0% Credit Cards

Some Good Tips Related To Credit Cards and Traveling

noreply@blogger.com (FeelessBalanceTransfer.com) — Wed, 01 Oct 2008 23:12:00 +0000

When I first saw this YouTube.com video, I almost stopped watching after 30 seconds or so, because I thought it would be too fluffy for my tastes (i.e. too much fluff and not enough useful content.) But, I posting this clip here today because, eventually, these two vacationers from Seattle offer some very good advice for travelers with credit cards. If you are planning to go on vacation any time soon, check out this video. I'm certain you'll bookmark the clip when you see how much good advice it contains. Enjoy!

Predatory Lenders on College Campuses Teach the Wrong Lessons About Credit

noreply@blogger.com (I.C. Jackson) — Sat, 27 Sep 2008 12:38:00 +0000

My husband likes to tell me about his college days, in the early 90s, before I knew him. One of his favorite memories is about his first experience with credit cards. He remembers being a college freshman, new to northern Michigan, stepping onto the campus for the first time. Expecting to be greeted by helpful upperclassmen and faculty who were there to escort him into the beginning of the rest of his life, he had a rude awakening - he was greeted by ‘the credit card guy’.

Still a fairly new marketing tactic at that time, campus recruiting by credit card companies was not looked down upon as the sleazy and unscrupulous predatory practice that it is. Older brothers, sisters, and cousins did not yet know to warn their younger relatives about ‘the credit card guy’ that would find them in the student center. The idea that you could get a free long distance calling card, T-shirt, or pizza just for filling out a short application was too good to pass up. Credit card companies know that starting college is an exhilarating experience; you feel empowered to make adult decisions, typically for the first time in your life. So, ‘the credit card guy’ makes sue that the very first ‘adult’ decision you make is to get a credit card you know nothing about because you want free pizza. Although the credit card companies claim that they are providing a valuable service to studnets, U.S. News and World Report agrees that this practice is questionable at best:

Just like many other unsuspecting freshmen, this campus recruiter convinced my husband that he needed a credit card, so he applied and was easily approved. Happy about his newfound freedom and means, he told his older brother about his credit card, expecting a good pat on the back. Instead, his brother was outraged. He had a steady job and living arrangements, paid his utilities on time, and was basically doing everything he could do to be financially responsible, but he couldn’t get a credit card to save his life. He was repeatedly denied because he didn’t have enough assets or income, according to the credit card companies. His little brother didn’t even have a job, and he just waltzed onto a college campus and got a card with a $500 limit? How unfair! Living on his own, he really needed credit to take care of business, yet his little brother, with absolutely no way to repay his debts, was able to get what he had been working hard for by simply checking “yes” in the box marked, “Are you a student?”

Needless to say, my husband was shocked and confused.

Now, in hindsight, he can see why his older brother was so angry. While his brother had intended to be responsible with credit he could not attain, my husband was absolutely irresponsible with credit that he did not have to work for at all. It helped to warp his idea of the purpose and proper use of credit, which took years to undo. However, because it caused him to plummet into debt so quickly, he can see why he and other college studnets were targeted. Low income plus easy credit equals a lifelong customer for credit card companies. With mass marketing of financial products to and predatory lending becoming a part of mainstream American culture over the past 20 years, young people and people with low incomes can almost expect to be able to get something for nothing. That’s why the mortgage industry crisis has crippled our economy. Sub-prime mortgage lending was ‘the credit card guy’ of the housing market.

Except no one got a free pizza.

Large Savings Account vs. Paying Down High-Interest Credit Card Debt

noreply@blogger.com (FeelessBalanceTransfer.com) — Sun, 14 Sep 2008 18:39:00 +0000

Most of us know that paying interest on credit card debt is one of the best ways to throw away money, no doubt. With regard to contemporary credit cards offered by reputable American banks, money-savvy consumers:

surf 0% credit card offers
are never late with payments
make every effort to keep their credit score high so that they can qualify for the best -- best as in most consumer-friendly -- credit card offers available in the market
if they aren't surfing 0% offers, pay their balances in full each month to avoid interest charges
take full advantage of their credit cards' rewards programs.
use credit cards to pay for all types of goods and services, so as to take advantage of the excellent consumer protections that most credit cards provide like zero fraud liability and purchase protection.

Bottom line: if you are a solvent and responsible consumer, credit cards work for you, and not the other way around.

Sometimes, I encounter a friend of family member who is paying interest on credit card debt, but who also has a relatively robust savings account. I explain how this doesn't make sense, because if you are paying e.g. 12% interest on your debt, and making 3% in your savings account, you are losing money -- and plenty of it -- each and every month. I often hear the excuse, "but I like to have a rainy-day fund." Yup, establishing and maintaining a rainy-day fund is an excellent idea, but it's important to find the right balance. I agree with the advice in today's YouTube.com clip: the only situation where it's reasonable to pay interest on credit card debt is if you have a good reason for stashing away a lot of cash, like if you believe that you're about to get laid of from your job. Here's the clip:

Credit Cards for Illegal Aliens

noreply@blogger.com (FeelessBalanceTransfer.com) — Mon, 21 Jul 2008 17:31:00 +0000

Should illegal aliens be allowed to get a credit card from one of America's biggest and most reputable banks? Today's YouTube.com clip is a clip from a CNN news story. Your comments are welcome.

Preparing For Rough Times Ahead

noreply@blogger.com (FeelessBalanceTransfer.com) — Thu, 03 Jul 2008 22:27:00 +0000

The global credit crunch that began last year and has caused misery in financial markets around the world is not over. In fact, many economists believe that we haven't even reached the beginning of the end. That spells trouble for many consumers and business owners looking for credit these days -- and possibly for the rest of 2008.

