Mon 19 Oct 2009
Can You Trust 0% Balance Transfers?
Posted by RichSlick under Financial Safety
Comments Off on Can You Trust 0% Balance Transfers?
I keep getting weekly offers for 0% APR balance transfers but after all the bank shenanigans can you really trust them? I have to say that what is really keeping me from them aside from the possible rate jack is the ridiculous 4% balance transfer fee. Borrowing 50k at 4% is essentially $2,000 in balance transfer fees and that is too steep a price to pay in this deflationary environment.
I called a major credit card company a few days ago to activate a new card they had sent me to replace an expired one and the agent on the phone was probing to find out how they could get me to use my card more often. I explained that I primarily use my Costco Amex card and get a generous rebate on my purchases and they immediately offered to switch me to another plan with 1% cash back but that still doesn’t beat Costco’s Amex program so I told them I wasn’t interested.
A few days later, I get a new credit card in the mail touting the new rewards on the card which I specifically stated that I didn’t want. If I can’t trust these guys NOT to send me a new rewards card, how can I trust them on a balance transfer offer?