December 18, 2017

0% Balance Transfers Credit Card Offers Increase in October

0-balance-transfersA new monthly survey by shows the number of 0% balance transfer credit card offers and the average length of 0% introductory rates offered by major U.S. credit card companies increased significantly in October. The average balance transfer fees fell slightly. The main reason behind the increase in 0% balance transfer lengths were changes in offers made from Citibank and Discover.

Are 0% credit cards a good idea for a consumer? It seems they would be, but there are things to consider before participating in one of these offers, according to experts. The potential service fees, which range between 3 to 5%, on these "deals" ensure that the credit card companies get their money. These offers typically have a short period of time to get the prefered rate.  Banks also have a good chance at getting the customer locked in at the high rate that begins if the full balance is not paid within the short 3 or 6 month period. Consumers need to ensure that they can pay off the balance during the 0% period. The “go-back to” rates on most offers are higher than the regular card rates.