Banks are cutting back, even on accounts held by their most credit worthy customers. Credit lines are being reduced, and interest rates are being raised, even for certain borrowers who've never been late with a payment. The excuses the banks are using these days include, "You aren't paying down your credit card balance down fast enough," and, "Your debt to credit limit ration is too high." Banks are even looking at the what consumers are buying when determining whether or not the consumer is going to be hit with an unfavorable change in terms. In other words, your credit card company may change the terms and conditions on your credit card account simply because it doesn't like what you are buying!

I have about $4,000 worth of business-related credit card debt on one business credit card; it's an account with which I'm still riding out a introductory zero APR period, so I'm not getting slammed with interest charges. I'm worried about the state of the U.S. economy and the state of my business. Business has been slow, and I'm thinking that I may have to tap into more credit lines to keep things going. I receive a lot of snail-mail credit card offers each and every week, and many of these offers are for business credit cards. I usually glance through these offers quickly then dump them into the shredder. Lately, however, I've been paying very close attention to these offers, since I just might open up one or two more credit accounts.

I'd like to transfer the $4,000 balance on my current business credit card to a new card with a 0% balance transfer offer, so that I can continue to finance my operations without paying any interest. However, lately, the deals I've been getting via snail mail haven't been that great, and I'm certain the reason these recent offers have been lousy is due to the weak economy in cahoots with the credit crunch. This is very disappointing to me, because, historically, those snail mail credit card offers included the most consumer-friendly credit terms and conditions. It was not too long ago that I was seeing offers of 0% intro APR on transferred balances for 15, with no balance transfer fee. Here's what I've been seeing lately:

A business credit card offer from Bank of America - 0% intro APR on transferred balances and balance transfer convenience checks until December 31, 2008, with a balance transfer fee of 3% (minimum transfer fee is $10.) Once the interest-free period ends, the APR converts to the standard purchase APR on this particular account, which is fine. But here's the kicker: the balance transfer fee "will post to your account as a cash advance fee and will receive the Standard cash advance rate." So, in other words, if I transfer $4,000, I'll be charged a balance transfer fee of $120, and that $120 will be treated as a cash advance. You probably already know this but cash advance fees are always very, very high. For this particular card it's a minimum of 19.99%. This offer was shredded real fast.
Snail mail business credit card offer from Washington Mutual Bank (WaMu) - 0% intro APR on transferred balances until August 1, 2009 -- that's 13 months! The balance transfer fee is 3% of each transferred balance, with a minimum transfer fee of $5. The "go to" APR -- the APR the remaining transferred balance would be subject to once the interest-free period ends -- would be the Standard purchase APR, which happens to be a reasonable and competitive 9.99%. And, once again, here's the ugly part: "Balance transfer fees are added to the purchase balance and are subject to the APR for purchases." OK, granted, this is better than the Bank of American offer I described above where the balance transfer fee is treated as a cash advance, but I'm still not buying it. My credit rating is very high and I see no reason why I should have to pay finance charges on a balance transfer fee, like I'm some sort of subprime borrower. If the offer is stellar, then I don't mind paying a balance transfer fee, as long as the fee is a one-time, flat fee with no finance charges attached.

I'm not interested in transferring my business card balance to a consumer card, even though I'm very confident that I could find a better deal than the recent business credit card offers I've seen. I've worked very hard to get my FICO® credit score above 800, and transferring thousands of dollars to a new or existing consumer credit card would bring my score down.

That's all I have to report from the wonderful yet perilous world of credit card balance transfers for now. Stay tuned!

And Then There Were Four...

noreply@blogger.com (FeelessBalanceTransfer.com) — Tue, 01 Jul 2008 18:04:00 +0000

0% credit cards that don't charge a fee for transferring balances are consistently the most popular cards we recommend on this website. It is quite difficult, therefore, to see 3 great "no fee balance transfer" cards disappear from the market.

The American Express IN cards (IN:NYC, IN:Chicago & IN:LA) are no more. These cards offered 0% intro APR on balance transfers for 6 months, with no balance transfer fee. The really sad part is that American Express is one of the best banks out there when it comes to credit cards. Most other banks play "follow the leader" with their terms and conditions. American Express, on the other hand, always plays fair with their customers (based on anecdotal evidence.) Must have something to do with the fact that the company has along history of catering to wealthy, discerning consumers who actually read the terms and conditions before they signup for a card.

So now there are 4 cards left offering 0% intro APR and that don't charge a fee for transferring balances. Check them out here.

Of course, the hunt for the best 0% cards continues. Stay tuned.

No Balance Transfer Fee Credit Cards Still Obtainable Despite Credit Crunch

noreply@blogger.com (FeelessBalanceTransfer.com) — Sat, 22 Mar 2008 19:04:00 +0000

The credit crunch that's been causing problems in American credit markets has been affecting all classes of Americans, from billionaire Wall Street insiders trying to finance huge corporate takeover deals to middle-class consumers looking for attractive deals on loans and credit cards. With the housing market still languishing and many seasoned economists declaring that the American economy is already in a recession, it seems that 2008 is not going to be a good year for many Americans, from a money and finance perspective. The Federal Reserve has been responding to turmoil in domestic financial markets and the slumping economy by cutting short-term interest rates, but there is no way to tell when or if these Fed actions will jumpstart the economy. Slowly but progressively, banks have been approving fewer and fewer credit card applications since the subprime debacle began at the end of last summer. Thankfully, however, applicants with strong credit profiles can still get approved for high quality credit products. Moreover, in the American market today, financially secure individuals can still find 0% introductory annual percentage rate (APR) balance transfer credit cards that don't charge a balance transfer fee, even with certain small business credit cards.

