Balance Transfers
Take Advantage of Balance Transfer Offers Now-- Changes May Be Coming
Now is the time to shop around for a balance transfer card while the generous offers last. For years, cardholders have taken advantage of the 0% for 12 months balance
transfer with no fee offers to transfer and pay off debt with high rates, simply swapping to another 0% card when the rate expires.
"Consumers have enjoyed a period of prosperity and free money with these offers. However, providing these 0% interest loans is costly for issuers because many of these cardholders will either pay off their balance or transfer to another card when the offer ends, never paying interest or fees," says Bill Hardekopf, CEO of LowCards.com. "The goal of credit card issuers is to generate as much revenue as possible, so it is no surprise that they are making changes to balance transfer offers."
For example, some Chase credit cards, such as the Chase Platinum Visa, still prominently advertise the 0% for 12 months balance transfer offer. However, the fine print says that the introductory period may only be three months for balance transfers, depending on the issuer's review of the application and credit history.
Many cardholders currently do not charge a balance transfer fee for transfers made with the new card application, but that may soon change. Citibank has just started a test that eliminates the "no-fee with application" for balance transfers on some of their cards such as the Citi Platinum Select card.
"The balance transfer offers have been a very good deal and consumers should take advantage of them now. I think these small changes and tests are a harbinger of things to come. Once one issuer increases a fee or makes a change to make more money, the rest usually follow," says Hardekopf.
LowCards.com ( http://www.lowcards.com ) is an independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over six years.
Now is the time to shop around for a balance transfer card while the generous offers last. For years, cardholders have taken advantage of the 0% for 12 months balance
transfer with no fee offers to transfer and pay off debt with high rates, simply swapping to another 0% card when the rate expires.
"Consumers have enjoyed a period of prosperity and free money with these offers. However, providing these 0% interest loans is costly for issuers because many of these cardholders will either pay off their balance or transfer to another card when the offer ends, never paying interest or fees," says Bill Hardekopf, CEO of LowCards.com. "The goal of credit card issuers is to generate as much revenue as possible, so it is no surprise that they are making changes to balance transfer offers."
For example, some Chase credit cards, such as the Chase Platinum Visa, still prominently advertise the 0% for 12 months balance transfer offer. However, the fine print says that the introductory period may only be three months for balance transfers, depending on the issuer's review of the application and credit history.
Many cardholders currently do not charge a balance transfer fee for transfers made with the new card application, but that may soon change. Citibank has just started a test that eliminates the "no-fee with application" for balance transfers on some of their cards such as the Citi Platinum Select card.
"The balance transfer offers have been a very good deal and consumers should take advantage of them now. I think these small changes and tests are a harbinger of things to come. Once one issuer increases a fee or makes a change to make more money, the rest usually follow," says Hardekopf.
LowCards.com ( http://www.lowcards.com ) is an independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards/rebates, and lowest intro rates. It also gives and unbiased ranking and review for each card. Created by Hampton & Associates, the company has been analyzing the credit card industry and supplying objective websites on various consumer expenses for over six years.
Posted by Lynn at
4:08 PM
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