Fewer free balance transfer deals available
July 3, 2007
Balance transfer credit cards have been providing those with high interest credit card balanced with an effective solution to avoiding interest charges for some years.
However, according to recent reports the number of credit cards that allow fee free balance transfers is rapidly dropping, which means that those wishing to benefit from transferring their balance onto a 0% interest card will have to pay for the privilege in the form of a fee.
With credit card companies looking for new and inventive ways to charge customers more money, this is yet another strategy that enables the credit card companies to make more money from cardholders.
Traditionally 0% interest balance transfer credit cards have enabled those with outstanding balances on high interest credit cards to transfer the balances onto a 0% interest card and then enjoy a specified period within which to clear the debt without being charged any interest.
Although this is still the case, many cards are now charging customers a percentage of the amount being transferred, with upper and lower limits in place. Therefore, those transferring a large total balance could find themselves hit with a huge transfer fee.
There are still some credit cards that do not charge a fee for balance transfers, and consumers are urged to look out for these.
Consumers that cannot find a fee free deal, which is becoming increasingly more difficult due to the fewer number of credit card companies offering fee free transfers, should compare the percentage charged by each card issuer in order to find the best deal for their circumstances.
The interest free period offered should also be taken into account. Credit card transfer fees can vary quite widely between card issuers, as can the interest free period offered by each company.
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