Card issuers aim at prime borrowers for 0% apr cards

Tuesday, October 12th, 2010

Ever since the delinquency rates dropped by over 26%, card issuers are having a field day and promoting their 0% offers to prime borrowers. Any individual with a credit score of over 720 is flooded with mail from card companies. Balance transfers have a longer grace period of about 21 months and 0% APR`s on fresh purchases.

Based on a study done by Synovate Mial Monitor, around 71% of the mail from card companies offer low APR`s (introductory offer on new purchases) and increase in balance transfers mail to about 65%.

As recently as last year, individuals with low-zero balances were turned down by card companies as they offered lesser profits to companies because of their frugal ways. Now, the very same companies are hoping that these credit-worthy spenders will continue with the spending as well as carry forward a balance well after the introductory period, says chief executive, Odysseas Papadimitriou.

Some highlights and features:

• The introductory balance transfer offers will last up to 21 months as compared to 12 months in the previous year. Card holders with a credit score of around 720 or more can have an option of 12 balance transfers at 0% interest for a year.

• The balance transfer fees are between 3% and 5% and this is quite high (which in turn reduces a major chunk in savings). Visa Black Card has annual fees of $495 with a balance transfer fee being capped at $50.

• By the end of the promotional period the rates would have averaged to around 15%, which could be very high for prime spenders who were used to being charged around 10%. So, by paying off the whole balance before the end of the promotional period, one can save on the interest rates. If not, one would end up paying much more than the prevailing rate.

As it is a well-known fact that APR`s could be hiked after a formal notification via mail. Although, the new rates will not be applicable to the balance that already exists, it will be applicable to new purchases made after 14 days of the notification.

• Earlier the penalty APR was at 24% for a single payment that was missed. However, with the current 0% credit cards, the card holder gets a long grace period of about 60 days. This would be a very convenient deal for people who tend to forget timely payments and end up paying the penalty APR.

Latest Low APR Credit Card News

Tuesday, July 19th, 2016
The prize for Army Credit Union of the Year goes to PenFed Credit Union this year, as the PenFed branch in Fort Hood, Texas is recognized for distinguished service at the Defense ...
Saturday, February 20th, 2016
As 2016 picks up steam and rolls into February and then March, it can no longer really be called a new year. Still, it’s early in the year, and there are surely many surprises ...
Tuesday, January 20th, 2015
Understanding how credit card interest is calculated is important if you want to be more educated and use your credit card more effectively. Here we’ll explain how most credit ...
Tuesday, March 5th, 2013
While MasterCard announcing MasterPass, a digital service that lets cardholders pay with most mobile devices, and Visa and Samsung are announcing a global alliance to accelerate ...
Friday, November 23rd, 2012
Flint Mobile Inc. introduced its new iPhone app that allows retailers to accept credit card payments by just scanning the card number.
Best Credit Offer
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 All Rights Reserved.

* The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.