0% Credit Cards

Slate: A New 0% Credit Card from Chase

noreply@blogger.com (FedPrimeRate.com) — Tue, 03 Nov 2009 16:16:00 +0000

The government continues to report positive macroeconomic news. Yesterday, the Institute for Supply Management (ISM) released its Purchasing Manager's Index (PMI) for October 2009. The PMI came in at 55.7%, better than what Wall Street economists were expecting, and better than the September figure. For the PMI, any figure above 50% is a strong indication that the American manufacturing sector is expanding.

Though an economic recovery appears to be taking hold, too many Americans are still dealing with various forms of oppressive debt, a home mortgage balance that's higher than their home's value, and job insecurity. In fact, earlier today Johnson & Johnson, a component of the Dow Jones Industrial Average (DJIA) and number 29 on the Fortune 500, announced that the company will be cutting 7,000 jobs (that's between 6% - 7% of its workforce.) National unemployment, already at 9.8%, will almost certainly rise during the fourth quarter and into Q1 2010. A jobless economic recovery? Yes: we're in it right now.

The whole world is relieved that the subprime debt-inspired credit crisis, which precipitated the worst recession since the early 1980's, and which brought the American financial system to its knees, has almost run its course. The liquidity maelstrom of 2008 and 2009 prompted the banks which survived the subprime debacle to cutback on all kinds of loans, including credit cards.

But financial markets are on the mend, as evidenced by low LIBOR rates, a healthy TED spread and the return of generous 0% intro APR credit cards.

Credit cards that offer a 0% intro APR period of at least 12 months all but disappeared from the market last year. But they're back. JPMorgan Chase Bank, commonly known simply as Chase, recently revealed a new credit card called Slate. Here are the vitals on Slate:

0% introductory APR on purchases for 12 billing cycles
0% introductory APR on transferred balances for 12 billing cycles
Balance transfer fee of 3% of each transaction, with a minimum of $5
NB: The 0% intro APR is reserved for those who qualify for "Elite" or "Premium" pricing. Those who can only qualify for "Standard" pricing cannot take advantage of any interest-free introductory period with this particular card.
For those who qualify for Elite pricing, the "goto" rate (also known as the ongoing rate) is 13.24% (the U.S. Prime Rate plus 9.99%); for Premium pricing it's 17.24% (Prime plus 13.99%.) For Standard pricing, the introductory and goto rate is 22.24% (Prime plus 18.99%.)

If you have a good FICO® credit score (above 700), you will probably qualify for either Elite or Premium pricing.

Slate is a very timely credit card: it has arrived in time for the fast approaching Christmas shopping season. With Slate, cardholders can do their holiday shopping and have plenty of time (12 billing cycles) to pay their credit card balance down to zero without having to worry about interest charges.

The goto rate with the Slate card, however, is relatively high when compared to consumer-friendly credit card offers that were available before the global credit crisis (likely a direct result of new rules included in the Credit Card Act of 2009.) For the consummate borrower who qualifies for Elite pricing, the rate charged on any balance remaining after the interest-free, introductory period ends is Prime (currently 3.25%) plus 9.99%, which translates to 13.24%.

But the U.S. Prime Rate is as low as it can possibly go. As the economy heats up, it will certainly rises, and it will likely do so at a relatively fast clip as the Fed works to contain future inflation. There is no way of knowing exactly how high the Prime Rate will be a year from now, but if we plug in the median U.S. Prime Rate -- 8.75% -- then we get a rate of 18.74%, which anyone would agree is not consumer-friendly. In fact, any rate above 15% would be too much of a financial burden for the typical credit card consumer.

That's why we recommend Slate for anyone who can pay their balance down to zero over 12 months or so, which shouldn't be that hard to do (no need to go crazy with the Christmas shopping!)

As always, your comments are welcome and appreciated.

Will 0% Credit Cards Make a Comeback?

noreply@blogger.com (CCF) — Sun, 01 Nov 2009 20:25:00 +0000

No one can predict the future, but if our economic recovery continues on its current course, we most likely can expect 0% credit card deals to stage a comeback.

The Past
When our economy hit its low point in 2008, zero percent offers for balance transfers virtually disappeared from the market. Just months before that, there were a plethora of interest-free offers available, many of them being for 12 to 15 months. As our country’s financial health deteriorated, almost every bank terminated these incredible offers. Instead, they were replaced with promotional rates only valid for three to six months.

The Future
Today, we are seeing positive signs that this trend is now reversing. During the third quarter of this year, issuers like Discover gradually began to sweeten their promotional offers. More and more credit card deals for longer promotional periods have been popping up across the net. Unfortunately some issuers, like American Express and Bank of America, have been slower to follow suit.

