The quality of 0% APR balance transfer offers in September remains strong. Most major credit card companies have help 0% interest rate periods at exceptionally long lengths and getting a 0% balance transfer for 15 or 18 months is still within reach for most consumers with good credit.

Citibank continues to offer the longest balance transfer offer, a 0% APR for 18 months with the Citi Platinum Select Card. This offer, which also carries a 0% interest rate on purchase for 12 months, is a full 3 months longer than the next closest offer and 6 months longer than the best offers from many credit card companies.

The Citi Platinum Select Card does carry a 5% balance transfer fee. However, 4-5% fees are common on many cards that only offer a 0% for 12 months, so anyone who could use a full year and a half to get out of credit card debt with the help of a 0% APR should gladly fork over the fee in exchange for the savings this card can provide.  For example, a person with $5,000 of credit card debt currently at a 15% interest rate can save close to $1,000 after balance transfer fees with this offer. If the same person used a credit card with a 0% rate for 12 months and a 3% fee, the savings would be closer to $600. Continue Reading »

Do you have significant credit card debt? If you’re like most Americans, you do. Even if you seem to have your payments under control, do you know how much you’re really paying in interest? Over the life of your credit card debt, interest can accrue at incredible rates and influence your savings more than you could ever imagine. Read on to learn how to stop high interest from impacting your savings and affecting your wealth.

With the average interest rate on credit cards now at about 15% (and it’s on the rise), it is no wonder that so many people are falling behind on payments and finding themselves drowning in a sea of debt. One reason this debt has gotten so bad in America (one in three households now carries credit card debt of more than $10,000), is a lack of education concerning interest rates and how high interest can impact savings.

 For instance, a credit card holder with a debt of $10,000 and a 15% interest rate who pays a minimum payment of $300 per month toward the debt will take almost 4 years to pay off the total amount, and will pay $3,200 in interest on the original debt of $10,000.

A credit card holder with a debt of $7,000 and a 21% interest rate who pays a minimum payment of $150 per month toward the debt will take more than 8 years to pay off the total amount, and they will spend a total of $14,550 to pay off the debt – that’s more than twice the original debt of $7,000! Continue Reading »

In early July, I posted a consumer advisory on balance transfer checks.  At that time, I had received a few emails from consumers complaining about Citibank balance transfer checks that were not being honored.  When I published the first advisory, I had expected a flood of new comments from angry consumers.  When those complaints didn’t arrive, I assumed the issue was over.  It isn’t.

Yesterday, a visitor named Patti posted about her recent Citibank balance transfer check problems.  Here is her story:

“I too experienced the same problem with these faulty Citibank checks. The biggest issue for me was that I received them not once, not twice, but THREE times and then I decided to take the bait and use them to pay off some small balances on other credit cards for some higher APR relief – especially since the offer stated the 0% was for 12 mos AND the balance transfer fee was only 3%, compared to 4 and 5% from other large credit card companies (i.e, Chase, Discover).

What ensued for a measly $1000 in BT offers was not worth the headache that I endured after this.

1). Sent out a check to a creditor for approximately $570 around 7/20.

2.) Sent out another check to a creditor for another $500 on 7/23.

3.) On July 24th, I received an email from Citibank stating that I should review a note in my account regarding my balance transfer offer. Upon reading this note, it stated that the first check I sent out to a creditor was going to be rejected. Continue Reading »

As a result of increased balance transfer fees on a number of Citibank credit cards, the average transaction fee charged on balance transfer offers lasting 12 months or more increased once again in July to 4.1%. Two Capital One credit cards, the Platinum and Platinum Prestige card, offered the lowest transfer fees at 3% on balance transfers lasting until August 2011. The Citi Platinum Select card, along with a host of other cards from Citi and Chase, carried 5% balance transfer fees.

Despite the increases in fees, 0% balance transfer credit card offers continue to be extremely generous. For example, the Citi Platinum Select Card charges a 5% fee, but offers a 0% APR for 18 months on balance transfers, the longest 0% balance transfer deal on the market. Most consumers who carry credit card debt can save a substantial amount of money with such a deal, as the 5% upfront fee is essentially the only cost of carrying debt for the 18 month period. Compared with an interest rate of 15% or higher, this can equate to savings of 60% or more, depending on the long term interest rate of balances that are transferred.

Another Citibank balance transfer offer that accompanies the Citi Dividend card carries a 4% fee and a 0% APR for 15 months.  A few Citi cards offering 0% rates for 12 months carry fees of 4 or 5%. Continue Reading »

A year ago, the longest 0% balance transfer offers lasted 12 months and many credit card companies were only offering 0% deals for 6 or 9 months. Today, there are two credit cards that offer a 0% APR on balance transfers for 15 months and one that offers a 0% APR for 18 months. These are among the longest 0% credit card offers in history and, in my opinion, they won’t be here for long.

The reason I am concerned about the longevity of these 0% offers is simple. Last year, many major credit card companies lost customers by raising interest rates, cutting credit limits, and adding fees. To make up for all the lost accounts, credit card companies like Citibank have boosted promotional deals to lure in new customers. To keep pace, other companies like Discover have increased the length of their balance transfer offers.

Unfortunately, the very long balance transfer offers available today are essentially a test. Banks are trying to find out what they need to offer to bring in new customers and extending 0% interest periods is just one trick in their extensive toolbox. Generally, tests such as these can last anywhere from a few months to a year or more. However, the uncommonly long length of these deals leads me to believe they will only be available in the short term. Continue Reading »

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. Continue Reading »

Beginning tomorrow, Citibank will be increasing the balance transfer fee on its flagship Citi Platinum Card as well as the Citi Diamond Preferred credit card.  In June, the balance transfer fee for both of these cards was a low 3%.  In early July, Citi increased the balance transfer fee on the Citi Platinum Card to 4%, in line with most other banks.  The balance transfer fee for the Citi Diamond Preferred Card remained at a low 3%.

Both the Citi Platinum Card and Citi Diamond Preferred Card will now carry 5% balance transfer fees.  On the Citi Diamond Preferred Card, the 5% fee is accompanied by a 0% APR on balance transfers lasting for 12 months.  However, on the Citi Platinum Card, the 0% balance transfer deal lasts 18 months, making it the longest 0% offer on the market.

Read the Complete July Balance Transfer Fee Report

With a 5% balance transfer fee, consumers will pay $50 for every $1,000 transferred.  On a $5,000 balance transfer, this amounts to $250 in fees.  Despite the relatively large fee, the Citi Platinum Card still offers new applicants substantial value.  For example, a person who transfers $5,000 from a card with a 15% interest rate can save close to $1,000 over the course of the 18 month 0% period. Continue Reading »