Creditnet News Story
Balance transfer offers not as sweet as they used to be
Tuesday, November 24, 2009
By Linda McCarthy
Fees see increases, and time periods on 0% interest reduced.
Many consumers may be trying to find balance transfers that come with 0% interest credit cards.
However, a recent report from Reuters notes that cards that offer such balance transfers are not as abundant as they used to be. There was a time when such cards offered 0% interest for up to a year on balance transfers. They also had balance transfer fees that tended to be capped between $60 and $75.
Much of that has changed as card companies try to navigate the new rules put forward by the Credit Card Accountability, Responsibility and Disclosure Act. The Reuters report states that offers for 0% interest on balance transfers may only apply for six months and that many transfer fees are no longer limited.
Many card companies are changing credit card offers and accounts in the face of interest rate regulations that are set to take effect in February. For example, some lenders may switch consumers' accounts from a fixed to a variable rate, while others are implementing or increasing fees.
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