Assuming we continue on the road to recovery, these incentives should continue to become more common. Initially, they will probably only be made available to those with average to above-average credit. Once unemployment and foreclosures begin to ease up, banks may extend these offers to those with below-average credit, too.

As the percentage of bad debt goes down, lower interest rates on credit cards should follow. However, it’s important to note that most have APRs which are now linked to the prime rate; if that were to increase significantly, then rates may go up.

Pulaski Bank and IberiaBank Credit Cards: Great Products, But We Can't Recommend Them Anymore

noreply@blogger.com (FedPrimeRate.com) — Wed, 01 Jul 2009 01:58:00 +0000

We are no longer recommending IberiaBank or Pulaski Bank credit cards. Here's why:

The two Pulaski Bank no fee balance transfer 0% credit cards that we were recommending on the www.BalanceTransfer.cc website are no longer available. The Pulaski Bank & Trust Company owns IberiaBank, so I'm guessing that the company decided to focus on the IberiaBank brand. The recently discontinued Pulaski Bank cards were very similar to IberiaBank cards.
The three IberiaBank cards, which were the only 0% intro APR, no fee balance transfer credit cards we were recommending, are still available, but the terms and conditions associated with these cards were recently changed. All 3 cards now charge a 2% fee on balance transfers, and, for all 3 cards, the "goto" APR's were raised (the "goto" rate is the APR your balance would be subject to once the introductory period ends.) And that's not all: the introductory APR for all 3 cards was raised from 0% to 1.99%.
For the three IberiaBank cards we were recommending, we referred hundreds of applications, and, as of today, all those applications resulted in zero approvals (for June.) The IberiaBank Visa Classic cards, which required a "good-to-excellent" credit rating, is now a card which requires an "excellent" credit rating. In fact, now all IberiaBank cards require an excellent credit rating. For us, this is clear evidence that these cards are not worth recommending, since the vast majority of applicants would have to face a declined application.

To be clear, this is not to say that IberiaBank is not a good credit card bank. In fact, we applaud the bank's tight lending standards and non-automated review process. However, we feel that the bank's standards are a bit too tight, plain and simple. That's just our opinion. If you are interested in applying for an IberiaBank card, please feel free to follow this link.

Our no fee balance transfer page still contains two American Express cards, but these cards don't offer 0% intro APR. The intro APR for the Amex TrueEarnings® Credit Card from Costco is 1.99%, and this rate lasts for six months. For the Amex Starwood Preferred Guest® card, the intro APR period is also 6 months, but the intro APR is 2.9%. Of course, we have absolutely no problem recommending American Express products, since the company's customers have ranked Amex above its competitors two years in a row. O% intro APR is nice, but so is dealing with a bank that won't treat you like a sucker.

Stay tuned for the latest updates.

Discover Releases A Biodegradable Version of The Discover More Card

noreply@blogger.com (FedPrimeRate.com) — Fri, 15 May 2009 13:13:00 +0000

While campaigning for the White House, Senator Barack Obama promised America that he would create 5 million "green jobs" over the next ten years. Following through, President Obama tagged $60 billion of stimulus cash for investment in clean energy and technologies. For some perspective: the Obama administration has committed more money to foster America's green economy than the gross domestic product of Luxembourg.

Complaints about all the planned green spending have been few.

It's clear that green movement is no passing fad, so many companies are trying to figure out how to capitalize on America's burgeoning love for and commitment to all things green. Discover Financial Services' (DFS) answer: a new version of the popular Discover More card that's biodegradable.

The Biodegradable Discover More Card is made from a special PVC plastic that's designed to safely breakdown when exposed to conditions similar to those found in landfills.

Card features and benefits include:

0% introductory APR on new purchases and balance transfers for 6 months.
After the introductory honeymoon is over, the new purchases APR is 10.99% - 18.99%, depending on the cardholder's credit quality. For transferred balances, the "goto" rate is 10.99%.
5% Cashback Bonus® in categories like travel, home improvement stores, department stores, gas, restaurants, pet stores and many more
Up to 1% unlimited Cashback Bonus® on all other purchases
5% to 20% Cashback Bonus® through our exclusive online shopping site
No annual fee

For each transferred balance, the fee is 3%, with no minimum and no maximum.

No Fee Balance Transfer 0% Credit Card from Iberiabank

noreply@blogger.com (FedPrimeRate.com) — Wed, 22 Apr 2009 16:27:00 +0000

Considering that banks can borrow at close to zero percent, consumer and business loan products aren't very consumer-friendly. Thankfully, certain smaller banks are still offering great credit deals, like Iberiabank's Visa Classic and Gold cards.

