New balance transfer strategies used by card issuers

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » New balance transfer strategies used by card issuers

New balance transfer strategies used by card issuers

The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.
It is a constant game that involves the credit card issuers, the regulators of the credit card industry and sometimes the credit card customers. Credit card issuers are always trying to dodge tough rules in the card industry and utilize various strategies to exploit and manipulate the customers. So it is important for credit card customers need to be aware of these strategies used by credit card issuers. Co-branded cards Card issuers are commonly issuing co-branded cards. Co-branded cards are good offers, which are a win-win situation for some credit card customers, but for others they can become an added expense. For example, for a customer who travels frequently, a co-branded card with an airline company involved could be particularly handy with extra miles, bonus miles and special privileges across airport lounges. However, for someone who doesn't travel often, co-branding involving hotel chains and restaurants, with special benefits on the cards might not really account for much. Going for a balance transfer for such a card should be purely based on calculation and not on the reputation of the card. Waiving of card fees Some balance transfer cards come without any card fees. These can make for a very good deal, especially for customers who already have a high outstanding balance and don't want to take on more debt. Whether it is the balance transfer fee, the annual fee, activation and application fee, card issuers have a lot of tricks up their sleeves. Therefore when there is no fee, the cardholder can breathe a sigh of relief. Starting Bonus The holiday season is approaching and many of credit card companies want to make the best of this season, given that there are a lot of credit card customers who are itching to spend some money by shopping or going on vacation. Therefore, credit card companies are using balance transfer deals to attract cardholders to their companies given the intense competition. They do so by giving incentives like starting bonus points which are great for holiday shopping. For example, there are credit cards, which offer bonus points that can be redeemed when customers reach specific spending targets. For example, if there is cash back of $100 if you spend $500 in 3 months, many of cardholders will be tempted to go for a balance transfer. No Interest on balance transfers as well as purchases This offer is usually available for those with good credit, but is certainly a strategy amongst credit card issuers to entice other card customers into using their cards. Citibank for example, is offering a number of credit cards which have a 0% APR for 12 months on balance transfers, and 0% APR on purchases for 7 months which is a decent deal. This avoids confusion in the minds of the cardholders, because they can blindly consider that there is no interest on their credit card, irrespective of the outstanding balance on it, due to balance transfer or due to purchases.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!