Over the past year, we’ve seen no fee balance transfer offers disappear and balance transfer fees rise dramatically.  One of the remaining bright spots has been Discover, which had been limiting its balance transfer fees to the lesser of 3% or $75.  All of this will change on November 1st.

On this date, Discover will join the rest of the fee crazy credit card companies and remove the $75 balance transfer fee cap from all of its consumer offers, leaving a grand total of ZERO major credit card companies with caps on balance transfer fees.

The removal of the balance transfer fee cap will not effect everyone.  For example, if you are transferring a balance of less than $2500, you’ll pay less than $75.  And, if you are transferring multiple balances below $2500, your balance transfer fees will also remain the same.

The real victims of the industry wide hike in balance transfer fees will be consumers transferring large balances.  For example, a $10,000 balance transfer to any major credit card company will now cost $300 instead of $75.  While that is a 400% increase, its still a fraction of the $1200 that person might pay with a 12% interest rate.

While it is unfortunate that all the major credit cards are charging a full 3% on all balance transfers, I don’t think we should be complaining too much.  If the credit crunch (credit crisis?) start to get worse, we may not be able to get 0% balance transfers at all.  That would be a much greater problem than 3% fees.

For more information and to apply online for a balance transfer credit card while you still can, please see the 0% balance transfer section of Smart Balance Transfers.

Visitors to Smart Balance Transfers often write in wishing to know what cards offer high credit limits for balance transfers.  Unfortunately, the answer to this question is not very cut and dry.  In a nutshell, the best answer is:  it depends.  And, as the credit crunch has intensified, predicting which credit card will provide credit limits of $10,000 or $25,000 is even more difficult.

Here’s the main issue.  No credit card company can or will tell you what your credit limit will be until you have applied and they have processed your application.  It doesn’t matter what your credit score is, how high your income is, or what your favor color is.  Credit limits are determined based on proprietary, computer based risk models, and no one at any credit card company can even provide you an estimate as to what your credit limit will be.

The credit crunch has become yet another problem for people seeking high credit limits for balance transfers.  Credit card companies have become reluctant to extend credit to even the most credit worthy customers, and those with credit scores below 700 will have a hard time getting a respectable credit limit.

Taking these factors into consideration, there are still a number of options for consumers looking to transfer high balances from high interest credit cards to 0% APR credit cards.  The first option is to apply for a credit card issued by a company that offers high credit limits.  Below is a list of credit card companies that offer above average credit limits:

• Discover - Offers credit limits of up to $25,000
• Bank of America - Offers credit limits of up to $25,000
• Capital One - Offers credit limits of up to $20,000

While the three credit card companies listed above offer high limits, there is no guarantee that you will get a high enough credit limit to cover the balances you wish to transfer.  However, one option would be to apply for a credit card from two or more of these issuers.  While you may not get the credit limit you need from one company, your combined credit limit may be high enough to help you get all of your high interest balances onto 0% APR cards.

For more information, please see the 0% APR balance transfers section of Smart Balance Transfers where you can compare credit card details and apply online for approval.

I’ve been warning readers about potential problems in the balance transfer market for some time now (see http://www.smartbalancetransfers.com/blog/2008/09/0-balance-transfers-regulations/, http://www.smartbalancetransfers.com/blog/2008/08/is-it-getting-harder-to-get-a-0-apr-balance-transfer/ or http://www.smartbalancetransfers.com/blog/2008/10/credit-crunch-crunching-credit-cards/).  And it seems my “rantings” are becoming an unfortunate reality.  Major credit card issuers, including Chase, are reporting ever increasing credit card defaults.  The result of higher defaults is tighter approval standards.  And the consequence is that less and less people will qualify for 0% APR deals.

