MSE News: 0% credit card deals could change forever, for the worse

edited 30 November 2011 at 11:41AM in Credit Cards
17 replies 2.7K views
Former_MSE_HelenFormer_MSE_Helen Former MSE
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edited 30 November 2011 at 11:41AM in Credit Cards
This is the discussion thread for the following MSE News Story:

"Halifax has launched a top credit card, but the offer isn't open to all successful applicants. A sign of things to come? ..."
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  • AnonAnon Forumite
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    A bigger scam is that credit card companies can advertise 0% yet charge a fee of around 3% :mad:. This approach and low interest rates have now made it very difficult to profit from stoozing ... :o

    Anon
  • the sooner they get rid of 0% deals the better,then the rest of us might end up paying a lower apr instead of subsidising the rate tarts
  • poppy10_2poppy10_2 Forumite
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    0% credit card deals could change forever, for the worst

    for the worse
    poppy10
  • corbyboycorbyboy Forumite
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    But doesn't this mean that people who might previously have been rejected for the card will now be accepted, just with a shorter 0% period?
  • A_Flock_Of_SheepA_Flock_Of_Sheep Forumite
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    They should dump all 0% deals period.

    In fact ALL credit cards should be abolished and outlawed full stop. This would enable the pupulus to get back to basics; saving up for what people need and also making people distinguish between what they "want" and what they "need". Also changing legislation so that the protection on credit cards is transferred to debit cards so credit card protection need not be a reason to banish them to room 101.
  • chattychappychattychappy Forumite
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    woodbine wrote: »
    the sooner they get rid of 0% deals the better,then the rest of us might end up paying a lower apr instead of subsidising the rate tarts

    Bizarre analysis.
  • pqrdefpqrdef Forumite
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    "Cast-iron certainty"? A poster said on another thread only this week that Barclaycard had accepted his application for a 0% BT card, but taken off the 0% BT offer.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • pqrdefpqrdef Forumite
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    woodbine wrote: »
    the sooner they get rid of 0% deals the better,then the rest of us might end up paying a lower apr instead of subsidising the rate tarts
    The banks make a lot of profit out of 0% deals. Why else do you think they do them? They don't cross-subsidise them, so without 0% deals the rest of us might end up paying more, not less.
    "It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis
  • A_Flock_Of_SheepA_Flock_Of_Sheep Forumite
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    It's a load of baloney the 0% "deals".

    Yes it is 0% but you pay a "handling fee" to transfer a balance. What a fraud!!!

    Since when did it cost £30 to transfer £1,000 from one place to another? Even by cheque it does not cost that much.

    And why does it cost more to transfer £1,000 than £100? Do the extra electronic figures weigh more or something?

    The only time these are not stupid is when it is 0% on purchases.
  • edited 30 November 2011 at 12:40PM
    nohnoh Forumite
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    edited 30 November 2011 at 12:40PM
    ...................

    The only time these are not stupid is when it is 0% on purchases.

    No.
    They make sense when there is no cheaper source of funds.
    For example 20 months at 0% with a 3% handling fee is cheaper than using money currently saved at 3.25% AER for a basic rate taxpayer.
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