One of the bigger financial stories coming out of the COVID-19 outbreak (now pandemic) has been the dramatic decline of stocks around the world. There have been numerous efforts to try and curb these losses, including an announcement by the Federal Reserve lowering interest rates. There has even been speculation of the Fed cutting interest rates to zero, which would be an incredible turn of events. Consumers will be one of the biggest winners from these cuts. And Chase sending reduced APR offers to existing customers led the way.
Chase Reduced APR Offers
The Chase reduced APR offers were quickly reported through social media and several credit card forums, including Reddit. The exact offer differs from cardholder to cardholder, but three offers seem most common:
- 4.99% APR
- 6.99% APR
- 8.99% APR
There have also been several reports of offers of 0.99% APR, though these are fewer are far between. All of these offers apply to both purchases and balance transfers and run through September 2020. Once these offers expire, the standard APR resumes, though that rate will likely be significantly reduced thanks to Fed rate cuts.
Should You Accept Chase’s Offer?
Most cardholders will likely be inclined to accept the offer. There is another school of thought; however, that argues being patient. The logic here stipulates that declining one offer will lead to a better one later. And, while this bear fruit in some instances, it isn’t a guarantee.
Of course, carrying a balance with a rewards credit card is never ideal. Should you hold Chase rewards cards, such as a Freedom or Sapphire card, these offers probably won’t offer many incentives. Failing to pay in full each month results in interest, which, in turn, results in throwing rewards down the drain. For these with other Chase credit cards, like the Slate, the offer may be too good to pass up.
Will Other Issuers Follow Suit?
The dire effects of coronavirus on the global economy are only just beginning to be felt. Because of this, there is no way of knowing what other issuers will do soon. It seems likely, however, that the economic pressures will have a ripple effect, leading to credit card companies offering APR reductions to existing customers.
Related Article: Coronavirus Fears May See Federal Interest Rates Hit Historic Low