@Anonymous wrote:
@kdm31091 wrote:
I see both sides. For many consumers who aren't paying in full the 0% is probably better because they will not have to pay any interest. If you are never carrying a balance on the card it doesn't really matter either way, at almost 18% vs 20% you are not going to want to use it to borrow money regardless.
I guess one factor that needs to be considered is how the card is being used. If someone is only using it for 5% categories and is putting (say) $100-$300/mo on the card, a 0% offer doesn't really seem to mean much. I mean, they could rack up a balance of maybe $3k-$5k over the course of a year and then pay it off in one lump sum I suppose. If someone is looking to make a major purchase and plans to carry that balance for an extended period of time, certainly 0% for 12 months makes more sense than letting that balance ride at 17%-20% or whatever.
0% for 12 months is also handy if you want to use the card for a BT, since it would allow you to continue using the card for purchases during a 0% BT promo without accruing interest on the new charges.
This is actually the reason I haven't asked them for an APR reduction, since once you take the reduction you aren't eligible to request a 12 month/0% promo until six months have passed.
I know I'll never carry a balance on the card, but I can imagine a situation where I might need to make an impromptu BT and I like knowing there's a good chance I'll be able to keep using the card for the 5% categories if I do so.
