Rise of the Flat Rate Card
Research shows cards offering a simple flat interest rate are growing in popularity
12th April 2005
A report commissioned by Capital One has predicted a strong rise in popularity of credit cards offering 'one low rate' for both balance transfers and purchases.
0% balance transfer cards have been one of the marketing successes of recent years, and such is their popularity they have spawned the practice of 'credit card surfing' which the report estimates costs card companies £80m a month in lost interest.
Not surprisingly, card issuers are keen to stop these losses, and flat rate cards which offer a permanent low rate rather than a 'teaser' introductory rate are seen as a good replacement, being popular with customers as well as banks.
The report says that 61% of customers would now prefer a single clear rate rather than an introductory offer, a figure up from just 35% last year.
Read More: Capital One Press Release
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Products from Capital One : Homeowner Loans, Classic, Easy Access, Fixed Rate Bonds, Guaranteed Access Bond, No Hassle Platinum Card, Platinum, Premier |
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More Capital One News : Report Calls For ID Fraud Action, 1 in 3 Fail to Clear Balance Transfers, 5 Million Use Balance Transfer Option |
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More on Flat Rate Credit Cards : Co-op : Fixation on Rate Tarts (News, 04/04/2005), 1 in 3 Fail to Clear Balance Transfers (News, 05/01/2005) |
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More on Balance Transfers: Balance Transfers: 0%, For Life, or Flat Rate? (Article, 28/09/2005), Beware the Balance Transfer Fee! (Article, 05/09/2005) Compare Balance Transfer Credit Cards (Article, 16/06/2004), Balance Transfer Credit Cards (Article, 17/03/2004), Balance Transfers Dwindle in Popularity (News, 07/09/2006), Return of the Annual Fee? (News, 14/11/2005), Egg Profits Boosted by Balance Transfers (News, 27/07/2005), Egg Introduces Balance Transfer Fee (News, 03/05/2005), Co-op : Fixation on Rate Tarts (News, 04/04/2005), See all 11 Balance Transfers stories >>> |
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