarket don't know anything we don't. They just told the papers what we can all see - some credit cards have introduced a BT fee. We don't know if more will introduce it or whether the others will decide to stay free to give them a competitive advantage. Time will tell.

realaledrinker

The banks are obsessed with their balance sheet strength just as much as margin. They meed us just as much - if not more so - than we need them. Whilst competition is so cut throat, I just don't see an end to 0% deals as the banks concerned would say goodbye to a large chunk of their balances.

At the end of the day, all these reports have been generated primarily as a result of MBNA and Mint introducing BT fees. But as they were two of only three routes for SBT stoozers, I suspect they have done this to make a bit of money from stoozers, whilst still making it worth our while to continue transferring.

Approx 35% of people who BT do not pay off their balance at the end of the 6 months or whatever and overall it must still be a profitable marketing strategy for the banks or else they would be withdrawing the offers in droves.

Walletwatch

The banks are obsessed with their balance sheet strength just as much as margin.  They meed us just as much - if not more so - than we need them.  Whilst competition is so cut throat, I just don't see an end to 0% deals as the banks concerned would say goodbye to a large chunk of their balances.

At the end of the day, all these reports have been generated primarily as a result of  MBNA and Mint introducing BT fees.  But as they were two of only three routes for SBT stoozers, I suspect they have done this to make a bit of money from stoozers, whilst still making it worth our while to continue transferring.

Approx 35% of people who BT do not pay off their balance at the end of the 6 months or whatever and overall it must still be a profitable marketing strategy for the banks or else they would be withdrawing the offers in droves.

I disagree with the first statement you make - Banks are no longer concerned about the size of their balance sheet, it is all about thier profitability, and more importantly, the Return on Capital. For this reason, it doesn't make sense for Banks to continue with 0% deals.

I do agree however, that Banks can simply not afford to take a decision to stop offering zero per cent deals. I think this will need to be a collective decision taken by the industry as a whole, as even a couple of ambitious players persisting with such deals would necessitate all other banks to continue offering them.

I also agree that the route Mint have come up with (levying charges on BTs done in the first three months of a nine month period, and doing BTs charge-free for the rest of the period) is a good middle-of-the-road way to limit / compensate for the interest cost they incur when they offer such deals. Other things that might follow are limitations on the amounts that can be BTed, irrespective of the credit limit, etc.

smartsaver

It seems to me to be alot of scare mongering. I would be surprised if the deals dry up, although I am sure more and more will charge to do BT's. As said before on this thread, this will not put off many if the credit limit is high enough.

This kind of story has been run before and still the offers keep coming...

Lopo

More than likely, I can imagine the card providers will simply say no to large transfers in the future plus add on fees anyway if a BT is permitted.....simply if they suspect a stoozer.

Not being funny, but are we not giving away too much info/ideas here!! !

Sure someone from the cc providers read up on these sites also,....and has all these wonderfull whizz-bang ideas courtesy of the discussions here when they go to their next brain-storming anti-stoozer meetings!!

weatherwax_2

More than likely, I can imagine the card providers will simply say no to large transfers in the future plus add on fees anyway if a BT is permitted.....simply if they suspect a stoozer.

Not being funny, but are we not giving away too much info/ideas here!! !

Sure someone from the cc providers read up on these sites also,....and has all these wonderfull whizz-bang ideas courtesy of the discussions here when they go to their next brain-storming anti-stoozer meetings!!

A damn good point! :-X