In the month of February, the balance transfer fees credit cards that offered zero percent balance transfer reduced to 2.95 percent from 3.25 percent. This is the first time that the on balance transfer offers on credit cards have dropped since the 2010 September. The fees on credit cards that offer balance transfer have also reduced by 12 percent. In addition to these changes, the duration for which the zero percent interest is offered has also changed considerably.
One of the main reasons for the drop in the duration of the zero percent balance transfer is because CitiGroup Inc has reduced the time period for which it offers this to its card holders. A few months ago this bank offered the longest 0 percent duration of 21 months for its customers. In addition to this bank, there are other banks as well that have drastically reduced their zero percent time frame. Therefore, the overall average has fallen to just a meager 12 months. This is the lowest duration for the balance transfers without incurring any interest since May 2011.
The only credit card issuers that have balance transfer credit cards that offer 18 months without interest payment are CitiBank and the Discover Group. While the former has three cards in the market, the latter has only one. The shortest interest free duration of six months are offered by US Bank and Wells Fargo. As per the experts in the field of credit cards, the month of February has been the best month for card holders, considering the current balance transfer crisis. The reduction of the interest free period for balance transfers by Citibank may prove to be just the starting point for many other banks to follow suit.
The respite for customers may come in the form of zero fees for balance transfers, which have already been rolled out by leading credit card issuers such as Discover and Chase. Though these are limited period offers, they are worth applying for since they can help customers save on a significant amount of money that can be put to better use. Customers, though, have to be prepared for further shortening of the interest free tenures, if they are looking for other benefits such as zero fees. An increasing number of credit card companies are now offered balance transfer deals that you can consider applying for. If you want to apply for it, then the time is now.