While 0% balance transfers aren’t difficult to find, no fee 0% balance transfer offers are essentially non-existent. So many people have asked me where they can find a card that offers a no fee transfer and the reality is that there are probably none. The credit crisis has really put a dampener on the liquidity of many companies, including credit card companies, and so they’ve responded by reducing the aggressiveness of their credit campaigns.
The result is that it is now standard for every credit card with a balance transfer offer to have an associated 3% fee. Citi used to have no fee balance transfers out the wazoo, but now there are 3% fees with no maximum.
The best option now for someone looking for a quick cheap loan is by applying for a Discover card. For the most part, and you’ll have to double check the terms & conditions of the card you’d apply for, the fee is 3% with a maximum of $75. The sweet spot on that deal is thus $2500. If you get a transfer of over $2500, then your actual percentage fee starts to dwindle (3% of $2500 is $75). If you have a $5,000 credit limit and get a balance transfer for that amount, you’re really talking a 1.5% fee. If you have a $10,000 credit limit, you’re only talking a 0.75% fee.
Tags: Balance Transfers, Discover
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