The Washington Post published an ominous article on the matter today.  Titled, “Banks Hoard Cash as Credit Card Defaults Rise,” the article highlights the issues facing credit card companies, and more importantly, consumers.  Greg McBride, a senior financial analyst at Bankrate, strikes a particularly disconcerting note, stating, “Even somebody with great credit is going to have an extremely difficult time getting a loan if they don’t have a down payment.”  While this blanket statement applies to all categories of loans, the message is clear:  credit will not be easy to acquire.

As nearly all major credit card companies have publicly acknowledged a tightening in credit standards, the question becomes:  how much more tightening will occur?  Clearly, the financial markets are still in the throes of the credit crunch.  And an end is not yet in sight.  Given this perilous situation, consumers need to act quickly if they want to take advantage of a 0% APR.  Otherwise, there may not be 0% offers available to all but the most credit worthy.

As I’ve said before, if you are currently carrying a balance on your credit card, refinancing with a 0% APR is an excellent way to not only save money on interest, but also pay down current debt.  Even if you don’t carry a balance, having a credit card that offers a 0% APR on purchases is a great insurance policy.  With the future of the economy uncertain, there is little time to wait.  Things will get worst for credit card issuers before they get better, and the unfortunate victims of this will be consumers.

For more information and to apply online for a 0% APR balance transfer or 0% APR credit card, please refer to the credit card comparison sections of SmartBalanceTransfers.com.  By taking a few minutes to apply for a 0% balance transfer today, you can realize substantial savings during the next year.  How much you can save will depend on how much debt you currently have.  The average household, which carries close to $9000 in debt, can realize interest savings of over $1000 by transferring balances from a credit card with a 12% interest rate.  In tough times like these, that’s a deal no one should ignore.

To find out exactly how much you can save, you can try our balance transfer calculator before applying online.

American Express targets their credit cards to big spending consumers.  However, over the past few years, American Express has offered a great deal on fixed APR for life balance transfers with many of their credit cards.  However, as we reported last month, American Express is no longer offering fixed APR for life balance transfers.  Instead, many of their credit cards now offer low rate balance transfers of 2.99%.

While a 2.9% interest rate may be an attractive offer to people paying 10% interest or more on their credit card balances, there are a lot of credit card companies offering 0% APR balance transfers.  With 0% balance transfers available, there’s little reason to opt for a 2.9% rate.  Plus, when you add in balance transfer fees of 3% per transaction (with a $99 maximum), your effective interest rate is closer to 6%.

One balance transfer credit card of note from American Express is its Clear card.  This card offers a 3.99% APR for 12 months, but charges no balance transfer fees.  Individuals who plan on repaying their balances quickly can probably save more money with this offer than with a 0% balance transfer card that charges a 3% fee. 

For more information on American Express balance transfers, please see their respective section in the credit card comparison section of this website.  For more information on 0% APR balance transfers, please refer to that section.

Capital One has recently updated a number of their credit cards offered online.  Here are some current offers for www.mycapitalonecard.com mail offer recipients to consider.  Because these offers update frequently, we suggest reviewing the card offer by clicking the card name to get complete and accurate terms and conditions.

www.mycapitalonecard.com offers for consumers

Capital One® No Hassle Miles(SM) Rewards - Excellent Credit - This card now offers a 0% APR on purchases. 

Capital One® No Hassle Cash(SM) Rewards - Also offers a 0% APR on purchases.

Capital One ® Platinum Prestige Visa® - Offers a 0% APR on purchases and balance transfers.  For individuals with excellent credit.

Capital One® Classic Platinum Visa® - An offer for individuals with average credit that also offers a 0% APR on purchases.

www.mycapitalonecard.com offers for businesses

Capital One® Business Platinum with No Hassle Cash(SM)- offers a 0% APR on purchases and balance transfers

Capital One® Business Platinum with No Hassle Miles(SM) - offers a 0% APR on purchases and transfers along with No Hassle Rewards

Can’t find the card you’re looking for?  You can compare Capital One credit cards in the main section of our website or visit www.mycapitalonecard.com.