New 'Card Tarts' article

cafenervosa_2

Just came across this in the money news and thought you guys might be interested in reading it.

http://www.thisismoney.com/20041018/nm83620.html

Robert_Sterling_3

If credit card debt were unenforceable things would change.

goolieman

Just reading this article on the front of the Daily Mail now!
The usual sensationalist headline:
£20,000 CREDIT CARD 'BRIBES'

C

Reaper

Is it just me or does this paragraph make no sense?

With hundreds of cards on the market, many people have switched around to take advantage of initial low interest rates. They have become known as 'card tarts'. By offering the interest-free cash, credit card firms hope to curb this trend.

How is that going to curb the trend?

Smitty

I have just read this article in the Mail in my lunch hour... (while still hunting for Capital One 18 month application forms).

That sentence made no sense to me either Reaper ???

deemy2004

Is it just me or does this paragraph make no sense?


How is that going to curb the trend?

I think they have got their stops and commas in the wrong place -

With hundreds of cards on the market, many people have switched around to take advantage of initial low interest rates. They have become known as 'card tarts', by offering the interest-free cash. Credit card firms hope to curb this trend.

goolieman

I thought it meant that by offering large interest free sums they would be deterring people switching the money from card to card. Probably because they would have trouble finding a card to match the credit limit. Or they presume the 'cash' would be used to pay off the other cards (not to sit in a high interest account) and therefore be left with that one and only debt.
I don't think the article truely understands a the meaning of 'tart'
JMO
C

Galstonian

IMHO it is simply a sloppy sensationalistic article. What connection is there between 0% deals and the three named individuals in the article?

I already posted on the Fool about this.

Tr@cker

In the broader sense though something has to give. There's a record number of personal bankruptcy-twice the national average here in North Staffs and a lot of it bought on by easy credit, especially plastic credit.
Some regulation is imminent so get your 0% deals-the one's with no transfer charge in now.

deemy2004

A transfer in charge is okay as long as the credit limit is high

for example £50 MBNA charge set against 9k for 9 months interest at say 4.9% =£331. less £50 charge = £281 Still a healthy profit.

deemy2004

I thought it meant that by offering large interest free sums they would be deterring people switching the money from card to card.
JMO
C

After actually reading the article, yes your correct its to prevent existing customers from transfering away.

The good thing about the article is that they list all the ones offering the balance transfers  :P

I wish I was getting these offers through the post !  ;D

They need to do an article to mention how x,y,z person has made several thousand pounds a year, as this is article is so gloom and doom mentioning deaths as though its going to become an epidemic