If you want to reduce credit card debt without paying a fortune in interest, 0% balance transfer credit cards can be an extremely helpful tool.  With a 0% balance transfer, you pay a small transaction fee and no interest for the length of the 0% interest period.  With current balance transfer offers lasting up to 18 months, this can translate into hundreds of dollars in savings and reduce the time it takes to get out of credit card debt by years.

Here’s an example using the Citi® Platinum Select® Card which currently offers a 0% APR on balance transfers for 18 months and charges a 4% balance transfer fee.  A person with $5,000 in credit card debt will pay a $200 balance transfer fee and no interest for 18 months.  Assuming a $100 monthly payment, at the end of the 0% interest period, that person’s credit card debt will be $3,400.  This amounts to a 32% reduction in credit card debt in a year and a half. Continue Reading »

See Balance Transfer Fee Update for late July Changes in balance transfer fees.

Balance transfer fees edged up in July, mainly due to a fee increase from Citibank.  Citibank, which had been charging 3% balance transfer fees, increased the fees on most of their cards to 4%.  Despite this slight increase, 0% balance transfer deals remain strong.

Citibank continues to offer a 0% Intro APR for 18 months on balance transfers with the Citi Platinum Select Card. Although the balance transfer fee increased to 4% in July, this offer would still enable a person with $5,000 in credit card debt at a 14% rate to save $1,000 in interest during the 0% period.  Some of Citi’s other cards, such as the Citi Dividend Card, also carry 4% balance transfer fees but have shorter 0% periods.

The Citi Diamond Preffered card charges a 3% balance transfer fee, but only offers a 0% APR for 12 months.  For most, paying an extra 1% to get 6 additional months at 0% is worthwhile, which make the Platinum Card a superior deal. Continue Reading »

While consumers don’t have to worry about credit card rate increases, small businesses still need to closely monitor their credit card statements.  Why?  Because small business credit cards aren’t covered by the CARD Act, credit card companies can increase interest rates at any time, for any reason.

I recently found a rate increase notice on page 9 of a 13 page credit card statement from American Express.  Presently, the rate on this particular business card is a very reasonable 12.24%.  On August 1st, the rate increases by nearly 30% to 16.24%.

If I want to opt out of the interest rate increase, I have until August 20th to call in and close my account.  This would allow me to repay my current balance at the lower interest rate.  However, if I want to keep my card open, I must accept a higher interest rate. Continue Reading »

Credit card companies are being surprising generous these days. Not only have some extended 0% balance transfer deals to 18 months, but many are offering perhaps the best cash back credit card promotions in years.

Last week, Chase unveiled the Chase Freedom® Visa – $100 Bonus Cash Back card, which gives consumers a $100 cash back bonus after they spend $799 within 3 months. This is by far the best cash back credit card deal on the market.

Discover, which had been offering a $50 cash back bonus to new cardholders after they spent $599 in three months recently improved its bonus cash back promotion. The revised Discover® More® Card – $75 Cashback Bonus® offers a $75 cash back bonus when $500 is spent within 3 months. Continue Reading »

Credit card companies are not only continuing to offer 0% APR balance transfer credit card deals lasting as long as 18 months, but many companies actually improved balance transfer offers at the start of the month. Compared to the same period last year, the length of 0% deals is nearly 3 times longer.

Citibank continues to offer the longest 0% balance transfer deal, a 0% APR for 18 months with the Citi Platinum Select Mastercard. While they advertised this rate last month, a key change to the terms and conditions substantially improves this offer. In June, this card offered a 0% APR for 18, 12, or 7 months, based on a review of an applicant’s creditworthiness. Thus, a person could end up with a 0% APR for only 7 months if they failed to meet the highest criteria. This offer provides a 0% APR for 18 months to approved applicants. View offer details.

The only negative change in Citi balance transfer offers is an increase in balance transfer fees. Citi had been among the last major banks to charge 3% fees. They recently raised the rate on most of their cards to 4%, bringing their fees in line with other competitors. Nevertheless, paying a 4% fee to get a 0% APR balance transfer that lasts a year and a half is a remarkable deal. Continue Reading »

A few days ago, a visitor of Smart Balance Transfers contacted me about an issue she had with a credit card check her fiance received in the mail. I have long cautioned against the use of balance transfer and cash advance checks, mainly because there is always a chance that these checks may bounce.

Below is Irina’s experience with a bouncing credit card check from Citibank. Fortunately, she did not incur great expense. However, anyone considering use of these credit card checks should think twice before using them.

From Irina:

 1. My fiance has a credit card with Citibank. He is paying it off and has never incurred in default. His APR is about 7%.

3. My fiance saw an opportunity to get some credit card relief and make some payments and decided to take 3,000. He called and validated them. The executive that made sure of that told him that he could write the check to himself, go to a Citibank branch and get cash. Continue Reading »

The Chase Freedom® Visa – $100 Bonus Cash Back is now offering a $100 cashback bonus to new customers. In order to qualify for this bonus, new customers must simply spend $799 on the Freedom card during the first three months of cardmembership.  Once the $799 spending requirement is met, the $100 cashback bonus is awarded in 8 to 10 weeks.

This particular Chase Freedom(SM) Visa provides one of the more lucrative cash back sign up incentives presently on the market. Discover currently offers a version of its More Card that comes with a $50 cash back bonus. Similarly, Citibank has a few credit cards that offer sign up reward bonuses ranging from $30 to $50.

Bonus cash back rewards like those offered with the Chase Freedom® Visa – $100 Bonus Cash Back and other competitors aren’t new. However, the Chase Freedom® Visa deal is particularly generous as it amounts to a 12.5% cash back return on the required $799 of spending. Historically, special cash back deals are usually no more than $50. Continue Reading »