You know how your mate has this great setup with his credit card
where he's actually making money, because he pays off all the money before it accrues interest and still gets extra points for travel?

Well, I know a guy who works in the financial industry. And apparently (I couldn't believe this, but he was adamant that it's true), when a company is going to offer a given rate of interest, or a particular kind of account, or any kind of financial 'product' at all, they actually have some people work out whether they're likely to make a profit or a loss on it beforehand. And if they're going to make a loss they either alter their plan, or even don't go ahead with it at all!

Apart from the utter sneakiness of this, there's also a slightly bizarre consequence: it means that the financial industry, as a whole, is actually better at this than your mate.
(apeloverage committed the vile act of onanism on, Fri 1 Aug 2008, 11:29, 3 replies)

Maybe..
But remember, they look at the scheme as a whole. Most people aren't good enough with their money to make money out of these plans, so overall the credit card companies make money. It is definitely possible to make money out of interest free credit cards, it just takes more discipline than most people have.
(robbersdog, Fri 1 Aug 2008, 12:36, closed)

You're really surprised?
Banks will go to any lengths to make as much money as legally possible.
(lost, Fri 1 Aug 2008, 12:41, closed)

*shrug*
Works for me. So a credit card that might be what you call someone who's never had sex gave me a credit limit of 20 grand on a 0% interest account.

Withdrew 95% (the maximum) to a savings account, where it sits earning me 6.5% interest for a year. The minimum payment is 25 quid each month. I reckon I'll have earned about 1200 quid by the time the interest free period is up (a year). Not bad for doing bugger all. Obviously I'll have "saved" 25 quid each month as well, so all in, 1500 quid.
( shadyron, Fri 1 Aug 2008, 15:49, closed)