On the consumer side, feeless, 0% balance transfer deals are still being offered by some of America's most reputable financial institutions, including the Bank of America® (BofA), American Express® and the Pulaski Bank & Trust Company. Web surfers looking for business credit cards which combine 0% intro APR on transferred balances with no balance transfer fee can choose from a healthy selection on offer from Citi®. According to Steve Brown, content manager at BusinessCreditCards.cc and BalanceTransfer.cc, the most popular consumer card at BalanceTransfer.cc is the BofA Platinum Plus® Visa® Card, while the most popular business credit card at BusinessCreditCards.cc is the Capital One Business Platinum Card.

"We've been getting emails from consumers who have been writing us about manifestations of the liquidity crunch that have been causing considerable pain for both American banks and individuals trying to find favorable credit deals. Cardholders have been complaining most about seemingly random credit line decreases, ever for customers with perfect or near-perfect credit. A cardholder who has an excellent credit history but who also has a high debt-to-credit ratio may be targeted by their bank for a credit limit decrease or an interest rate increase, since banks are worried about consumers who may be relying too heavily on revolving credit. It's never a good idea to have a high balance on a credit card. Consumers should use credit cards to take advantage of rewards programs and zero APR offers, and for emergencies. The consumer who tends to carry a balance from month to month may be headed from trouble in this economy," said Brown.

"The only positive consequence of this sagging economy is that the Fed has been responding to it by lowering short-term interest rates. These moves by the Federal Reserve have made obtaining and paying off loans and credit cards easier," Brown added.

Since mid-September of 2007, the U.S. Prime Rate has been lowered from 8.25% to the current 5.25%, thanks to interest-rate cuts by the U.S. Federal Reserve. Since most variable-rate credit cards -- and many other types of loans -- are indexed to Prime, most consumers and business owners who have been making payments on these loans and credit cards have been enjoying reduced APR's. Any consumer with a variable-rate credit card indexed to Prime who hasn't seen a decrease in their APR over the last 6 months should contact their bank and ask for a lower rate, Brown advises.

Some credit cards and loans are indexed to the London Interbank Offered Rate (LIBOR). Since LIBOR tracks very closely with America's benchmark, short-term interest rate -- the Fed Funds Target Rate -- individuals and business owners with loans or credit cards indexed to LIBOR should be enjoying lower payments as well.

The Federal Reserve is expected to cut short-term rates again when the Federal Open Market Committee (FOMC) meets for its next monetary policy meeting on April 30, 2008.

0% intro APR credit card offers are ever-evolving. Brown urges consumers to visit the blogs at the BusinessCreditCards.cc and BalanceTransfer.cc websites to stay informed about the latest news and tips from the credit card industry and to read reviews of newly released credit cards. Brown welcomes any and all questions and comments, which can be emailed from either site's email form.

"The banks make a lot of money with credit cards, so they still want to fill consumers' wallets with their plastic despite ongoing troubles in the credit markets. Individuals who are interested in getting the best possible deal with a consumer card, business card or any other type of loan should be sure to keep their credit score high, pay all their bills on time and try to keep their debt-to-credit ratio at around 30%. Consumers who plan on spending money on a major purchase should try their best to pay cash. If an all-cash payment isn't possible, consumers should apply as much cash as possible to the purchase, and put the rest on a credit card that has a high credit limit, a zero or low APR and a generous rewards program," Brown concluded.

Source

Import News About The Bank Of America Money Return® Visa® Platinum Plus® Credit Card

noreply@blogger.com (FeelessBalanceTransfer.com) — Mon, 10 Mar 2008 14:35:00 +0000

The terms and conditions of the Bank Of America Money Return® Visa® Platinum Plus® credit card have been modified; this card now charges a fee for any type of balance transfer: 3% of each transfer, with a minimum charge of $10.

The good news: Bank of America (BofA) still has 5 (five) credit cards to which you can transfer your non-BofA credit card balances at 0% intro APR, and pay no transaction fee on introductory balance transfers. On our feeless balance transfer page, you will also find cards from American Express and Pulaski Bank (you should only consider applying for a Pulaski Bank credit card if your credit history is spotless.)

The Credit Crunch

noreply@blogger.com (FeelessBalanceTransfer.com) — Sat, 23 Feb 2008 22:15:00 +0000

The credit crunch that's enveloped global financial markets has many consumer and business owners worried about the availability of consumer-friendly financing options. The crunch has caused many lenders to cut back in different ways, but 0% credit card offers are still numerous and often generous. Some consumers have complained of out-of-the-blue credit line decreases, but, from my own anecdotal observations, these situations appear to be few and far between. Keep your credit score high and your balances low and you shouldn't have to worry about sudden and inconvenient limitations on your credit. I'm still getting lots of great, unsolicited 0% offers in the mail, from accounts I already have open as well as offers to open new accounts. When these offers start drying up, I'll start to worry.

The Federal Reserve has been cutting short-term rates since mid-September of last year in an effort to ward of recession and help cure problems in the financial markets. Some Fed rate cuts have been very aggressive, and the central bank will likely cut rates again on March 18. These interest-rate decreases will get consumers and businesses into borrow-and-spend mode, and will also grease the wheels of the banking system and make it easier for Americans to find consumer-friendly loans and credit products.

When the Fed cuts short-term rates, the U.S. Prime Rate is one of the key rates that's lowered by extension. Since most variable-rate credit cards are indexed to Prime, this means for most people, the interest rate on their credit card debt is now -- or will be soon -- 2.25 percentage points lower than it was last summer. With the Fed likely to cut again in March, consumers who carry balances from month to month will end up keeping more of their hard-earned money, which is always a good thing.

