Last May, the Federal Reserve proposed sweeping new credit card regulations.  The regulations, aimed at helping consumers, may in fact have a measured negative impact instead.  How could a consumer-centric initiative backfire?  By limiting the ability of credit card companies to offer 0% APR balance transfers, among other things.

The issue lay in one of the main initiatives:  prohibiting banks from repricing pre-existing credit card balances.  Why this may sound like a good thing, Discover’s (DFS) CEO was asked if the availability of balance transfers would be effected by the new regulations.  His response was sobering, as he stated the new regulations, “would and could change how we execute balance transfer offers.”  When asked if this would be an industry wide issue, he quickly responded, “certainly.”

Repricing current balances allows banks to manage risk, particularly the risk associated with extended generous 0% APR deals.  However, should the proposed changes to the the Federal Reserve Board’s Regulation AA (Unfair or Deceptive Acts or Practices), the ability for consumer who lack the highest credit scores to get a 0% balance transfer may be hindered.

With many expecting this legislation to clear before year’s end, and that little credit crunch issue still lingering, this is not the time to be sitting on the sidelines piling up interest expense.  Take control of your finances with a 0% APR balance transfer soon, as you may not be able to do so later.

In this blog, I’ve written extensively about no fee balance transfer credit cards. This time last year, there were a number of credit cards that offered 0% APR no fee balance transfers as well as a 0% APR on purchases for 1 year. Today, there is only one credit card that offers 0% no fee balance transfers and a 0% APR on purchases, and that offer is only for 6 months.

The problem with credit cards that offer just a 0% APR on balance transfers lay in the fact that if you use your no fee card for purchases, you are charged the standard, significantly higher interest rate. Or, you end up using your previous credit card and racking up a high interest balance. Either way, you don’t get to take advantage of a 1 year interest holiday.

Knowing this, I am of the opinion that the Discover More Card is currently the best balance transfer credit card on the market. My opinion is shaped by two important factors. The first, and most important, is that this card offers a 0% APR on balance transfers and purchases. This makes it possible to avoid paying interest for a full year. The second factor that influenced my opinion is a promotion Discover is running that gives new cardmembers a $40 cash back bonus if they spend $500. With the holidays approaching, it should be very easy for just about anyone to get this cash back bonus.

Now, even though this credit card charges a 3% balance transfer fee, the $40 cash back bonus offsets the cost of transferring $1300, essentially making that a no fee balance transfer. Plus, with the cap on balance transfer fees set at $75 regardless of the size of the balance transfer, the maximum balance transfer fee one would pay to transfer $5000 is $35, or .007%.

Clearly, this is not much of a fee. And if you consider the amount of money the 0% APR on purchases can save you over the course of the year, the Discover More balance transfer offer clearly stands out as the best balance transfer deal available this holiday season.