|
 No Fee Balance Transfer Credit Card Offers Disappearing
Update 4/16/09! - Due to the near extinction of the no fee balance transfer, as well as recent news that Bank of America will be raising balance transfer fees to 4%, we've added a new article on the history of no fee balance transfers which help shed some light on the subject. You can read more here.
Update 4/3/09! - American Express dropped a number of credit cards that offered no fee balance transfers and a 9.99% APR for 1 year. There still remain a few American Express cards that offer this, as well as no fee transfers for 6 months with lower interest rates. For more information, please see the American Express credit card section.
Update 3/5/09! - American Express ceased offering low fee balance transfers with the majority of its cards. However, it is offering no fee balance transfers at a 9.99% APR with some cards. For more information see the American Express credit card section.
Update 2/1/09! - Here's a tricky one. Pulaski Bank and Iberia Bank are currently offering no fee balance transfers with a 0% APR for 6 months. However, getting approved for one of these credit cards is a near impossibility, with reports of approval rates of less than 1%. There are a number of issues with these cards. First, the approval process is probably more thorough than that for mortgages last year. You need to send in tax returns or payment stubs to complete the application. Additionally, the credit score requirements are in the 800's.
Because of the complicated application process and extremely high credit score requirements, it is difficult to recommend these offers to consumers. First, most consumers will ultimately get denied for these credit cards. This can make it difficult for them to get approved for another 0% balance transfer card, as getting denied will lower a person's credit score and make them appear less credit-worthy to another company. Second, because the application process generally takes a few weeks and it takes a few weeks for balance transfers to clear, a person can end up spending 1% or more in interest during that period, reducing the value of the no fee balance transfer and essentially only leaving them with 5 months of no interest, as opposed to a full year.
Lastly, the outlook for 0% credit cards is extremely dim by any measure, with credit card companies reducing and eliminating these offers on a daily basis. Thus, if you don't have an 825 credit score and cannot repay your debt in 5 months, the safest and easiest thing to do is apply for a credit card that offers a 0% rate for a full year (you can review 0% APR offers here).
If all of this doesn't scare you, then by all means take a chance with the Pulaski Visa or the Iberia Bank offers. However, most, if not all consumers are better off playing it safe, eating the small balance transfer fee, and enjoying the security of a 0% APR for a year offered by a card such as the Discover More.
Update 12/4/08! - Bank of America ceased marketing of its sole remaining no fee balance transfer credit card today, the PetRewardsT Platinum Plus® Visa®. This card, which had offered a 0% APR for 6 months, was the last major credit card to provide a 0% APR and no fee transfers.
However, as has been the case ever since the major credit card companies ceased offering 0% for a year, no fee deals, the best balance transfer option is to choose a credit card that offers a 0% APR on purchases and balance transfers for a full year, such as the Discover® More (SM) Card.
Update 9/29/08! - With the fall of Washington Mutual, the ESPN Visa Card, which had offered a 0% APR for 6 months on no fee balance transfers is no longer available through online marketing channels. While we were never fond of this offer, as it was not a great option for individuals who do not intend to repay their balance in full within six months it marks yet another change in the marketplace. Balance transfer fees are growing and will probably continue to do so.
We have discovered an offer from Bank of America that provides a 0% APR for 6 months on no fee balance transfers, the PetRewardsT Platinum Plus® Visa®.
Update 9/16/08! - Although the ESPN Visa Card continues to offer a 0% APR for 6 months on no fee balance transfers, this offer is not a great option for individuals who do not intend to repay their balance in full within six months. As we discuss in a recent balance transfer article comparing this offer to the Discover More Card, the short duration of this offer, coupled with the fact that the APR after the 0% period can be as high as 23.49%, makes this a risky and much less profitable way to transfer balances. In fact, you can save about $400 more over the course of a year with the Discover offer. Plus, as a result of the many problems at Washington Mutual, we have received no data on acceptance rates for this offer for over one month. These factors combine to make this an offer we are not recommending until we gather more date from visitors and the bank.
Update 4/15/08! - Washington Mutual is now offering a 0% APR on no fee balance transfers, as well as purchases, for 6 months with its ESPN Visa Card. This is currently the only 0% APR no fee balance transfer deal available.
Update 4/7/08! - Citibank, which had offered a 0% APR for 1 year and no fee balance transfers with the Citi Professional Cash card has pulled this offer from the market. This particular card is now offering a 0% APR on purchases for a year. At present, there are no major credit cards offering no fee balance transfers.
Update 4/1/08!- Bank of America, which previously offered a 0% APR on no fee balance transfers for 6 months changed the terms of their Platinum Plus credit card. They now offer a 0% APR for 1 year on balance transfers and cash advances. A 3% fee applies to all balance transfers.
Update 3/1/08!- Citibank, which had offered a 0% APR on no fee balance transfers for 9 months with its Citi Professional Card with Thank You Rewards is no longer offering this deal. However, they now have a better offer: no fee 0% APR balance transfers for a year with the Citi Professional Cash card.
Despite the dearth of no fee balance transfer offers available, balance transfers still remain a highly effective way to save hundreds, if not thousands of dollars a year in interest. Although paying a balance transfer fee reduces overall savings somewhat, the benefits of 0% balance transfers are unquestionable. To learn more about how much you can save with a 0% APR balance transfer, try out our balance transfer calculator.
Compare Current 0% APR Balane Transfer Offers |
