A year ago, many major credit card companies were only offering 0% rates on balance transfers for 6 to 9 months. As August begins, 0% APR balance transfer offers remain as strong as they have been in years. The longest 0% balance transfer currently lasts 18 months, while a number of other balance transfer offers last 15 months.
Just as the length of 0% balance transfer offers has surged, so have balance transfer fees. A year ago, most companies charged 3 or 4% fees. Today, fees on 0% balance transfers lasting one year or more are generally 4 to 5%. However, even with this increase in transfer fees, the balance transfer offers on the market today are about as good as they have ever been-or will likely be in the event credit card companies start to pare back on these offerings in the near future, which I suspect will happen towards the end of the year.
Currently, the Citi Platinum Select Card offers the longest 0% balance transfer at 18 months. The offer carries a recently increased 5% balance transfer fee, but for those who will need 18 months to pare down credit card debt, this offer provides the best savings opportunity. A person with $5,000 of credit card debt at a 15% interest rate can likely save close to $1,000 (including fees) during the 0% period. A person with $5,000 of credit card debt at a 20% rate can garner savings of around $1,400.
Another Citi Card offering a better than average 0% period is the Citi Dividend card, which offers a 0% APR for 15 months and charges a 4% balance transfer fee. With this card, a person with $5,000 of debt at a 15% rate can save around $800 during the 0% period. (See the Citibank balance transfer section for more information.)
The best balance transfer offer, in my opinion, comes from Discover, which is currently offering a 0% APR for 15 months on the Discover More Card. The card, which carries an online balance transfer fee of 4%, is not the longest balance transfer offer. However, Discover is a much more consumer friendly company than its competitors, and consumers who will need more time to eliminate credit card debt will likely get the best treatment from Discover.
The remaining major credit card companies continue to offer 0% rates for about 1 year with fees ranging from 3-5%. Some Capital One credit cards offer a 0% APR for about 11 months and come with 3% balance transfer fees. Chase also offers 0% APR balance transfers that can last 12 months, but these offers can carry 5% balance transfer fees. Bank of America continues to promote the stingiest balance transfer deals, with 0% rates lasting for either 7 or 10 months and fees of 4%. American Express remains out of the balance transfer game, with no 0% deals currently being advertised.
For more information on current balance transfer offers, please see the 0% APR balance transfer section of Smart Balance Transfers where you can compare deals and apply online.
-Jeffrey Weber
Important Disclaimer: All information is accurate as of date of publication and is presented “as is” and without warranty. Because offers change frequently, the rates cited in this article may change at any time. Please review the terms and conditions of any credit card offer before applying.
You May Be Interested In
- Report on Balance Transfer Credit Cards – August 2011
- December 2011′s Best Credit Card Balance Transfer Offers
- November 2011 Report on Balance Transfer Credit Cards
Based solely on the first eight months of 2011, it is fair to say that no other year in recent history has offered anywhere near as much value to consumers [...]
December may be the time for shopping, but consumers will find that the best credit cards offering 0% balance transfers this month can provide significant long term savings. Many of [...]
Although consumers are typically more focused on spending money than saving money with balance transfers during this time of year, credit card companies continue to aggressively pursue new consumers with [...]
