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Credit card 0 aprWhile interest rates drop in the lending market, the rate of interest charged by credit card companies doesn't come down. This is not felt by those who pay the outstanding on the due date. However, for those who have to carry forward the balance to the next month, end up paying a much higher rate of interest than on over drafts and other loans. However, credit card holders today are becoming aware of this situation and are re-negotiating terms with their credit card companies. Some credit card companies are now offering Credit cards with zero APR for selected customers. Credit cards with zero APR may be offered to the high end user of credit cards from whom the credit card company will be making more money than on commissions from merchants.
Whether the Credit Card Company provides Credit cards with zero APR facility or not, it is time that pressure is brought on the Credit Card Companies to fluctuate the interest rates in keeping with the money market lending rates at a given time. This will only be fair. Credit cards with zero APR is not something that is freely offered to all credit card holders and understandably all credit card companies cannot do it. But, by fluctuating the interest rates to keep in line with the current market lending rates, it will be feasible to do so by all credit card companies. It will be an acceptable situation to the lender and the borrower.
All banks do vary their interest rates for various loans that are granted. There are situations where some banks charge lesser than market lending rates on preferred customers. If this is possible, Credit cards with zero APR is also possible but again it will be to preferred customers. However, instead of a zero APR Credit card, credit card companies can consider special rates of interest. This can be done for specified periods. But, at the end of that period the card holder will have to pay the exorbitant rate which varies from eighteen percent to thirty six percent.
Some people have tried to point out that the reason for such high interest rates charged by the Credit Card Companies is based on the supply and demand situation. Unlike other loans, the demand for credit cards keeps increasing. This is due to the fact that anyone who has some form of income applies for a credit card. With the increase in population the applications for credit cards also keep increasing. However, the number of Credit Card issuing companies don't increase that much. Therefore, there is more demand for credit cards and thereby Credit cards with zero APR are not given consideration by the credit card companies.
There are no known credit card holders associations, which can act as a body to bring down the interest rate and promote the zero APR credit cards. It will be a worth while exercise if an endeavour is made in this area as it translates into benefiting card holders.
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