Remember those credit card deals that would let you transfer your balance from one credit card to another, pay few or no fees and get zero percent interest? If you thought those offers had gone away, guess what …these offers are back.
Deb Domke from New Horizons Credit Union joined us on Studio10 with some tips and things to watch out for. Please click on the video link to watch the interview.
Are these offers as good as they sound? Low interest balance transfer cards can provide significant savings for borrowers who use them to pay down their balances before the introductory rates expire.
Why did these offers disappear? For two reasons, the first was the Great Recession and the overall tightening of consumer lending. Second, federal lawmakers enacted legislation in 2009 that curbed some common practices by credit card companies. This CARDAct made a number of major changes to credit card lending and marketing practices. So card companies pulled back on some products that became less profitable.
What are some of the offers that are out there? You will see Zero percent interest on transferred balances as well as new purchases for 12 months. Another one charges a percent fee such as 4 or 5% to transfer a balance but offers zero percent interest for 24 months.
Any tips if you are in the market to transfer a credit card balance? The key is to pay attention to the fine print in the offer and use the new cards to pay down existing debt, not run up new
http://www.newhcu.org
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