0% is catching on…….

Don’t you think it is a gimmick.

Only for 6 months and then reverts back to what most cards offer.

Byronent
Adelaide SA

Made me look tooshocked2]
Yeah, a gimmick maybe, but also a great tool for those in the community who have maxed out 2 or 3 or more Credit Cards, and are looking for a way to seriously reduce the outstanding balance in a hurry. Will probably be a very popular product given the amount of personal debt in Aust.[confused2]

Sharon

I have just moved from the UK, where 0% for 6-9 month c/c deals have been common for a few years. Yes they are great for people with large c/c debt, but plenty of diligent people are getting them, and using the cash to either pay down their home loans, or even just putting it in the bank to gain the interest. I know of people who have up to GBP40-50k on their 0% cards, so are making a couple of grand a year in interest.

The UK is much more free and easy about approving credit cards mind you.

And you must be VERY careful to pay off the card before the 6 month deal runs out, otherwise you revert back to the high interest rate and lose all profit.

It works like this:

Get card A – interest rate as low as poss.
Cash advance to the limit.

Get card B, which is a 0% deal, balance transfer the $10k from Card A to Card B. Close Card A.

A few weeks before the 6 month period is up, apply for Card C, which also has a 0% deal. Balance transfer the $10k from Card B to Card C.

It might not be huge amounts of profit, but it also doesn’t take much effort, just vigilance.

The credit card discussion board on http://www.fool.co.uk often has threads on this topic.

HC