What’s With All The 0% APR Balance Transfer Offers?
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Loading ...March 31, 2008 Filed Under: General 261 words
We have pretty much all seen offers for 0% APR balance transfers. Those who are smart have taken advantage of these offers and played the transferring balance game, in which they transfer balances from a high APR credit card to the 0% APR card. They then have 6-12 months to pay off the new card interest-free. It has been a great way to reduce debt, or even to borrow money interest-free.
Many credit card companies are reducing the amount of solicitations they mail out, so offers for no fee balance transfers are being reduced as well. Such offers may soon become a thing of the past. One of the main reasons is actually the transfer balance game. Credit card companies use this as a way to gain new customers and hopefully make money off of them in the future, but many people are paying off the cards by the end of the offer period. Some are even moving the balance to yet a new 0% APR card.
The credit card companies are losing money in this way and may there may soon be 0 balance transfers available. Even if they are not eliminated completely, new rates of 4%+ for balance transfers with a transaction fee of 3%+. If you have plenty of credit card debt and you are in good payment standing, you may want to take advantage of such an offer as quickly as possible…before it is too late.
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