Curtis Arnold, a financial analyst and consumer advocate finds this quite surprising. He added that he didn`t expect things to change so quickly, because even last year there were hardly any offers on balance transfers, but now there are offers for 18 months or more than that in some cases.
One of the recent studies surveyed around fifteen balance transfer offers from various credit card issuers in order to get a better picture of the choices you can make in case you wish to shift to a low-APR card. Since card offers keep changing on a frequent basis, it is important to check on the terms and conditions before applying for a specific card. Out of the 15 cards that were surveyed, around 13 cards offered promotional 0 percent APRs on balance transfers. The period ranged from six to 21 months in some cases. Well Fargo offered 6 months, while Citibank offered 21 months.
The 0 percent APRs was offered in 13 credit cards on fresh purchases for that time period. Hence, this is a great option that card holders can use to their advantage as they can spread out their holiday shopping and other expenses without having to pay any interest. Once the promotional period comes to an end, the regular interest rates will come into being and that is something that consumers have to beware of.
All these cards that had been surveyed carried no annual fees. Only IberiaBank Visa Select charged $35. Since the interest rates are raised on the no-annual fee credit cards, card issuers manage to compensate for the same. Although IberiaBank cards carry an annual fee, they offer less-than-average interest rates.
The balance transfers should be done within a specific time period, maybe within a month in some cases in order to be able to qualify for the low APRs. So, read the terms and conditions carefully before you apply for these cards.