0 APR MasterCard nothing new for Low APR Credit Card Customers
These low APR cards have been available for some time and are growing in popularity
0 APR MasterCard is a type of low interest card which this issuer offers as an introductory rate to new applicants. These types of offers are not new. They have been around for some time now, but it was less than fifteen years that the credit card market had very limited choice where the bank determined the interest rate usually around 18%. Top that off with a $20 annual fee just for becoming a customer. Thing sure have changed today. It is most unusual these days to find any finance company that eagerly wants your business by luring you with all kinds of credit card perks including 0 APR for the first 6 to 12 months of signing up for the card.
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MasterCard, Visa, Citbank, Chase and others offer these type of cards with offers of a 0% APR on credit card purchases. This often applies to balance transfers for up to a period of at least one year. The credit market has now come to take these “promo” rates for granted. Many now actually shop for 0% credit cards and are aggressively sought out by card issuers.
Low APR promotional rates first appeared with the concept of the monoline bank - that only issued credit cards not deposits or loans.. This new type of credit card bank came to be in the late 80’s. They took full advantage of the new consumer credit databases to target customers with offers based on different risk profiles.
The 1980’s also saw the growth of mass direct mail campaigns. These tools were very effective to solicit millions of customers to apply for credit cards at one time all across the USA. Once these low interest rate promos were out in the mass market it was impossible to stop. So even if this tactic was to be a one time deal, it actually became a permanent approach and one that has been part of the cost of business for most credit card banks ever since These rates now appeal mostly to those people who can manage their credit by revolving their balance each month. The big appeal for most is that this type of card does offer some room to move and plan if you are under credit pressure and need short term financial freedom
Unlike short trends in other industries, these promotional 0 APR MasterCard offers will be with us for some time to come. We are smart consumers is a market that continues to find ways of attracting our credit business. However, it should not be taken for granted that these low apr rates will last forever. Just remember the bank and their methods less than 15 years ago. In this business, change is for certain.