Credit Cards With 0% Balance Transfer Offers
Click Here To Apply for a Discover Platinum More Card (0% Balance Transfer for 12 Months)
You have likely heard by now that many credit card companies are surreptitiously jacking up interest rates on their clients.
This is happening to many different people, from all different walks of life. Rich, poor, middle-class - it doesn't seem to matter, as credit card companies are attempting to raise rates on a growing number of people.
Good credit, bad credit - this still doesn't seem to matter. I've heard of people with impeccable credit scores and sterling repayment histories being hit with massive rate increases as well.
So what's going on here?
It's simple - many credit card companies are struggling during the recession.
Not only are delinquencies way up (for obvious reasons), but the number of credit card transactions that are conducted on a daily basis are down as well. Credit card companies make a pile of money through transaction fees - consumers aren't spending nearly as much money, so this is hitting the credit card companies as well.
The Federal Reserve recently reported that 37% of all banks have increased their interest rates.
Banks such as Citibank and Bank of America have increased their rates.
So that brings us to the topic of this article. In this current environment, when so many credit card companies are jacking up their rates - do 0% credit card offers truly exist?
The answer is yes.
Now, the 0% interest offers are only good for a limited period of time - normally 12 months - but they do exist.
There are also companies that will allow you to transfer your existing credit card balances to them, and pay 0% on that balance for a certain period of time (again, usually 12 months).
This can be a great way of preventing yourself from getting buried under an avalanche of growing debt payments. I mean, imagine carrying a credit card balance of $15,000, only to be told that your rate was going from 6% to 22%. This is a situation that more and more people are finding themselves in every day.
Now, just a few things to keep in mind:
1. Some credit card companies will charge you a one-time fee to transfer your balance to them. Make sure you are aware of the costs before you initiate the transfer.
2. Make an aggressive attempt to pay off your CC debt while you are in the 0% interest window - many people make the mistake of playing the balance transfer game, and never deal with the actual underlying debt.
3. Be mindful of the interest rates that you will pay at the end of the interest free period.
A few questions that you might have:
1. Why would a credit card company offer these promotions in the first place?
A: Credit card companies make money (a large % of their revenues) from credit card transaction and processing fees. More customers = more fees.
2. Surely there must be hidden fees and interest rates buried deep in these offers?
A: As mentioned, some companies will charge a fee for transferring your balance. Also make sure that you read all of the small print before applying for any credit card offer. The 0% financing deals are usually legit, as these credit card companies want a larger client base. Again, just be mindful of the interest rates once the interest-free period expires.
Here are two cards that currently offer 0% APR on balance transfers and purchases for up to 12 months. Simply click on the link to apply:
Discover Platinum Card w/ American Flag - 0% balance transfer for up to 12 months plus 5% cash back bonus rewards on selected products.
Discover Platinum More Card - 0% balance transfer for up to 12 months
Filed under: General Knowledge