Some credit card companies don't want to lower their rates when the Fed lowers the U.S. Prime Rate. Since these companies can't control the Prime Rate, whenever the Federal Reserve cuts the U.S. Prime Rate, these banks will counter by raising the margin that they add to Prime (if you have a variable-rate credit card then, most likely, your APR = U.S. Prime Rate + A Margin.) It's perfectly legal for them to do this (gotta' read those terms and conditions carefully) but, understandably, most consumers find this tactic underhanded. If the Fed is in a rate-cutting cycle, and you find that the APR on your credit card isn't declining steadily in sync with Fed actions, then call your credit card company and ask for an explanation. If you don't like what they have to say about it, then you may want to consider transferring your credit card balance to new a credit card at a new bank.

Bottom line: if you've experienced some manifestation of the credit crunch, don't worry: the pain is almost over.

Important News Regarding The Citi® Home Rebate® Platinum Select MasterCard®

noreply@blogger.com (FeelessBalanceTransfer.com) — Fri, 22 Feb 2008 12:33:00 +0000

If you're looking for a 0% balance transfer credit card, and you don't want to pay a transaction fee for transferring credit card balances, then the good news is that there are still plenty available. The bad news, however, is that the Citi® Home Rebate® Platinum Select MasterCard®, while still available, now charges a balance transfer fee for all balance transfers. This news is significant because the Home Rebate card was the last 0% "no fee balance transfer" card that offered an interest-free period of 12 months; currently, the all other cards offering free, 0% balance transfer deals have an interest-free of no more than 6 months.

Now don't get the wrong idea. The Citi Home Rebate card is still an excellent credit product offering great value, and you can apply for this card right now if you want to. You can still transfer a balance at 0% intro APR for 12 months, but you'll be charged a balance transfer transaction fee: 3% of each balance transfer with a minimum fee of $5. This card has been the #1 ranked credit product (based on both applications and approvals) at this website since the fall of last year.

I like the Home Rebate card because it has a very attractive rewards program that helps cardholders pay down their mortgage balance faster and build home equity. The American housing market probably won't improve until late 2009, so, for many, any help with getting ahead can make a real difference.

Confessions of A Customer Service Rep: A Must-Read for Anyone with A Credit Card

noreply@blogger.com (FeelessBalanceTransfer.com) — Fri, 04 Jan 2008 20:35:00 +0000

Pay all your bills on time, keep your credit score high and keep all your credit accounts immaculate, and you will be able to take advantage of just about all the 0% credit card offers available in the market. You can surf 0% offers and avoid paying interest on your credit card debt for years if you want, but only if you keep all your accounts in excellent shape.

Many consumers believe that the credit card companies are basically very greedy and will do anything to make money off their customers. This, in my opinion, is a very simplistic view of credit card companies. As I've told many friends and family members over the years: keep your credit score and credit accounts in top shape, and the credit card companies will work for you. It's true. That's why people who have tons of money in the bank still use credit cards. They pay their balances in full every month and therefore pay no interest and no fees, and they take advantage of the generous rewards programs that most credit card companies offer these days. Moreover, they get the added benefit of fraud protection, which means no worries about dishonest retailers, lost credit cards or charges that they didn't make. That, quite simply, is the bank working for you!

Today, I came across an excellent article on Consumerist.com titled 10 Confessions Of A Chase Customer Service Rep. In my opinion, this article is an absolute must-read for anyone and everyone who has a credit card. This article contains insider information that will make you a much better credit consumer. If you've ever wondered why you weren't able to get your way when you called your credit card company about e.g. waiving a fee or getting your APR lowered, then this article will educate you. If you've ever wondered why credit card companies will let you go over your limit instead of simply denying the charge, then this article will enlighten you. Read the article, and pass it on to your friends and family.

My favorite quote from the article:

"...If you use credit cards wisely, you can make the bank work for you, but instead, we see banks with profits in the billions of dollars every year."

Yup.

Update: There's a followup article here which contains responses to reader comments.

A Fond Farewell to A Great 0% Credit Card from Citi®

noreply@blogger.com (FeelessBalanceTransfer.com) — Sat, 01 Dec 2007 05:44:00 +0000

A moment of silence, please...

The good folks at Citi® have decided to suspend the Driver's Edge Platinum Select credit card. This is very disappointing for us, because this card offered one of the best 0% deals around, which was:

0% intro APR on the initial balance transfer for 12 months
No balance transfer transaction fee
No annual fee

There is now only one 0% balance transfer credit card that has the same excellent features listed above: the Citi Home Rebate Platinum Select Card. According to our research, all other 0% credit cards that are also "no fee balance transfer" cards have an interest-free period of 6 months or less.

The Fed is likely to cut short-term interest rates again next month in an effort to grease the wheels of America's financial markets and ward off a recession. While this is great news for anyone with a variable-rate credit card that's tied to the Prime Rate, overall credit market conditions may get worse before they get better. Was the Citi Driver's Edge card a casualty of the credit crunch? Maybe. Is the Citi Home Rebate card the next to go? Let's hope not!

Sometimes banks resurrect cards that have been suspended, so there is hope for the Driver's Edge card. Keep your fingers crossed. If the card makes a comeback, we'll blog about it here.

Credit Card Rankings for September, 2007

noreply@blogger.com (FeelessBalanceTransfer.com) — Fri, 05 Oct 2007 02:36:00 +0000

Here are the popularity rankings for the cards we recommend here at www.BalanceTransfer.cc for September, 2007:

The above-listed rankings are based on both applications and approvals that originated from this website.

