Credit Cards

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Sunday, November 01, 2009

Will 0% Credit Cards Make a Comeback?

0% Credit CardsNo one can predict the future, but if our economic recovery continues on its current course, we most likely can expect 0% credit card deals to stage a comeback.

The Past
When our economy hit its low point in 2008, zero percent offers for balance transfers virtually disappeared from the market. Just months before that, there were a plethora of interest-free offers available, many of them being for 12 to 15 months. As our country’s financial health deteriorated, almost every bank terminated these incredible offers. Instead, they were replaced with promotional rates only valid for three to six months.

The Future
Today, we are seeing positive signs that this trend is now reversing. During the third quarter of this year, issuers like Discover gradually began to sweeten their promotional offers. More and more credit card deals for longer promotional periods have been popping up across the net. Unfortunately some issuers, like American Express and Bank of America, have been slower to follow suit.

Assuming we continue on the road to recovery, these incentives should continue to become more common. Initially, they will probably only be made available to those with average to above-average credit. Once unemployment and foreclosures begin to ease up, banks may extend these offers to those with below-average credit, too.

As the percentage of bad debt goes down, lower interest rates on credit cards should follow. However, it’s important to note that most have APRs which are now linked to the prime rate; if that were to increase significantly, then rates may go up.

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Blogger Unknown said...

Great post

In this day and age struggling to sustain a stable job and still making end meet and providing food on the table for your family is a major issue especially in this economy, you have to save as much money as you can as often as you can. I just recently shipped one of my automobiles overseas and used Auto Shipping Network and saved a boat load, check them out at

Friday, March 26, 2010 4:39:00 PM  
Anonymous blackMARKER1 said...

I think there is a great chance that 0% credit cards will make a comeback. Credit card companies realize the tough situation that many American families are in, so giving low APR offers will only make Americans strongly consider the credit card companies offers.

Saturday, August 07, 2010 6:00:00 PM  
Anonymous Anonymous said...

Why don't the hedge fund or superloan funds go smart and offer a credit card with no or low finance rate to people with the same bad credit as are getting reverse mortgages? Zero percent is only given for balances and first year spending if if and only if you have the money to not need the card in the first place. Imagine the brad loyalty to a card funding superfund that gave credit cards to even minimum payers...

Friday, September 17, 2010 7:47:00 PM  

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