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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 29th Nov 11, 4:28 PM
    • 2,324Posts
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    Former MSE Helen
    MSE News: 0% credit card deals could change forever, for the worse
    • #1
    • 29th Nov 11, 4:28 PM
    MSE News: 0% credit card deals could change forever, for the worse 29th Nov 11 at 4:28 PM
    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? ..."

    Last edited by MSE Guy; 30-11-2011 at 9:41 AM.
Page 1
    • Anon
    • By Anon 29th Nov 11, 5:38 PM
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    Anon
    • #2
    • 29th Nov 11, 5:38 PM
    • #2
    • 29th Nov 11, 5:38 PM
    A bigger scam is that credit card companies can advertise 0% yet charge a fee of around 3% . This approach and low interest rates have now made it very difficult to profit from stoozing ...

    Anon
    • woodbine
    • By woodbine 29th Nov 11, 5:39 PM
    • 18,323 Posts
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    woodbine
    • #3
    • 29th Nov 11, 5:39 PM
    • #3
    • 29th Nov 11, 5:39 PM
    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
    • By poppy10 29th Nov 11, 6:37 PM
    • 6,164 Posts
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    poppy10
    • #4
    • 29th Nov 11, 6:37 PM
    • #4
    • 29th Nov 11, 6:37 PM
    0% credit card deals could change forever, for the worst
    for the worse
    • corbyboy
    • By corbyboy 29th Nov 11, 8:38 PM
    • 1,137 Posts
    • 1,378 Thanks
    corbyboy
    • #5
    • 29th Nov 11, 8:38 PM
    • #5
    • 29th Nov 11, 8:38 PM
    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 Sheep
    • By A Flock Of Sheep 29th Nov 11, 11:26 PM
    • 5,047 Posts
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    A Flock Of Sheep
    • #6
    • 29th Nov 11, 11:26 PM
    • #6
    • 29th Nov 11, 11:26 PM
    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.
    • chattychappy
    • By chattychappy 30th Nov 11, 12:06 AM
    • 7,082 Posts
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    chattychappy
    • #7
    • 30th Nov 11, 12:06 AM
    • #7
    • 30th Nov 11, 12:06 AM
    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
    Originally posted by woodbine
    Bizarre analysis.
  • pqrdef
    • #8
    • 30th Nov 11, 12:16 AM
    • #8
    • 30th Nov 11, 12:16 AM
    "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.
  • pqrdef
    • #9
    • 30th Nov 11, 12:21 AM
    • #9
    • 30th Nov 11, 12:21 AM
    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
    Originally posted by woodbine
    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.
    • A Flock Of Sheep
    • By A Flock Of Sheep 30th Nov 11, 7:02 AM
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    A Flock Of Sheep
    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.
    • noh
    • By noh 30th Nov 11, 7:43 AM
    • 5,315 Posts
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    noh
    ...................

    The only time these are not stupid is when it is 0% on purchases.
    Originally posted by A Flock Of Sheep
    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.
    Last edited by noh; 30-11-2011 at 10:40 AM.
    • Fruit and Nut Case
    • By Fruit and Nut Case 30th Nov 11, 7:47 AM
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    Fruit and Nut Case
    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.
    Originally posted by A Flock Of Sheep
    I think the banks do this to discourage stoozing. At the current typical rates of interest on savings it is barely profitable.
    Are you for real? - Glass Half Empty??
    • alexanderalexander
    • By alexanderalexander 30th Nov 11, 8:40 AM
    • 293 Posts
    • 160 Thanks
    alexanderalexander
    There is some odd reasoning going on in this thread.

    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
    Originally posted by woodbine


    0% deals must make profit for the CC companies, or else they wouldn't offer them. If they were loss-making, they would be cut. The savvy rate tarts and stoozers do not constitute everyone there are plenty of people who get into real debt on 0% deals and stay on the same card when it jumps to 20%interest.

    It's a load of baloney the 0% "deals".
    Originally posted by A Flock Of Sheep

    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.
    Originally posted by A Flock Of Sheep


    Referring to it as a handling fee is a arguably a misdescription, but even with the fee it is so much cheaper than almost any other form of loan. And the credit card companies are very up-front about the fee they charge. The best balance transfer deals still offer exceptionally cheap credit, so I really don't think you can call them a 'fraud'.
    • JimmyTheWig
    • By JimmyTheWig 30th Nov 11, 12:42 PM
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    JimmyTheWig
    Yet I suspect this means the 0% deal is about to change forever as this could sweep across the card landscape, so every time consumers will need to check their likelihood of getting the promo deal before applying
    I'm not convinced this is such a big change, certainly not such a big change for the worse.
    Since the credit crunch started, reports on these forums have been that getting accepted for 0% deals has been harder and harder.

    Does this change not mean, then, that they will now be able to accept about twice as many applicants as previously? That the people they previously would have accepted will still be given the advertised period and a similar number of "the best of the rest" will now be accepted but given not such a good deal.
    It sounds like the "not such a good deal" is still a good deal, especially for someone who otherwise wouldn't get a 0% deal in the first place.
    • chattychappy
    • By chattychappy 30th Nov 11, 9:02 PM
    • 7,082 Posts
    • 3,918 Thanks
    chattychappy
    I think people shifting debt around should consider LOB deals if they can get them. They might cost more in the short term, but it does eliminate the risk of not getting a new 0% deal. I agree, there do seem to be fewer of them around.
    • davidgmmafan
    • By davidgmmafan 30th Nov 11, 10:55 PM
    • 1,446 Posts
    • 522 Thanks
    davidgmmafan
    Slightly off topic as it relates mainly to loans but I think this 'new' rule is madness. Previously with loans you had to give the rate advertised to 2 out of 3 customers, now its just 51%. I don't want to turn this into some anti EU rant but I can't really see the point of having such regulations where they replace a BETTER regulation...

    Back on topic this does seem to make the issue of searches impacting on your ability to get credit more of an issue. You don't know if you will be accepted, or indeed what you will be offered, until you apply and yet if you apply to several different companies some will take this as a sign you are bad risk.

    I expect we'll see an article in a while saying they're having a rethink as there are too many people with spotless credit histories with 0% offers so the banks aren't making any money out of them.
    Mixed Martial Arts is the greatest sport known to mankind and anyone who says it is 'a bar room brawl' has never trained in it and has no idea what they are talking about.
    • Superheavy
    • By Superheavy 30th Nov 11, 11:04 PM
    • 461 Posts
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    Superheavy
    I don't see this as being that big a change, it will just see a lot more cases of people opening a card and then closing it shortly afterwards when they realise that they haven't been granted the balance transfer.
    DFW - DEBT FREEEEEE!

    Total - 10762/10762

    Every silver lining has its cloud.
    • JimmyTheWig
    • By JimmyTheWig 1st Dec 11, 8:23 AM
    • 11,848 Posts
    • 11,390 Thanks
    JimmyTheWig
    Back on topic this does seem to make the issue of searches impacting on your ability to get credit more of an issue. You don't know if you will be accepted, or indeed what you will be offered, until you apply and yet if you apply to several different companies some will take this as a sign you are bad risk.
    Originally posted by davidgmmafan
    But that hasn't changed with this new offer. The only change as far as I can see is that where previously you would have been declined, now you may be accepted on a not quite as good deal.
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