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Credit card with zero interest... Really?!, page-9

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Haywan88

1,483 Posts.

262

10/02/21

23:39

Post #: 50878780
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Originally posted by ElmerFudd: ↑

nlagos!!

Totally, you are right.
you could just get a zero fee interest card with 55 day terms and so long as pay off within 55 days no probs. But here's some things to consider;

1. Do any of those actually exist? Generally min fee for credit cards is 69 a year for 55 day interest and that's a bare bones basic cc.
2. The zero interest credit cards like Nab and others have released doesn't charge you interest but will.charge you a monthly fee based on the credit limit you get! And looking at the nab zero interest card it's ridiculously high rates and consumers see that straight away
3. Gen zers the under 30 hate banks more so than older generation. Why? They have seen their parents locked into debt and are more savvy and choosing to not get a credit card and choose bnpl. Stats are there to support this is the strongest cohort of users on bnpl platforms.
4. What added leads or business are banks with these zero interest cards giving the merchant? Bnpl has at least 3 beneficiaries. First Afterpay benefits. Second the consumer benefits 3 fold by paying less interest than a traditional credit card, can buy something now and have it and pay it off, smooth out payments to match income streams, and thirdly merchants benefit; consumers see the merchant brands and see the sales see the advertised specials. What banks are showing the latest deal you can get at merchant X on their banking platform? None is how many. So merchants get increased total sales value (consumers buy more when using bnpl over credit cards) and increased lead gen meaning more sale conversions from these leads.

5. Ease of use. I can use zip tap and zip to buy anything online or in-store. Any merchant. Afterpay you can't yet but watch this space they will eventually offer this as they see zips growth in this area and play catch up on app features avail.
But ease of application process too. It's a nightmare getting a credit card. Banks asking you to mail in your salary payslips references etc. Using old outdated online app forms and then some monkey calls you back and trys offering you a different product to what you actually applied for! Bnpl it's 5 min. Download app and go. Even zip that does a credit check is less than 10 min until you're ready to buy something. Credit cards can be a month before you get a physical card in the mail.

6. Having to physically have a credit card vs an app. More convenient with an app. I don't even carry my wallet around anymore just my phone.

6. Credit card fraud. Card present and card not present fraud. Bnpl fraud levels are one fifth the levels of credit cards. Using things like one time credit cards that zip offer apt don't, means you use the credit card number once then it's redundant. A physical credit card can be compromised for years.

6. It's new and exciting. The mobile app appeals to tech savvy. Physical credit cards are an older generation thing. Like when Facebook came out people jumped on it
bnpp is like that it's a new cool thing and everyone is starting to do it. Credit cards are seen as old legacy.
Like software and physical hardware in it. Now everyone is moving to Cloud. It's not always cheaper but everyone is doing it.
7. Royal.commission. people hate the banks now. But that's their fault for screwing us and the royal Commission exposed that. All the gen shave seen this and will remember it. Certainly doesn't help when the bank trys to force another credit card increase down your throat on a cold call.

The big ahah moment for me was shutting down my mortgage, shutting down the 400 a year credit card attached to the mortgage and going looking for a low limit card for 1500. I couldn't find one. Most min balances ask for 3 K min. Any QFF card, the good ones you need to have a min 15 K balance. I'd spoken to my mortgage brokers and they told me turning of my credit cards significantly increased my borrowing power. I saw Zip and Afterpay tried them both preferred zip and got a 1000 limit that went to 1500 after a few months. I can use zip anywhere so it's a true alternative payment to credit cards. I couldn't use Afterpay everywhere ,only in certain places so i knew it would have to get a credit card if i wanted to stick with Afterpay whereas with zip is could just have zip and nothing else, no credit card. It was easier for me than Afterpay + credit card.

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u spend alot of time on something that doesnt make u money

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