Since the height of the global credit crunch during the third quarter of 2008, the federal government has been doing all it can to get banks to lend money to both consumers and businesses. Despite the fact that large, American bank holding companies (BHC's) have been sitting on massive piles of cash for some months, and despite being prodded by politicians to get credit flowing through the economy, many Americans are finding it difficult to find business and student loans, credit cards and other loan products at reasonable rates. Banks are able to borrow at rates below 0.25%, but they aren't passing these favorable rates onto credit-starved individuals and organizations. Thankfully, there are some consumer-friendly credit products on offer from a limited number of top-quality, U.S.-based financial institutions, like Iberiabank. Of all the 0% credit cards available in the current, credit-crunch and recessionary lending environment, the Iberiabank Classic Visa® credit card is the best, featuring a new purchases rate of Prime plus 3%, no annual fee and zero percent introductory APR on transferred balances with no balance transfer fee.

The Federal Reserve has been buying U.S. Treasury securities in an effort to lower the return on government bills, notes and bonds. Lower yields makes these securities less attractive to institutional and individual investors, which, in turn, should cause capital to shift from the safety of government debt to riskier investments like stocks and corporate bonds. This strategy has another very significant advantage: buying long-term Treasuries will keep mortgage rates low. We know that at least one prong of the Fed's plan has worked, as many well qualified consumers are now able to get new mortgages -- or refinance their current home loans -- at rates below 5%. But the spread between the Fed's short-term rates and the rates on short-term credit products like credit cards is still relatively high. That's because:

the secondary market for credit card receivables completely dried up last year, and
many banks are still trying to make up for losses related to the unnumbered subprime loans and failed derivative investments made during the recent housing/credit boom, and
banks are concerned about the rising rate of delinquencies and defaults as the current recession continues to stoke the unemployment rate higher.

At the end of 2008, the Fed created the Term Asset-Backed Securities Loan Facility (TALF), a program that will lend up to $1 trillion to jumpstart the secondary market for all types of receivables back to life. But TALF will take time to work. Until then, big banks will have to keep credit card receivables on their own balance sheets, and credit card interest rates from these banks will remain mediocre at best and unfavorable at worst.

How Is Iberiabank Able to Offer Such A Great Free Balance Transfer Credit Card?

A good question, and the answer is quite simple: because this particular bank has always had high lending standards, even when other, much larger banks were making loans to just about anybody who wanted one. Consumer who don't mind giving up the convenience of an instant approval and who are willing to provide at least some proof of their income can enjoy great features like:

No fees on introductory balance transfers
Zero percent introductory APR on transferred balances for six months
No annual fee
Interest rates as low as Prime plus 3 percentage points

The highly recommended Iberiabank Visa Classic credit card offers the best rates, but the card doesn't have a rewards program. The Iberiabank Visa Gold card has slightly higher rates associated with it (qualified applicants can enjoy Prime plus 4 percentage points), but the tradeoff is that it comes with a decent cash-back rewards program. Prime plus four percent is still an excellent rate is today's credit environment.

Then there's the Iberiabank Visa Platinum card, which also has a top-tier interest rate of Prime plus 4 points. Like it's Classic and Gold cousins, the Platinum card is a great free balance transfer credit card. Platinum offer benefits like travel accident insurance and a unique Scorecard® Bonus Point rewards program. So, why would we recommend the Classic and Gold cards before recommending Platinum? Here are the reasons:

The Platinum card requires applicants to have a spotless (excellent) credit rating, which means, in all likelihood, most applications will end up in the declined pile.
The Gold card has a cash back rewards program, which we feel is the best type of credit card bonus, and the credit requirement for the Gold card is good-to-excellent, which translates to fewer applicants having to deal with a rejection.
The Classic card has the best interest rates for those who don't care about rewards. With Classic, even the cash advance rate is the best we've ever seen at Prime plus 7 points. How many cards exist in the American market where you can get a cash advance at 10.25%? Most cards charge at least 25% for the cash advance privilege. Using a credit card to get a cash advance is almost never a good idea, but for anyone who might have to use one in an emergency, it's good to know that this card won't abuse the cardholder with exploitative rates.

Over time, TALF will help restore the secondary receivables market, which in turn will help to drive down rates associated with both consumer and business loan products. Business credit cards, which have all but disappeared from the U.S. market, will likely make a comeback within the next few quarters. Until then, American consumers who got used to cheap, easy and convenient loans products from the largest American BHC's should look to often ignored and soundly managed smaller banks, and their local credit unions, for consumer-friendly loans and credit cards.