The top 4 cards in the list offered 0% intro APR on introductory balance transfers, in conjunction with the option to make your first balance transfer for free (no balance transfer transaction fee.) All are great cards, but be warned that the Citi® AT&T Universal Saving and Rewards card now charges a fee for the initial balance transfer. Click here for a regularly update list of no fee balance transfer 0% intro APR credit cards.

The American Express® Blue card, number 5 on the list, is still quite popular, as the card still offers 0% intro APR on new credit card purchases for the first 15 months.

That's it for now. Stay tuned for the latest news.

I Willingly Paid A Fee for Transferring A Credit Card Balance

noreply@blogger.com (FeelessBalanceTransfer.com) — Sun, 30 Sep 2007 21:11:00 +0000

For obvious reasons, the most popular credit cards recommended at this site are those which offer a 0% intro APR on balance transfers for at least 6 months and don't charge a fee for transferring balances. So you may find it surprising that recently, I willingly paid a fee to transfer a balance, even though I could have easily qualified for a quality credit card that doesn't charge a fee for the privilege.

The reason I willingly paid a fee? Because, in my situation, it was worth it.

My business credit card debt was a bit high for my tastes (~$7,000) and, even though I could have paid the balance down to zero within 2 billing cycles, I wasn't interested in using up a large percentage of my free cash to clear the debt. The best solution, I thought, was to transfer the balance to a new business credit card with an attractive balance transfer offer and the best possible, fixed "goto" rate, then pay down the balance over 4 or 5 billing cycles.

I chose to transfer my business credit card balance to the Chase Premier Cash Rebate card, and I did so via an unsolicited offer I received in the mail! Critical offer details were:

0% Intro APR on new purchases, balance transfers and balance transfer checks for 12 months.
Purchase APR (the "goto" rate) of 9.99% fixed.
Balance transfer fee: 3% of transaction, with a minimum of $5 and a maximum of $99.

Here's why I chose this card:

I've been yearning for a business credit card with a low and fixed interest rate (my idea of low is below 10% APR) for many years now. I like business credit cards because they afford me an attractive level of anonymity when I do business and shop online, and because they really do a great job of building the credit rating of my business. I applied for a similar Chase business credit card about 2 years ago, and that application was rejected even though my personal and business credit rating was good. I was disappointed, but not totally surprised by the rejection, because banks are very careful when it comes to business credit cards (unsecured debt) that have a very competitive interest rate.
Even though I really don't like the idea of responding to unsolicited mail (the idea is anathema to me, almost as bad as responding to a spam email message, in my opinion), I had to make an exception for this card. As soon as I received the latest iteration of this particular offer (I get unsolicited business credit card offer from Chase about once per month!) I scoured the Internet to see if I could find the same deal online. I failed. The lowest goto APR for a Chase business card I could find online was 11%, and that was variable. I already have a business credit card from both Citi and Bank of America. I used to have a Capital One Business credit card, but I canceled it long ago because the credit line was wimpy ($500) and they wouldn't increase it. The Advanta Platinum Business Card with Rewards Options card was very, very tempting, with a 0% intro APR on balance transfers for 16 months, and a goto APR of Prime minus 0.26%, but the goto APR is variable, and there's no 0% intro APR for new purchases.

Bottom line: big credit card companies often reserve the very best offers for the solicitations they send out to well-qualified, prescreened consumers.

Actually, what I hate most about those wasteful credit card solicitations is the fact that they are the reason why identity theft is so prevalent these days. Many banks like to cast a very wide net so as to generate as much business as they can, but this tactic ends up making it easy for the crooks to get hold of our sensitive information. You can elect to opt out, of course, but I choose not to, because these offers are often the best deals around. So, yeah: I have a true love/hate relationship with unsolicited credit card offers. Of course, I have a very powerful and efficient shredder, so I can shred all the discarded offers 10 at a time.

I sometimes wonder: if my mailbox was on the street and easy to access, would I be wrestling with a serious identity theft situation right now? It's the stuff of nightmares!
After years of taking advantage of 0% deals in my never-ending quest to pay as little interest as possible, I now find myself loaded up with more personal credit cards than I need, and I don't want to add another personal card to my collection. Furthermore, canceling one or more of them would likely cause my personal credit score to drop, and I don't want that. I've worked hard to eliminate my personal credit card debt and simultaneously get my credit score to a happy place (my TransUnion score is 813 now) and I don't want to do anything to mess it up (I'm planning on buying some property in the not-too-distant future.)

So, as of right now, and thanks to a recent credit line increase on my Citi® Business card, I have $40,000 of unsecured credit available to me for business spending. Furthermore, I now have a business card with a low, fixed APR that I can use for all my temporary financing needs. So I am quite pleased...for now. Depending on how things go, I may signup for that sexy Advanta card in the future.

If you like 0% offers, then check out those unsolicited snail-mail offers at least once in a while. And make sure you have a good shredder.

New Card Added: The Home Advantage World MasterCard

noreply@blogger.com (FeelessBalanceTransfer.com) — Sat, 15 Sep 2007 17:12:00 +0000

Recently added a new Bank of America card: The Home Advantage World MasterCard® with WorldPoints® Rewards. This card is similar to the Citi® Home Rebate Platinum Select® MasterCard in that accumulated rewards dollars are used to pay down a cardholder's mortgage balance.

