If your credit score is in the region of 720 or more. I think you would have been flooded with offers and pre-approvals to take 0 apr credit cards from some credit card company or the other. Most of these offers boast the fact that they have 0% annual percentage rates on new purchases and balance transfers and they offer this for a period as long as 21 months. These offers for 0 apr credit cards are expected to become increasingly common as delinquency rates drop still further. It has already dropped from 26% it was a year ago and it continues to fall all the time. In an effort to boost it even further, credit card companies are doing everything. Short of giving away the card and paying you to use it.
A staggeringly high 71% of credit card mail offers rock-bottom introductory APR’s on all purchases. An increase in the 53% that were offered the same last year. Balance transfer offers too are on the rise and it is a dramatic u-turn committed by these credit card companies. Most of these very borrowers that paid their bills on time and maintained low. Often zero balances were shunned by credit card companies. Now, these very companies are falling over one another to snare these very customers. The reason they were shunned before is that they offered a very small amount of profit for the lenders. But now, efforts are being made anew to woo these borrowers. Perhaps the hope is that these borrowers will spend freely. Carry a balance beyond the end of the introductory period of the card.
If you are one of the responsible borrowers with a credit score in the rough vicinity of 720 points. Expect to be approached by credit card companies left, right and center. In fact, if you do have a balance remaining you can transfer it and avail of the zero percent interest-free periods to munch through that debt and finish it off once and for all. The only downside about making these balance transfers is that there is a 3 to 5% fee levied and that takes away a huge chunk of savings from you. Almost every card that I saw online at cardhub.com has this fee, and the one card that did not have this percentage fee (the Visa Black card had a fee of at most $50) had an annual membership fee to boot.
As early as last year, there were caps placed on these balance transfer fees, but they have abolished of late. And it’s only going to get worse. These fee hikes are not going to stop coming. If you can pay off this balance that you have within the grace period. All is well and good for you would have saved a nice bit of money by way of the interest you would otherwise have had to pay.
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