Mourning the Demise of Three American Express Credit Cards

noreply@blogger.com (FedPrimeRate.com) — Wed, 01 Apr 2009 17:46:00 +0000

As a credit card bank, we like American Express a lot. Why? Because the company consistently offers excellent customer service, and their cards typically have very consumer-friendly terms and conditions associated with them (this report says it all.)

So we are sorry to report that three popular American Express cards are no longer available. The cards are:

Blue from American Express®
Blue Cash® from American Express
Blue Sky from American Express®

These cards were great, because they each offered 0% intro APR on new purchases for 12 months, and each featured a generous rewards program. Introductory balance transfers were not free (2.99% for 12 months) but, on the plus side, you didn't have to pay a balance transfer transaction fee.

These cards may return, but there's no way of knowing if or when.

There are still two Amex cards to which you can transfer a credit card balance and pay no balance transfer fee. These are:

The TrueEarnings® Credit Card from Costco and American Express, which offers:

An introductory balance transfer APR of 1.99% for the first 6 months of Cardmembership, as long as the transferred balances post to your account during the first 30 days of Cardmembership and
0% Introductory APR for Purchases for the first 3 months of Cardmembership.
Click here

The Starwood Preferred Guest® Credit Card from American Express, which offers:

An introductory balance transfer APR of 2.9% for the first 6 months of Cardmembership, as long as the transferred balances post to your account during the first 30 days of Cardmembership and
2.9% Introductory APR for Purchases for the first 3 months of Cardmembership.
Click here

New Balance Transfer Offer with My Citi Dividend Platinum Select Card

noreply@blogger.com (FedPrimeRate.com) — Thu, 26 Mar 2009 22:39:00 +0000

Since the peak of the credit crisis back in the fall of last year, I hadn't seen any favorable balance transfer offers from credit card accounts I already have open. Bank of America (BofA) has been sending me lots of offers, but each of these BofA offers left a bad taste in my mouth. BofA wants me to pay a balance transfers fee and pay finance charges on the transfer fee. No thanks!

I'm happy to report that Citi® is now offering a somewhat decent balance transfer offer with my Dividend Platinum Select® card. Here it is:

Back in early 2007, before the credit crunch, I used to login to this Citi account and I'd be presented with at least 4 unique offers. During the roughest part of the credit crisis, however, the balance transfer section of my online account management interface contained no offers. Today I found one offer: 0% intro APR for 6 months on transferred balances, with a $75 cap on the balance transfer transaction fee. $75 is not very consumer-friendly, but when you consider that many other balance transfer deals have no cap on the transfer fee (like with the Citi® Platinum Select® MasterCard®), it's not so terrible. Will I take advantage of this offer. Nah.

Of course, we are still recommending the Iberiabank Visa Classic card above all other cards in the current market.

We are not recommend any Citi credit cards at the www.BalanceTransfer.cc website now, for the simple reason that we believe Citigroup is a zombie bank. However, if you really must have a Citi card, visit the www.citicards.com website and you can browse all the personal, business, secured, airline, gas, student and store-branded cards they have available.

We may recommend Citi cards at some point in the future, if Citi reorganizes and becomes a responsible and commercially sound retail bank.

No Fee Balance Transfer

noreply@blogger.com (FedPrimeRate.com) — Wed, 25 Mar 2009 16:01:00 +0000

0% Intro APR credit cards that don't charge a fee on introductory balance transfers, and that are being offered from reputable American banks, are the best credit card deals in the American market today. This article offers some timely and useful advice for those who are looking for the best possible 0% credit card deal.

Caveat #1: Make sure to note the interest rate that you'll pay once the interest-free period ends (this is sometimes referred to as the "go to" rate.) If you end up paying a significantly higher interest rate on your balance once the interest-free period ends, then you could end up with a much worse deal than you had before. So pay attention to all the numbers and, if you can, payoff your entire credit card balance once the interest-free period terminates.
Caveat #2: Read the fine print carefully. Many zero percent balance transfer deals offered these days come with a catch: if you make any new purchases on the card to which you are transferring your balance(s) during the interest-free period, the annual percentage rate (APR) on those new purchases can be very high, as much as 29%! What's more, any payments you make toward the new card will very likely be applied to the lower interest, transferred balance(s) first, further exacerbating any lack of discipline on your part. So be careful. Balance transfer deals are a great way to save a lot of money in the long term, but if you have to make any new purchases, you are better off using cash, a debit card or a prepaid credit card.
Caveat #3: Be careful when using convenience checks! With most credit cards, those convenience checks that you often find packaged with your credit card statement can get you into real trouble if you are not careful. With most cards, use of those convenience checks is tantamount to a cash advance, and credit card cash advances always have very high interest rates associated with them. Some credit cards will give you a favorable interest rate if you use their convenience checks to transfer balances from other credit cards. But read all the fine print carefully. Make sure that you understand exactly what you are getting into before using any convenience checks.

