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0% credit cards a ‘plain dumb’ idea by the banks

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In a bid to attract younger customers, two of the Big Four banks have introduced credit cards with 0% interest rates.

However, there’s no such thing as a free lunch, just like there’s no such thing as free credit from a Big Four bank, and instead of accruing interest, the 0% credit cards attract high monthly fees.

Only two in five millennials use a credit card, compared to almost four in five older shoppers.

Respected payments analyst Grant Halverson, MD of McLean Roche Consulting, tells Brooke Corte the 0% credit card idea is “plain dumb,”

“If you were going to target a product to millennials, why would you have a credit card of any name, shape or form?”

“It’s a bit like a butcher trying to sell meat to vegans, it really is off the wall,”

Click play to hear the full interview: