0% APR for 15 Months – A Memory

Do you remember when credit card companies offered 0% APR for 15 month deals?  It wasn’t too long ago, but those days are already a distant memory.  And the return of 0% for 15 months is unlikely.  During the past year, credit card companies have cut back on the length of 0% APR offers, with many companies now offering 0% for 6 months on balance transfer or purchases, and some cutting 0% introductory rates altogether.

During this summer, credit card companies not only cut the length of 0% APR credit card offers, but also increased long term interest rates.  The latter increases occurred despite a stabilization in the Prime Rate, which hoovers near all-time lows.  Recently, credit card companies have begun offering 0% for 12 month deals, though these special introductory rates are generally reserved for customers with the best credit.  Customers who don’t meet new, stricter approval standards are likely to only receive 0% APRs lasting about 6 months, if they can get approved for new credit cards at all.

To make matters worse, the final stages of the new credit card laws are slated to take effect in February, and many credit card companies may have to further reduce the length of 0% APR credit card offers to insure profitability under the new restrictions.  While some have hailed the new credit card laws as a positive for consumers, the reduction of length in 0% balance transfer and purchase rates is likely a direct result of these new rules.  Should the economy fail to recover sooner and credit card default rates continue to increase, consumers will not only be missing 0% for 15 month deals, but all 0% deals. 

Fortunately, February is still a few months away and credit card companies continue to offer 0% rates.  Unfortunately, getting a 0% APR may become a memory by this time next year.