OK, now for the good news: certain credit card companies will send you blank checks that you can use with their 0% APR balance transfer offer. These checks are really great because you can use them for anything you like. Many money-savvy consumers use these 0% balance transfer convenience checks as a way of getting an interest-free loan, but you can also use them to open a high-yield savings account or purchase a Certificate of Deposit*. Just remember: once the 0% intro APR period ends, interest charges will start to accrue on that "loan," so it's best to return any money that you intend to use with a zero APR convenience check back to the credit card account once the interest-free period terminates.

Of course, all convenience checks have their limits, usually equal to the credit card account's credit limit.

If you are not 100% sure as to whether or not the checks you'll receive with your new credit card are in fact 0% balance transfer convenience checks, then take 5 minutes and call the credit card company to find out (NB: I think it's always a good idea to write down the name of the representative you speak with just in case he/she makes a mistake.)
Caveat #4: Don't overdo it! It doesn't matter if you are approved or rejected: too many applications for credit within a brief time span can result in a downgraded credit rating. Look for balance transfer deals that offer at least a 6 month intro APR on balances transferred (12 months or more is better) so that you don't end up transferring balances too often.
Caveat #5: Before you submit an application for a credit card balance transfer, make sure that the credit card companies that you are dealing with are in fact different. If you try to transfer a balance from one credit card to another and both credit cards are owned by the same bank, then you application will almost certainly be rejected. If, for example, you try to transfer a balance from a Pulaski Bank Visa® card to a IberiaBank credit card, your balance transfer application will most likely be rejected because both credit cards are issued by Pulaski Bank. This might not seem like a big deal, but remember: Inquiries into your credit report can have a negative effect on your credit rating, especially those inquiries that result in any kind of rejection.
You can usually consolidate two or more credit cards that have been issued by the same bank into one aggregate credit card, with the resulting aggregate credit card having a credit limit equal to the sum credit limits of the consolidated cards. You should call your credit card company for more information about consolidating credit cards.
Caveat #6: Make sure that the credit card account to which you'll be transferring your balance(s) has a credit limit that won't get you into trouble with fees. For example, if you are planning to transfer a total of $5,000 via a zero percent intro APR offer, the credit limit of the receiving credit card account should have a credit limit that's above $5,000. Some zero APR offers charge a fee for transferring balances, and if you don't have enough breathing room, the credit card company may smack you with an over-the-limit fee once the balance transfer transaction fee is added to your account (of course, you first priority should be to find offers that don't charge a fee for transferring balances.)
Caveat #7: Sometimes, a balance transfer offer is so good that even with a balance transfer fee, it's worth doing a balance transfer to the card, especially if you have high balances to transfer. However, watch out for these two pitfalls:
- A decent balance transfer offer that includes a transaction fee will cap the fee at a reasonable level, usually between $75 and $99. If the deal has no cap, then you may end up regretting the decision to transfer your balance(s) when your statement arrives.
- Read the fine print and find out if the balance transfer fee is subject to finance charges. Believe it or not, with certain deals out there, you could end up paying finances charges on a balance transfer fee. Bottom line: there are still a few consumer-friendly, 0% intro APR balance transfer offers available in the American market, so there's no reason to signup for a deal in which you'd be paying interest on a balance transfer transaction fee.
Caveat #8: This may seem obvious, but make sure you pay all your bills on time -- not just your mortgage and credit card bills: you need to stay on top of your household utility bills as well (cable, phone, natural gas, etc.) Bottom line: the banks and credit card companies will offer the best 0% deals to customers with the best credit scores, plain and simple. Having a high FICO® credit score (shoot for a FICO score of 720 or higher) will also minimize the risk of having your credit application rejected.

For your credit card accounts, use payment scheduling and automatic payments online, and keep those paper statement coming as a backup payment option just in case.

