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.
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