I like these two cards. As long as the cardholder can pay his or her entire balance in full at the end of each month, these cards can really help homeowners improve their mortgage situation and, by extension, their finances in general. By paying down a mortgage balance with extra payments, or in this case with accumulated rewards dollars, homeowners can:

Build home equity faster. This is crucial in the current U.S. real estate environment. The more equity you have in your home, the less likely you are to run into problems if at some point you want to sell, refinance, or get a second mortgage (a home equity loan or a home equity line of credit.) FYI: a number of experts have recently predicted that the American real estate environment won't improve until 2009.
Lower the total amount of interest that will be paid on the loan. If you take the example of a $250,000 mortgage with a 30 year term and a typical interest rate, the savings can be in the many thousands of dollars. It's amazing how these things add up over time!
Payoff a mortgage faster. This is optimal for anyone with a mortgage, but especially optimal for homeowners who plan on using the equity in their home to help fund retirement.

Currently, the fee for transferring credit card balances to the Bank of America Home Advantage MasterCard is 3%, with a minimum of $10 and no maximum. However, the card offers a 12 month, 0% Introductory Annual Percentage Rate (APR) on Balance Transfers and Cash Advance Checks.

With the Citi® Home Rebate card, you can transfer credit card balances at 0% Intro APR for 12 months, and, currently, you don't have to pay a balance transfer fee for the initial balance transfer.

Enjoy!

Credit Card Rankings for July, 2007

noreply@blogger.com (FeelessBalanceTransfer.com) — Sun, 05 Aug 2007 21:02:00 +0000

Here are the popularity rankings for the cards we recommend here at www.BalanceTransfer.cc for July, 2007:

The above-listed rankings are based on both applications and approvals that originated from this website.

As predicted here last month, the Citi® Upromise® Platinum Select® MasterCard® has snatched the #1 position. Citi also has the #2 position this month, with the AT&T Universal Rewards card. Both cards offered 0% intro APR on balance transfers for 12 months, with no fee charged for the initial balance transfer, during the month of July. But the Citi Upromise card just started charging a fee for transferring balances, so the card may not be as popular next month. I'm thinking that one of the following will be #1 next month:

The Citi Home Rebate Platinum Select Card (click here)
The Citi AT&T Universal Rewards Card (click here)
The Citi Driver's Edge Platinum Select MasterCard (click here)

All 3 cards have a great rewards, and, currently, all 3 offer 0% intro APR on balance transfers for one year, with no fee charged for the initial balance transfer.

That's it for now. Thanks for stopping by.

"No Fee Balance Transfer" 0% Intro APR Credit Cards from Bank of America

noreply@blogger.com (FeelessBalanceTransfer.com) — Sat, 14 Jul 2007 02:22:00 +0000

If you like doing business with the Bank of America, and you like "no fee balance transfer" 0% intro APR deals, then you are going to like today's news.

In order to keep all the information and recommendations on this website current and accurate, I regularly surf through the terms and conditions of the many credit cards offers listed on this website's pages. During my most recent rounds, I discovered that the Bank of America Platinum Plus Visa® card now offers a 0% introductory annual percentage rate (APR) on purchases and balance transfers for 6 months, with no balance transfer fee. A handsome offer -- no doubt -- so I immediately added this card to the site's No Fee Balance Transfer page.

I continued to poke around the Bank of America offers and found more credit cards with reconfigured terms and conditions, many of which now offer the same six-month 0% intro APR on purchases and balance transfers, with no fee charged for transferring balances. The cards are:

The Financial Rewards Visa® Platinum Plus® card

The Money Return Visa Platinum card

Efectiva™ Visa Platinum Plus card

MilesEdge™ Visa card

PetRewards® Visa card

I'll keep poking around and update this list if I find any more. Enjoy!

Credit Card Rankings for June, 2007

noreply@blogger.com (FeelessBalanceTransfer.com) — Tue, 03 Jul 2007 23:45:00 +0000

Here are the popularity rankings for the cards we recommend here at www.BalanceTransfer.cc for June, 2007:

The above-listed rankings are based on both applications and approvals that originated from this website.

The Discover More family of credit cards retained the #1 spot last month, even though Discover recently added a fee for transferring credit card balances to any Discover More card. Balance transfer fees can be quite the buzzkill, but with Discover More, the balance transfer fee is capped at $75, so transferring a balance is still worth it if the transferred balance is a significant sum. The Discover More cards are still attractive because the 0% intro APR period for both new purchases and transferred balances is still 12 months, while many other competing credit cards only offer an interest-free period of 6 months.

If I was a betting man, I would bet that the Citi® Upromise® card will capture the #1 spot this month (July.) Why? Great rewards (the easier it is to save for your kids' college education, the better!), no balance transfer fee and a 0% intro APR for 12 months on transferred balances. Stay tuned for next month's report!

New Card Added: The Clear from American Express Card

noreply@blogger.com (FeelessBalanceTransfer.com) — Mon, 18 Jun 2007 18:36:00 +0000

We've recently added a new credit card to the list of American Express credit cards we recommend here at BalanceTransfer.cc. It's the Clear from American Express® card, and it offers 0% Intro APR on new credit card purchases for 12 months. The APR for balance transfers is 4.99%, with no balance transfer fee.

Yup, it would be great if you could transfer balances to Amex Clear at 0%, but 4.99% isn't that bad, considering the fact that it's 4.99% for the life of the transferred balance. Right now, the U.S. Prime Rate is 8.25%, so transferring a balance to this card can save a lot of people out there some serious cash (the APR for many credit cards in the American market is the U.S. Prime Rate plus a margin.)

The main selling point of this card is that there are no fees: no over-the-limit fees, no annual fee, no late fees, no balance transfer fees and no cash advance fees. As quoted from the American Express website:

"No fees of any kind."

However, if you are the type of person who pays their bills on time, all the time, then this "no fees" marketing strategy is almost meaningless, since a person like you is very likely to avoid such fees in first place. Of course, if you are the sort who sometimes misses a payment, or you go over your credit limit every once in a while, then you may be very attracted to the fact that the Clear card has no fees.

