Who wouldn’t want a 0% APR on purchases forever? Being able to avoid interest charges on new purchases every year sounds fantastic. Almost impossible.
For a time, it looked like banks were going in the right direction. Some started offering a 0% APR on purchases for 24 months, but those promotions weren’t around for too long. The risk / reward on those long-lasting promotional offers started tilting too much in the consumer’s favor; and let’s state the obvious: banks are in the business of making money.
So, are we going to see super long-lasting 0% APR offers any time soon? We think there’s hope. Please read on.
Why don’t banks offer a 0% APR on purchases every year?
Banks send out mailers and advertise promotional offers to get customers in the door. Once you’re in and build a balance, their hope is that you’ll remain a loyal cardholder when your promotional offer ends. If you haven’t paid off your balance by then, the credit card company will start earning interest. They also make money from the interchange fee they earn every time you pay with their card.
Because banks are in the business of earning interest, you won’t see a bank offering its existing customers a 0% APR on purchases every year. Or will you?
Someone please do something
Here’s your opportunity to change that.
A Fintech startup reached out to us asking if we’d share a 2 minute quiz with our readers (hence the annoying green buttons throughout this post.) They’re trying to change the way 0% APRs on new purchases are being offered to people. We said yes because, frankly, we’d like to see some change in this space.
Besides, we’re also curious. Is this a real problem? Is not having a 0% APR on purchases every year—with the same credit card company, really a problem that people want to have someone solve? If you think it is, and you’ve taken advantage of 0% APR promotional offers in the past, here’s your opportunity to help.
Just click the button and fill out the short quiz.