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No Fee Balance Transfers |
When they were available, no fee balance transfers offered consumers the opportunity to increase balance transfer savings by eliminating the pesky fee credit card companies charge for each balance you transfer. Beginning in the fall of 2008, most major credit card companies stopped offering 0% APR no fee balance transfers. During 2009, many credit card companies increased balance transfer fees to as much as 5% and decreased the length of 0% deals to an average of 6 months. Consequently, consumers looking to save the most money via the use of balance transfers will find that paying a balance transfer fee is necessary to get a long term 0% rate. However, this fee is nothing more than a nuisance, as a 0% APR balance transfer can provide hundreds of dollars a year in interest savings.
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0% APR and No Fee Balance Transfers Credit Cards |
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About No Fee Balance Transfers |
No Fee Balance Transfer Update: A year and a half ago, the last no fee balance transfer credit card offering a 0% APR for 6 months or more issued by a major bank was pulled from the market by Bank of America. Additionally, consumers should be aware that many credit cards currently advertising a 0% APR for "up to 15 months" or more may approve your applications and only grant you a 0% APR for as little as 6 months. If you don’t have excellent credit, be sure to wait until your credit card arrives in the mail before initiating a balance transfer, as this will help insure you in the event you are not approved for the longest advertised 0% period.
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Additional Information about Balance Transfer Fees |
About No Fee Balance Transfers (When They Existed): Until the credit crunch began, a number of companies offered 0% interest rates for a full year on no fee balance transfers. When these offers were available, a consumer could save $75 or more on every balance transferred and get all the benefits of a 0% APR for a year.
Unfortunately, all the major issuers ceased offering 0% for 1 year, no balance transfer fee deals in early 2008. In December of 2008, the last credit card that offered no fee balance transfers and a 0% APR for 6 months issued by a major credit card company was pulled from the market. Consequently, consumers have little choice but to pay balance transfer fees should they desire to take advantage of the savings provided by a 0% APR.
Fortunately, paying balance transfer fees is not nearly as bad of a deal as one might think. While a nuisance, they hardly put a dent in the substantial savings one can reap with a 0% APR for a full year. And, while credit cards that offered a 0% APR for a year and charged no balance transfer fees were unquestionably the best deal in town, no fee deals that only offered a 0% APR for 6 months actually offered consumers significantly less savings than deals that included balance transfer fees.
The key thing is not to fret about paying $50 in balance transfer fees and focus on the hundreds you could save with a 0% interest rate for a full year.
A Brief History of Balance Transfer Credit Card Fees: Two years ago, there were a handful of credit cards that offered no fee balance transfers and 0% interest rates for 1 year. Today, balance transfer fees are on the rise, with most companies charging 3-5% balance transfer fees with no maximums. Although 0% credit cards that charge no balance transfer fees are gone for now, credit card companies have recently become more generous with 0% deals. So while you may have to pay an extra 4% in fees, it’s much better than paying a 14% interest rate with your current card.
Review 0% APR Balance Transfer Offers
*Important Disclaimer: See credit card applications for complete terms and conditions. While Smart Balance Transfers makes reasonable efforts to maintain accurate information, all credit card information is presented without warranty. When you click an “Apply” button, you can review the credit card terms and conditions on the issuing company’s website.