Capital One offers fee free balance transfer card
March 1, 2008
0% balance transfer credit cards have become very popular over recent years with consumers transferring balances from other high interest credit cards and then enjoying a specified period of interest free credit within which to clear the transferred balance without being hit by interest charges. The downside to these cards is that the vast majority of card providers charge a balance transfer fee, which amounts to around 2-3% of the total amount being transferred onto the card.
Over recent years the interest free periods offered by card providers on 0% balance transfers have increased with the longest periods now stretching to 15 months of interest free credit, where the norm used to be just six months. However, in addition to the interest free periods being extended the transfer fees have also been rising, making it more expensive for consumers to transfer their balances.
However, Capital One has recent launched a new offer, enabling consumers to enjoy transferring their balance onto its platinum 0% balance transfer credit card without having to pay any transfer fees. On the downside, although customers will avoid having to pay these fees, the interest free period is only for six months, so consumers would have to repay the balance more quickly than with many other credit cards in order to avoid interest charges.
One industry official stated: ‘Balance transfer fees have increased with many being uncapped, lenders have tightened up their credit scoring criteria, so you need almost spotless credit history to get your hands on one of these deals. If you do, the interest free limits will be smaller than they used to be.’
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