Banks made money from transfer fees, typically around 3%, and begin to earn interest on debt after the promotional period, usually lasting six months to as long as two years, ended.
But banks were burned in the 2008 recession when users of balance transfers defaulted at among the highest rates in the industry, according to the sources. Some theorized that borrowers took advantage of balance transfers after worrying about their job security, or even after they've lost their jobs, putting them at risk of eventually defaulting.
Now, lenders are being more selective about who they make no-interest offers to, favoring customers with higher credit scores and other advantages, said the people. More thanAt the same time, the industry has offered many borrowers forbearance during the pandemic, and interest for months. For many customers, those programs are ending soon, and it's an open question as to whether they will resume making payments.
This is important.
What the fuck did they expect with a 1200 stimulus check. Like that shit evens pay for a month rent.
We are whistling past the graveyard right now but there is another graveyard a couple blocks further up and we wont be whistling then
There is a tidal wave coming. People don’t have jobs, the support from the Feds is running out with no plans to replace it and the virus is running rampant. The economic impact of this is just starting, not ending.
Credit card companies charge outlandish interest rates yet people keep piling debt on them like crazy!
It could be a reckoning.
There is going to be a massive wave of defaults. Maybe if they want to get paid back, they should stop charging exorbitant fees and usurious interest rates.
Funny how they didn't rein in themselves before they defaulted.
Why fear defaults? Uncle Sugar has your back.
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Source: CNBC - 🏆 12. / 72 Read more »