No Fee Balance Transfer Update

noreply@blogger.com (FedPrimeRate.com) — Tue, 09 Dec 2008 21:35:00 +0000

In our last post at this blog, we confirmed that the Bank of America (BofA) Pet Rewards Visa® card was still offering 0% intro APR on transferred balances, with no balance transfer fee. Today's news isn't good: this card was discontinued yesterday. I felt a need to confirm this somber news because sometimes a bank will discontinue a credit product from affiliate sites like www.BalanceTransfer.cc, but the product can still be found on the bank's website. So I searched for this card using my favorite search engine and found that it was still listed on the BofA website. For clarification, I decided to have another online conversation with a BofA representative. The conversation ended a few minutes ago; here's how that conversation went:

Current Transcript of the Chat Session. Thank you for choosing Bank of America. An operator will be with you shortly. You are now chatting with Amanda.

Amanda: Hello, thank you for joining Bank of America online chat. I am here to assist you in selecting new accounts that fit your needs. How can I assist you today?

you: Hello

you: I want to know if the Bank of America PetRewards® Visa® card is still available

Amanda: No I am sorry it is not.

Amanda: It was discontinued yesterday.

you: OK, so Bank of America hasn't had a chance to remove all pages related to this card yet, is that right?

you: I was able to find this card with a Google search

Amanda: That's not our site so they may still have it (?)

Amanda: However if you try to get to the application you will get an error.

you: Ok, well thanks for your time

Amanda: You’re very welcome.

Amanda: Are you looking for a balance transfer card?

you: yes

Amanda: How much are you looking to transfer?

you: I'm looking for 0% intro APR on introductory balance transfers, with no balance transfer fee

you: I'm looking to transfer about $4,000

Amanda: Well we don't have a card with no fee but we do have cards with 0% APR for 15 months on balance transfers and then we give you $25.00 back for doing the transfer. So once you get the credit back the fee would only be like $95.00

you: are you referring to the Bank of America Cash Rewards card?

Amanda: That is one of them

you: OK, so I'd like to know the other cards with similar terms and benefits

Amanda: Please click here for information regarding our Visa Signature with WorldPoints.

Amanda: Please click here for information regarding our WorldPoints Platinum Plus MasterCard.

Amanda: Are you still with me? Please respond so I can leave this chat window open to answer any application questions you may have.

you: I have all the information I need. Thanks and have a great day.

Amanda: You’re very welcome.

Right now, the best 0% credit card in the American market is the Discover More Card, which currently offers 0% intro APR on introductory balance transfers for 12 months, with a transfer fee of 3%. Unfortunately, there is no longer a cap on the transfer fee with Discover More, so if, for example, you want to transfer $3,500 or more, the transfer fee would be at least $105.

But you do have options, like the Bank of America Visa® Signature® WorldPoints Rewards credit card, which now offers 0% intro APR on introductory balance transfers for 15 months, with a balance transfer fee of 3%. This is one of the cards the BofA representative recommended during our online conversation (which I posted above.) With this card, there is the added benefit of a $25 statement credit that you can use to reduce the balance transfer fee. So if you were to transfer $4,000 to this card, the real transfer fee would be:

$4,000.00 X 0.03 (transaction fee) = $120.00
$120.00 - $25 (statement credit) = $95.00

Am I sure that a balance transfer would qualify for the statement credit? Yes, I am, because I just checked the terms & conditions for this card. Here's a clip:

"...To qualify for this offer, your new account must be used to make any purchase, balance transfer or cash advance transaction totaling $25 excluding any transaction fees, if applicable within 45 days of the account open date. Limit one (1) statement credit per new account...."

We also have confirmation of this from the BofA representative (see transcript above.)

Ok, so I'm guessing that your next question is, "Why would you recommend the Discover More card before recommending the BofA Visa Signature with WorldPoints Rewards card? Seems that the BofA card offers more value with the 15 month holiday from paying interest on transferred balances."

The answer: because with the BofA cards, the balance transfer fee is subject to finance charges. Here is a clip from the term & conditions associated with the BofA Visa Signature with WorldPoints Rewards card:

"...We include Transaction Fees when computing finance charges. Incurring Transaction Fees results in an APR exceeding 0% for the billing statement on which those fees appear. The Daily Periodic Rate (DPR) will remain 0% as disclosed..."

We also like the Discover More card because its cash back rewards package is the most generous in the American consumer credit card market.

Where Did The "No Fee Balance Transfer"
Pulaski Bank Credit Cards Go?

A little FYI to end this blog entry: The two "no fee balance transfer" cards from Pulaski bank are still available here. The reason we removed them from the "No Fee Balance Transfer" page was because these cards are very difficult to get. Approvals are few and far between. However, if you feel that your credit profile is stellar -- and I mean super perfect -- then by all means give one of these cards a try.

