As expected, average 0% credit card balance transfer fees increased in March from a multi-year low of 2.95% back above the 3% mark to 3.1%. Average 0% balance transfer durations, which had also fallen to a 9 month low of 12 months, rebounded slightly to 12.17 months.

The expected drop in balance transfer fees occurred as a result of the termination of a limited time, 12 month 0% APR no fee balance transfer offer from Discover on February 29th. In the absence of this product, Slate from Chase is presently the only major credit card offering a 0% APR on balance transfers that charges no transaction fees. All other major companies are charging fees of 3% or more on 0% transfers.

Average Balance Transfer Fees Normalizing

Although common prior to the credit crisis, no fee balance transfer offers have been a rarity over the past three years. Continue Reading »

One of the beautiful things about the highly competitive market for credit cards is that banks are willing to pay customers to sign up for their products.  These payments can come in the form of cash back, loyalty points, or frequent flier miles.

In March, credit card companies are continuing to offer generous incentives ranging from $100 or $200 of cash back to as much as $500 worth of loyalty points. These bonuses are available on all types of cards and with many offers there is no annual fee. Nevertheless, some of the best credit card reward sign up bonuses are available on cards with annual fees. However, most of these cards charge no fees the first year, giving consumers a full year to cash in on rewards and evaluate whether or not they want to pay an annual fee over the long term. Continue Reading »

Unlike in 2011, 0% APR balance transfer credit card offers appear to be quickly deteriorating this year. At the start of 2012, the longest balance transfer offers available lasted 21 months and there were two no fee 0% APR balance transfer offer available. A mere two months later, the longest 0% credit card offers are now only 18 months and, while one no fee balance transfer offer remains, it is highly likely that this offer will end in the near future.

In addition to these factors, credit card companies may soon begin making it harder for consumers to gain approval. Some, for example, have stopped allowing applicants to list household income and instead require individual income. This is a particular issue for stay at home Moms and Dads who don’t currently bring in a paycheck and thus would need to input zero in the income field. Continue Reading »

Five Tips to Help Reduce Credit Card Debt

Credit card debt is an especially difficult type of debt to pay off. People who get into credit card debt rarely understand how their interest is calculated and compounded daily, not to mention how quickly credit card debt can spiral out of control. Once cardholders find themselves in trouble with this most expensive type of personal debt, it is important that they take immediate steps to pay it off. Here are the five most important actions to take to get out of credit card debt:

1. Stop Spending Money. While cardholders cannot abstain from some necessary purchases, it is important that they do everything possible to stop adding to their debt. This means curtailing all discretionary spending on their credit cards in order to keep their debt from growing.
2. Perform A Balance Transfer. There are many cards on the market that offer 0% APR balance transfers for as long as 18 months. With a 0% balance transfer, consumers can move their high rate balances to a new card that offers 0% rate. This stops interest from piling up and allows card-holders to repay debt significantly faster than they can at a regular rate. It also helps those who can’t afford to start repaying debt prevent interest expenses from adding 15% or more to their current debt over a year. Continue Reading »

As many Americans know all too well, credit card debt is extremely difficult to pay off. As payments are made, interest continues to accumulate and be compounded. At the same time, new charges can also add to a cardholder’s balance. Fortunately, credit card balance transfers allow customers to take a break from their interest payments in order to accelerate the process of emerging from debt. The problem is that many credit card holders fail to take advantage of these offers.

Here are the three most important reasons why those with credit card debt should apply for a balance transfer offer as soon as possible.

1. Promotional Balance Transfer Offers Can Extend For Very Long Lengths of Time. Most people who owe credit card debt will find that it can take them years to pay it all off. What they might not realize is that there are many promotional balance transfer offers of more than 12 months. Offers of 12, 15, and even 18 months of interest free financing are not uncommon in this highly competitive field. Continue Reading »

The credit card industry has always had an obsession with the idea of exclusivity. How else can one explain the proliferation of cards named after precious stones and metals such Gold, Platinum, Diamond and Sapphire?  While it is no longer the least bit exceptional to have a gold colored card in one’s wallet, there are still many other non-reward perks that a bank can offer its cardholders that might not be available to the general public.

Citibank’s Private Pass website – www.citiprivatepass.com is a prime example of how credit card companies are striving to create a sense of exclusivity in order to appease consumers seeking unique experiences.

How Private Pass Works

Holders of any Citi credit card or Citibank debit MasterCard – regardless of whether it offers credit card rewards – can gain access to the Private Pass web site.   Through Citi’s relationship with Live Nation, cardholders can gain access to various concert, theater, and entertainment and sporting events. Citi offers ticket presales, preferred seating, and VIP packages. For example, in 2102, Citi offered an Alumni Super Bowl Weekend VIP Package that included two tickets to the Super Bowl in Indianapolis Indiana, as well as hotel accommodations and access to many different NFL Alumni events over the weekend. Continue Reading »

One of the lesser known benefits of credit card rewards are the benefits of using a card for expenses that are reimbursed by a third party. For example, a business traveler can easily spend $2,000 a week on a modest trip that includes airfare, rental car, hotel, and meals.

When using his or her personal credit card, the business traveler is entitled to retain any cash back, miles, or loyalty points earned through their credit card spending. Most feel that this benefit is deserved due to the administrative costs of incurring debt, seeking reimbursement, and paying off the balance.  Others cite the inconvenience of business travel itself as more than enough justification for the rewards that can be earned by charging expenses to one’s personal card. Continue Reading »