(Updated May 5, 2009) Balance tranfers on credit cards used to be one of the best ways to game the system so that your credit card balances were charged below-market interest rates. From 2007 to 2009, two new trends developed which changed the face of balance transfers.
The result is that balance transfer offers are not as attractive as they once were. These changes were:
- Higher Transaction Fees: Balance transfers are now subject to a fee equal to 3 or 4 percent of the transferred balance. Additionally, caps have been removed. On a $5,000 balance transfer, you are now looking at a $150 to $200 balance transfer fee, whereas before it may have been capped at around $50.
- Shortening of Low Rate Terms: Instead of low rates for the life of the balance, now creditors are returning to promotional rates that expire in about a year.
Current Balance Transfer Offers from Major Creditors
- Bank of America: Promotional transfer offers are reaching as low as 0.99% for up to one year. The balance transfer fee is a minimum of $10 and has been increased from 3% to 4% effective June 1, 2009.
- Chase: Promotional transfer offers are for 0% for six months, or 2.99% for up to 18 months. Balance transfer fees equal 3% of the transfer with a minimum charge of $5.
- Citibank: Promotional transfer offers include 0% for up to 12 months or 1.99% for up to 16 months. The balance transfer fee is a minimum of $5 and is equal to 3% of the balance transfer.
Additional offers will be updated as newer information is received. These offers can and do change frequently, and they may not be offered to all applicants. We provide this information as a public service based upon a recent sampling of various offers from major credit card issuers. This information is provided as an educational service. As we cannot guarantee any of the results listed here, you are still encouraged to independently verify any offers prior to accepting an offer from any creditor.