The reason these two Pulaski Bank cards are so hard to get?

0% intro APR on introductory balance transfers for 6 months
No balance transfer fee
For the regular Pulaski Bank MasterCard® or VISA® Card, the APR on purchases and cash advances is 6.50%. For the Pulaski Bank Visa Gold Card, the APR on purchases and cash advances is 8.00% (you will have a hard time finding credit cards on offer from other American banks with APR's that low, especially for cash advances!)

Yes: BofA Pet Rewards Is Still A No Fee Balance Transfer Credit Card

noreply@blogger.com (FedPrimeRate.com) — Mon, 24 Nov 2008 17:32:00 +0000

Every month, I take a tour of the terms and conditions associated with the credit cards we recommend at the www.BalanceTransfer.cc website. I do this to make sure that the cards we are recommending still deserve to be recommended by us. This time around, I found something that would have been a real downer for those looking to transfer credit card balances to a 0% offer that doesn't charge a balance transfer fee. The most popular "no fee balance transfer" 0% credit card right now is the Bank of America Pet Rewards Visa® card, no doubt because it's now the only 0% intro APR balance transfer credit card from a big-name bank to which you can transfer balances and pay no transaction fee.

When I checked this card's terms and conditions, I wasn't able to find any language stipulating that balances can be transferred to this card during the introductory period without incurring a fee. So I visited the Bank of America (BofA) site and clicked a link that initiated a real-time, online conversation with a BofA customer service representative (CSR). Here is how that online conversation went (I've copied and pasted the transcript below):

"Thank you for choosing Bank of America. An operator will be with you shortly. You are now chatting with MarLon.

MarLon: Hello, I specialize in assisting with new personal credit card applications. How may I assist you today?

you: hello

MarLon: How are you today?

you: i thought the Pet Rewards card had no balance transfer fee. This card has a transaction fee on balance transfers now??

MarLon: It does.

you: a fee on balance transfers, even the introductory balance transfers?

you: OK, well that's all I wanted to clarify

MarLon: Introductory 0%† APR for Balance Transfers*, Check Cash Advances, and Direct Deposits through your first 6 billing cycles. (These transactions are subject to a 3% transaction fee, no less than $10. Intro APR will end if late or over limit. Payments are applied to lower rate balances first.)

you: does BofA have any cards that don't charge a transaction fee on transferred balances????

MarLon: Not for the 0% offers.

you: ok....thanks

MarLon: Actually the Pet Rewards card have no transaction fee during the intro period.

MarLon: It does thereafter.

MarLon: Click here.

you: oh....ok....so no fee on introductory balance transfers????

MarLon: Right.

you: OK...thanks...I need to be sure, not just for me but for others. I recommend cards on certain websites and forums

MarLon: Thank you.

you: ok...thanks

you: have a great evening

Last text message received MarLon: You're welcome! Have a great evening as well!"

FYI: Ever since the BofA Pet Rewards card stole the #1 spot as the most popular card at www.BalanceTransfer.cc, the second most popular card on this site has been the Discover More American Flag card. Discover More still offers 0% intro APR on both new purchases and introductory balance transfers, and it also has the most consumer-friendly rewards program in the American market. You just can't beat 5% cash back! Enjoy!

Get A $20 Gift Card for Every $200 You Spend This Holiday Season

noreply@blogger.com (FedPrimeRate.com) — Wed, 12 Nov 2008 14:53:00 +0000

Black Friday is almost upon us. Thanks to the sluggish economy and global credit crisis, retailers are going to be offering some serious bargains this year to get shoppers into their stores.

But before you hit the shops this season, you may want to consider taking advantage of a great offer from Discover. Between now and January 4, 2009, if you buy stuff at participating malls across the country with any Discover card, Discover will give you a $20 gift card for every $200 you spend. This offer is great because most Discover cards already come with a generous rewards program. This Turns Receipts Into Rewards promotion won't negate any rewards program that's built into your Discover credit card. In essence, it's a rewards on top of rewards!

Remember to hold onto your receipts. You'll need them to claim your gift card(s).

Which American malls are participating in this offer? Click here and look for the Find a Mall tool on the right hand side of the page.

Of course, if you don't have a Discover card, you can apply for one here. We recommend the Discover More American Flag card, which is the most popular Discover card we recommend at this website. Enjoy!