Though American Express won't charge you any fees for a late payment, they will report any late payments to the credit bureaus. Keep that in mind. Furthermore, if you are late with a payment more than once within a 12 month period, the folks at Amex may raise the APR associated with your account.

Another characteristic about the Clear card that should be noted: every year, you get access to a "user-friendly" credit report and credit score. A great feature -- no doubt -- but I failed to find out which credit score and credit report they're offering: is it TransUnion, Experian or Equifax? Or is it some other proprietary credit score and report? Hmmmmm... Please post a comment if you know that answer. Thanks!

Credit Card Rankings for May, 2007

noreply@blogger.com (FeelessBalanceTransfer.com) — Mon, 04 Jun 2007 15:45:00 +0000

Here are the popularity rankings for the cards we recommend here at www.BalanceTransfer.cc for May, 2007:

The above-listed rankings are based on both applications and approvals that originated from this website.

The Discover More family of credit cards is still the top choice at this website, but the Citi® Upromise® , the Citi Home Rebate Platinum Select MasterCard® or the Citi Driver's Edge® Platinum Select® credit card may soon steal the #1 spot away from Discover, because with these three Citi cards, you can still transfer a credit card balance from a non-Citi credit card, pay no interests on the transferred balance for 12 months, and pay no balance transfer transaction fee. The Discover More cards still offer good value, but you now have to pay a transaction fee to transfer balances to any Discover More card.

The American Express® Blue card is still quite popular, as the card still offers a highly attractive 0% Intro APR on new credit card purchases for 15 months.

That's it for now. Please take a moment and vote in our credit card balance transfer online poll. Thanks!

Credit Card Rankings for April, 2007

noreply@blogger.com (FeelessBalanceTransfer.com) — Fri, 04 May 2007 02:57:00 +0000

Here are the popularity rankings for the cards we recommend here at www.BalanceTransfer.cc for April, 2007:

The above-listed rankings are based on both applications and approvals that originated from this website.

Are you wondering what happened to the Discover Platinum Card? Well, it's still there, at the number one spot. The "Discover Platinum" family of credit cards was recently renamed the "Discover More" cards.

New Page Featuring Specialty 0% Intro APR Credit Cards

noreply@blogger.com (FeelessBalanceTransfer.com) — Fri, 20 Apr 2007 17:13:00 +0000

We've added a new page featuring specialty credit cards that offer zero percent introductory APR. So, if you're into zero APR credit card offers, and you're also into fishing, wildlife conservation, auto racing, poker, investing, football (NFL), baseball or Quixtar, then you should check out this page.

The Popular Discover "Platinum" Card Is Now The Discover "More" Card

noreply@blogger.com (FeelessBalanceTransfer.com) — Thu, 05 Apr 2007 17:13:00 +0000

There's some important news to report about the Discover Platinum card.

For many months now, the Discover Platinum family of credit cards has been the most popular choice at this website, based on both applications and approvals. The news: the good folks at Discover Financial have recently decided to rename the Discover Platinum Card and the Discover Gas Card.

The "Discover Platinum Card" is now the "Discover More Card"
The "Discover Gas Card" is now the "Discover Open Road Card"

The features are essentially the same, these cards just have new names.

The following cards have also been renamed:

The Discover Platinum American Flag Card is now the Discover More Card - American Flag.
The Discover Platinum Clear Card is now the Discover More Card - Clear.
The Discover Platinum Wildlife Collection Card is now the Discover More Card - Wildlife Collection.
The Discover Platinum Sealife Collection Card is now the Discover More Card - Sealife Collection.
The Miles Card from Discover Card is now the Miles by Discover Card (Discover Financial Services made some minor changes to the features associated with the Miles Card. However, the card's best feature, i.e. 0% Intro APR on Purchases and Balance Transfers for 12 months, remains!)

Credit Card Popularity Rankings for March, 2007

noreply@blogger.com (FeelessBalanceTransfer.com) — Tue, 03 Apr 2007 23:42:00 +0000

Here are the popularity rankings for the cards we recommend here at www.BalanceTransfer.cc for March, 2007:

Just a reminder: the above rankings are based on both applications and approvals for the credit cards we recommend at this website. The information can be very useful for anyone shopping for a credit card.

The Discover Platinum card once again tops the lists, which is no surprise considering the benefits.

The Citi® Upromise® card is likely to become a lot more popular in the coming months, not only because using the card is a great way to start saving for college, but also because you can now transfer your non-Citi credit card balances to the Citi Upromise card and pay no interest on the transferred balance for 12 months, with no balance transfer fee. Good stuff!

Executives from Chase, Citi and Bank of America Testify Before The U.S. Senate

noreply@blogger.com (FeelessBalanceTransfer.com) — Thu, 08 Mar 2007 03:49:00 +0000

A lot of folks out there like to bash credit card companies for their high fees and draconian penalties but I don't buy a lot of it, mostly because I've been able to surf 0% offers and enjoy interest-free loans for years now, which has enabled me to do great things from both a business and personal perspective. Bottom line: if you're a responsible borrower then the banks will treat you accordingly. It's really that simple. And I'm writing from experience: I am now a very responsible borrower, and, many years ago, I was the exact opposite (and then some!)

I was watching Bank of America's Bruce Hammonds, Citigroup's Vikram Atal and Chase Bank's Richard Srednicki testify before the U.S. Senate Committee on Homeland Security and Governmental Affairs on C-Span today. The hearing's title was "Credit Card Practices: Fees, Interest Rates, and Grace Periods." It was a very good discussion and I'm glad I caught it. Lots of hard questions were asked, and I learned quite a bit from the responses, comments and complaints made by hearing participants.

