Student Money Management Center

Ask the Experts - 0% APR Credit Cards
Archived

Mon, Feb 13, 2017

Paul Goebel

Director of the Student Money Management Center at University of North Texas

  Why do banks offer 0% credit cards? I believe banks offer 0% credit cards as a way to entice new customers. While customers benefit from using the cards interest-free during a defined introductory period, I would imagine banks are hoping customers will continue to use the cards after the introductory periods end. Continued use will often lead to rollover balances that are then hit by the cards’ regular annual percentage rates, which can easily be in the double digits. ...