Debit or Credit - Is There a Right Answer?

noreply@blogger.com (I.C. Jackson) — Sun, 09 Nov 2008 00:05:00 +0000

In this day and age, paying with plastic is no longer just for the wealthy and the well-to-do. It’s commonplace to see someone pull a card out of their wallet to pay for purchases. These days, Visa and Mastercard debit cards empower anyone with a bank account to forego paying with cash. According to the Federal Reserve,

“In 2006, for the first time, consumers paid for more purchases with debit and credit cards combined than with checks. Debit card use is growing especially fast; debit cards have surpassed credit cards as the most popular electronic payment.”¹

With the use of debit cards rising the way it is, you no longer hear merchants ask, “Would you would like to pay with a credit card” - they now simply ask, “Debit or credit?”

But which is the right answer?

There are certain instances in which debit card use is the obvious choice. When you have problems obtaining credit or when you are not able to pay off balances in a timely fashion, debit cards are the way to go. You can use them like credit cards to make purchases online and by phone, and carrying a debit card is safer than carrying cash. However, there are some good reasons not to use debit cards that may surprise you. The following video explains what those reasons are:

As you can see, for all the perceived dangers involved with habitually charging purchases with credit cards, paying with debit cards poses unique risks as well. For consumers who are able to pay off their balances monthly, using credit is often a wise and profitable option compared to debit. Bankrate also provides information on how paying with credit can be beneficial:

Using credit for major and regular purchases is good for your financial health. There are so many benefits to managing your money by paying with credit that it’s hard to imagine not doing it. Savvy consumers also pay with credit in order to take advantage of the rewards offered by card issuers. For example, the Discover More card has an attractive rewards program that include:

$40 Cashback Bonus when you apply
Up to 20% Cashback Bonus® when you shop online
Unlimited cash rewards, automatically
Double rewards when you buy from more than 80 Cashback Bonus Partners

You can actually earn money by using a card like that, all with 0% intro APR and no annual fee. If you paid cash for the same purchases, you wouldn't receive anything extra at all. These kinds of rewards plus the added buyer protection and convenience that comes with proper credit card usage are why so many people who could pay with cash opt for credit instead. Those benefits alone may be enough to inspire you to commit to disciplining yourself to use your credit more wisely from now on. If you don’t yet have any credit, using credit cards the right way from the start will help you to develop a stellar credit rating that will pay off for years to come.

So, the next time you’re asked, ‘debit or credit', think first - the best answer may be ‘credit’ after all.

1 http://www.usatoday.com/money/perfi/credit/2008-07-31-credit-cards-debit_N.htm

Bad Credit, No Credit - Big Problem

noreply@blogger.com (I.C. Jackson) — Tue, 28 Oct 2008 10:01:00 +0000

“Bad credit, no credit - NO PROBLEM”. Have you ever heard that catch phrase on a TV commercial or seen it on a billboard? Used car salesmen and sub-prime mortgage lenders have practically burned that slogan into the psyche of working class and young America. Of course, we know that potential financiers use such tactics to woo customers into signing for what many would call bad loans, but the reality is that bad credit really is a problem. It can be extremely hard to make ends meet without any credit cushion at all, and the current state of the economy is only making matters worse. Although Congress agreed to a $700 billion bailout plan for America’s largest commercial banks, these lending institutions are actually lending less, not more. The reins have been pulled in tighter, and it is nearly impossible to get a decent loan these days, even for applicants with good credit.

So what do those with bad credit and no credit do?

If you search diligently enough, you can find credit cards designed for people with bad credit. The idea is to approve you for a very low credit limit to help you rebuild your credit. As you pay off your balances on time and develop a positive history, you can qualify for credit increases. It sounds like a good option for starting over - until you read the fine print. The following video highlights the terms and conditions on one of these cards and it will shock you to learn just how terrible a deal this is!

If that kind of card was your only credit option, you would be in pretty bad shape.

The good news is that such a poor deal isn’t your only option. If you have bad credit or no credit at all, consider applying for the Discover More credit card. Discover More offers 0% intro APR on balance transfers and new purchases, and a 5% cash back reward that tops just about all competitors. Because the credit card industry has trained consumers to believe that exclusivity is a sign of quality, many people have been led to believe that Discover is somehow a sub par credit option. The hit prime-time cartoon series Family Guy has even poked fun at Discover.

What’s not funny, however, is applying for credit from one of the more “exclusive” companies and being rejected. Rejection doesn’t just hurt your ego; it hurts your credit rating, too. So, although Peter Griffin had a good time delivering the bad news to that potential patron, it’s actually good news for you. If your credit rating declares you to be just “anybody”, then you may actually have a good way to help rebuild your credit with the Discover More card.

Some Good Tips Related To Credit Cards and Traveling

noreply@blogger.com (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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 (FedPrimeRate.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.