Economy & 0% cards... are they safe?

Sarita

It seems we're about to enter a period of very tough times economically, whoever wins the election. Does anyone have an opinion (or has anyone read anything) on whether there's a possible economic scenario looming whereby 0% credit cards are no longer offered?
I'm about to apply for the Virgin (0% BT & purchases) and don't want to be caught short when it expires in 12 months.

no_more_cards_for_me

Unlikely that 0% cards will be ditched for BT. Far too profitable when customers miss payments, don't set up DD or meet with the T&C's. The vast majority of people on 0% aren't stoozers so there is the potential at the end of a promotional period for them to convert to standard rates. 0% BT is a mechanism to boost customer numbers.

0% on purchases is more likely to see the period reduced, but again they act as a mechanism for recruiting new customers.

Unfortunately none of has a crystal ball to see what will happen in the next few months but attracting customers (who provide fee opportunities) will remain a high priority for all cc providers. It might be more difficult in 12 months time but really its impossible to say.

CannyJock

Sarita wrote: »

Does anyone have an opinion (or has anyone read anything) on whether there's a possible economic scenario looming whereby 0% credit cards are no longer offered?

Exactly the opposite as the economy continues to recover.

Infact, we'll see more new players enter the market http://www.guardian.co.uk/money/2010/may/02/clydesdale-yorkshire-banks-credit-cards?