Posted on September 1, 2009 - by admin

Why Credit Card Companies offer 0 Percent Interest

You would think that credit card providers want to make money, so why then would they offer you and thousands of other consumers zero percent deals?  There is a very good reason credit card companies offer these products.  The first reason credit card companies offer zero percent interest is to get you to use their products.  They also want you to pay them money every month.  The idea is that once you have paid the debt on the balance transfer you will keep the card and continue to use it.

Balance transfer cards are helpful for those who can use the cards properly.  For example if you pay each month to the credit card company until you pay it off in the allotted zero percent period the card works for you. On the other hand if you do not pay the card off before the deal is up you will pay the typical annual percentage rate, which could be over 15 percent.  This is where the credit card companies make their money.  You can also lose the deal if you miss or make a late payment.  It is also the reason why companies have not completely removed these deals in the credit crunch.