January typically marks the beginning of balance transfer season for consumers and 2012 looks to be getting off to a good start. Consumers who anticipate needing a significant amount of time to repay their credit cards will find it possible to get a 0% APR balance transfer lasting 21 months, while those who are confident they can repay balances sooner can get a 0% APR for 12 months and pay no balance transfer fees.

The Best Balance Transfer Offers of the Month

Given the availability of both long term 0% APR offers with low 3% fees and shorter term no fee balance transfer cards, selecting the best balance transfer card really comes down to individual needs. Consumers who want to save on upfront fees ($30 for every $1,000 transferred) and are comfortable with only a 12 month 0% balance transfer period are likely best off with the recently released, limited time no fee balance transfer offer from Discover. This card is ideal for consumers who simply need a few months to get caught up on outstanding bills. Continue Reading »

While many consumers may be racking up credit card debt this month, those who are taking the time to assess existing debt will find that 0% APR balance transfer credit card options in December are as good as they were during any month of 2011.

In keeping with long term trends, Citibank continues to offer the longest balance transfer offers. They presently offer three cards with 0% interest rates lasting 21 months on balance transfers as well as new purchases. Discover remains competitive, with two cards offering 0% rates on balance transfers for 15 months or longer. And, for those who want to save on upfront fees and only need a short window to repay credit card debt, the Chase Slate card continues to be the only 0% no fee balance transfer credit card on the market.

December’s Best Balance Transfer Offers

For most consumers, and especially those who foresee the need to make purchases that cannot be immediately repaid, Citibank balance transfer offers are likely the best option. The Citi Platinum Select, Diamond, and Citi Simplicity card all offer a 0% APR on balance transfers and purchases lasting 21 months. These offers are three months longer than the second longest balance transfer promotion and a full six months longer than the second longest 0% APR on purchases promotion. All three cards carry standard 3% balance transfer fees. Continue Reading »

A few weeks ago, a Facebook page declaring December 11th as Balance Transfer Day sprung up. This marginally coherent “movement” to occupy credit card companies was clearly aiming to piggyback on the success of the Move Your Money Project as well as the Occupy Wall Street (or whatever irks you today) Movement.

The stated goal of the “movement” was to get consumers to utilize low and 0% balance transfers as a way to save money while getting back at major credit card companies. The underlying logic and motives weren’t so clear.

Earlier this week, Candice Choi of the Associated Press wrote an excellent investigative article questioning the motives of the people behind Balance Transfer Day. This controversy brought national attention to the matter and, in the process of shooting holes in the “movement,” it also served to increase awareness of balance transfers.

Consequently, the Balance Transfers Day controversy may end up helping consumers more than the “movement”.

How Consumers Can Benefit from Balance Transfers Day

Simply put, balance transfers allow consumers to transfer high interest rate debt to a new credit card that offers a low and/or 0% interest rate for anywhere from 6 months to a current maximum of 21 months. During the 0% introductory period, consumers pay no interest on outstanding balances. The ability to avoid interest expenses during a 0% balance transfer promotion can help consumers pay down the principle portion of their credit card debt faster or, at the very least, prevent interest from piling up. Continue Reading »

Many credit card holders are unsatisfied with their credit cards, their bank, or both. They do not like paying late fees and over the limit fees that they feel are arbitrary and punitive. Nevertheless, most cardholders continue to do business with super-sized banks that charge these fees. They may do so out of habit, out of convenience, or perhaps out of a perceived lack of choices. Cardholders actually do have a choice to do business not with a bank, but with a credit union.

The Pentagon Federal Credit Union, which is easy to join, offers the PenFed Promise Visa card as an alternative to fee laden major bank credit cards. The PenFed Promise Visa card charges no late fees, no balance transfer fee, and no foreign transaction fees, features that many consumers can benefit from.

PenFed Promise Visa Card Overview

The PenFed Promise Visa  is a rare card that may best be defined by what it isn’t rather than what it is. This card has no annual, foreign transaction, balance transfer, cash advance, over the limit, or late fees. New customers will receive a 4.99% APR on balance transfers for 36 months, and an introductory APR of 7.49% on purchases for three years. After that, customers will incur interest at a rate equal to the Prime Rate plus 6.74%.  There is a no-fee cash advance rate of 17.99% APR, and there isn’t even a penalty interest rate that applies when customers fail to make timely payments. Continue Reading »

Credit card debt can be incredibly difficult to pay off. Not only can new purchases continually offset monthly payments, but interest charges can also consume a large portion of each payment. Thankfully, promotional 0% balance transfer offers can give customers a break from interest payments, but this tool must be used carefully to maximize its benefit.

What Is A Balance Transfer?

The credit card business is highly competitive and banks are always looking for ways to attract new customers. One of their more popular strategies is to offer a promotional financing period in which the account holder is entitled to a 0% APR for a pre-defined period on purchases, balance transfers, or both. These offers almost always require a balance transfer fee (with the current exception of the Chase Slate no fee balance transfer card) which is usually between 3-5% of the amount being transferred. Once approved for a promotional 0% APR balance transfer offer, card-holder’s must typically initiate the transaction soon after opening an account, at which time the balance transfer fee is added to the cardholder’s balance. Continue Reading »

Updated March 9th, 2012: While Slate from Chase is best known for its innovative BluePrint money management tools, consumers searching for balance transfer credit cards will now have a nice financial perk to give Chase Blueprint a try, as the Chase Slate card is now offering a no fee balance transfer promotion with a 0% APR lasting 15 months.

At present, most credit card companies are charging 3% balance transfer fees, so consumers who are wary about paying credit card fees will find that Chase Slate is the only major credit card offering a 0% introductory period on balance transfers and charging no balance transfer fees. Plus, at 15 months, the introductory period on Slate from Chase is only a mere three months shorter than what is available on the longest balance transfer offers.

Savings from the Chase Slate No Fee Balance Transfer Fee Offer

Before the credit crisis, a number of credit card companies offered no fee balance transfers. Companies that did charge balance transfer fees tended to limit the maximum amount to $75 per transaction. After the crisis, balance transfer fees jumped. While most have come down to the 3% range, the old $75 maximum no longer applies. Consequently, consumers seeking 0% balance transfers are typically required to spend about $30 for every $1,000 transferred. While this is often a pittance compared to what can be saved by doing a balance transfer, balance transfer fees do add up. Continue Reading »

One of the unfortunate side effects of America’s collective belief that the economy is heading for a recession is that many consumers have ceased looking for credit cards, despite the fact that 0% credit cards, and balance transfer credit cards in particular, can help mitigate financial problems. This issue is even more problematic if the 80% of Americans who believe a recession is imminent are correct, as the current crop of 0% APR balance transfer offers on the market will undoubtedly offer less value and become more difficult to obtain in the event a recession occurs.

Consumers with the prescience to act defensively in the event of an economic downturn will discover a limited, though exceptionally value packed balance transfer marketplace. At present, a handful of credit cards continue to offer 0% interest rates lasting in excess of 12 months and industry leading offers lasting 15, 18, and even 21 months. These lengthy offers have been available for the majority of 2011 as credit card companies have continued to aggressively court new customers. Continue Reading »