I was actually quite surprised to find myself on the side of the banks more often than I was against them. Four industry practices I don't like:

1) I'm very much against the marketing of credit cards to high school and college students. My credit woes (which are now ancient history) began in college when I lost my head with a credit card. I just learned today that the credit card companies pay schools for the right to shower kids with credit card offers. Should a kid with no experience with finances, working (maybe) a part-time job at minimum wage have a credit card? I don't think so! A college or high school student should have a prepaid debit card that can be monitored by parents online. Yup. Of course, the credit card companies should not shoulder all the blame: by accepting money from banks and credit card firms, colleges and universities are complicit with this dubious practice. Not good.
2) The way the credit card companies calculate the so called "grace period" needs to be fixed. There are credit consumers out there who pay their balance in full each and every month and still get stuck with interest charges because they don't really understand how the grace period rules work. Bottom line: the grace period rules are confusing, and industry leaders need work on improving the way grace periods are structured.
3) I understand the reasoning behind Universal Default, but the credit card companies have taken it too far. Credit card companies should either scale it back, or get rid of it altogether (see below for some positive news related to Universal Default.)
4) The use of the term "pre-approved." Nonsense. Some time ago I had an application declined, and it was initiated from a so-called "pre-approved" credit card offer. The experience really boiled my blood, especially because any rejection can cause your credit score to decline.
5) In my opinion, "fixed" should mean fixed, all the time, every time. Is that too much to ask? Under current federal law, a "fixed" annual percentage rate (APR) on a credit card means that the credit card company can change the so-called "fixed" rate as long as they give you 15 days notice of the change. To be fair to consumers -- especially those who are new to credit cards -- credit card companies should instead use the term "conditionally fixed" or "provisionally fixed."

A guy named Wesley Wannemacher, who had money problems back in 2001, testified about how a $3,200 credit card debt ended up costing him a total of $6,300, and, according to last month's credit card statement, he still owed $4,400! Yikes! Wannemacher was charged an over-the-limit fee 47 times. Chase Bank's Richard Srednicki apologized to Wannemacher for the experience, and pledged to have Wannemacher's credit card debt forgiven. Yup: he actually apologized. Now that was something to behold.

OK, now I present the positive side, the way I see it:

O% Intro APR offers: love 'em!
Credit card debt is unsecured! even if you decide to totally blow off your credit card debt, no one will come and take your home, your car, your first-born child, etc.
Fraud protection: with most credit cards out there, if you get ripped off and you paid with a consumer credit card, you can dispute the charges (chargeback.) Furthermore, If someone gets hold of your credit card and goes crazy, in most cases you won't be responsible for those charges.
The Internet makes it easier than ever to pay your bill on time. Even if you don't have an Internet connection, you can always stop by your local library and get online from there. And the industry should be commended for instituting payment tools like scheduled payments, automatic payments and email alerts (I use them all), so even the laziest of the lazy need not worry about late payments.
Competition and regulation keep the banks and credit card firms in check. Don't like the terms with one card? Switch to another!
No one is forced to open a credit card account!
Convenience and Tracking: Who wants to carry wads of cash around all the time? Plus, it's much easier to track your spending when you use a credit card.
Compared to 20-30 years ago (yes, I'm quite old!), credit is very easy to get today. Furthermore, interest rates were in the 20% range for everybody back then! And the fees! How many credit cards (credit cards, not charge cards) do you have in your wallet that charge and annual fee? I'm willing to bet none.

Individuals with credit card accounts who run into serious financial dire straits should keep in contact with each credit card company and workout a payment plan. I think a lot of people who run in to trouble with their finances get scared and try their best to hide from their creditors. Big mistake!

It's my opinion that credit card offers will only improve over time. Just last week, the folks at Citigroup announced that they won't play the Universal Default game anymore. Check out this clip from a recent press release:

"...Citi is eliminating the industry practice of increasing interest rates for individual cardholders due to their defaults on financial commitments with other parties, sometimes known as “universal default”. Until now, Citi has given customers the right to opt out of any such increase. But with this announcement, Citi is going even further, abandoning the practice altogether for all customers.

Citi is also eliminating “any time for any reason” increases to the rates and fees of its customers’ accounts. Traditionally, credit card issuers have taken the position that they can increase the rates and fees of a cardholder’s account at any time for any reason; for example, to respond to general conditions in the financial markets. As a result of the new policy, Citi will not voluntarily increase the rates and fees of the account until the card expires and a new card is issued (typically two years).

Now, the only reason the rates and fees will increase before the card expires is if a customer pays Citi late, exceeds the credit limit or pays with a check that bounces. When the interest rate on the card is linked to the prime rate, the rate would change only as the prime rate moves up or down..."

Kudos to you, Citi, for moving in the right direction.

Bank of America does not today, and has not in the past, engaged in the practice of Universal Default. Kudos to you, BofA.

The folks at Discover Card recently agreed to remove the Universal Default clause from the terms & conditions related to their credit card offerings. A gold star for you, Discover.

Double-cycle billing is one way that you can end up paying interest on charges even though you've been paying your balance in full each and every month. The folks at Chase recently announced that they won't engage in the practice of double-cycle billing anymore. They also announced that once an account is assessed an over-the-limit fee, Chase will stop adding new over-the-limit fees after 90 days.

Some interesting numbers:

In 2006, Chase Card Service made $3,206,000,000 in profit, accounting for 22% of Chase's overall earnings.
Profitability for large credit card issuers was in the 3.6% to 4.1% range between 2003 and 2005.
Right now there are 6,000 credit card issuers in the United States.
41% of credit card account holders pay their balance in full each month.