Credit Card Alerts: Don't Transfer Credit Card Balances Online
Consumers looking to transfer credit card balances online need to be extremely careful as many credit cards that advertise 0% interest rates for one year may only offer these rates for as little as three months.
Stamford, CT (PRWEB) May 20, 2009 -- Jeffrey Weber, editor of www.smartbalancetransfers.com, has a message for consumers looking to take advantage of 0% interest balance transfers: do not transfer balances until your credit card arrives in the mail.
Smart Balance Transfers Blog
"Credit card companies make it very easy for consumers to transfer balances when they are applying online," says Mr. Weber. "Unfortunately, this can be one of the dirtiest credit card tricks in the book."
In a recent article, Mr. Weber outlines three key reasons why consumers should not transfer credit card balances online. Chief among these reasons is the fact that some credit card companies advertise 0% interest rates for up to one year, but may only grant approved applicants a 0% APR for as little as three months.
"If the fine print states that the length of a promotional 0% rate will be based on a credit review, consumers absolutely should not transfer balances online," says Mr. Weber. "If you do so, you are essentially placing a bet on a roulette wheel. And, with upfront balance transfer fees of up to 4%, you might end up paying more in fees than you would have paid in interest without the balance transfer if your 0% rate only lasts for three months."
Another reason consumers should not transfer balances online is interest rate uncertainty. Just as some credit card companies offer multiple 0% rate periods, many also offer multiple long term interest rates. The lowest advertised rates are reserved for consumers with the best credit. In fact, the interest rate an applicant ultimately receives can be nearly twice as much as the lowest advertised rate. Because of this, Mr. Weber cautions, "it is possible to end up with a higher interest rate on your new credit card than you had on the one you transferred balances from."
In order to avoid these potentially costly mistakes, Mr. Weber urges consumers to, "carefully examine credit card terms when applying online and again when the credit card arrives in the mail."
Other issues for consumers in the market for balance transfer credit cards include increasing balance transfer fees and decreasing introductory periods.
"During the past six months, nearly every major credit card company has raised balance transfer fees," says Mr. Weber. "To make matters worse, more and more credit card companies are shortening the length of 0% introductory rates from one year to six months. Given the record setting consumer default rates being reported by the major issuers, it is quite possible that 0% balance transfers may be the next victim of the credit crunch."
"Anyone who could benefit from a low interest rate balance transfer should apply now while these offers are still available."
About Smart Balance Transfers
Smart Balance Transfers is a Credit Card Depot Inc website. Founded in 2004, Credit Card Depot Inc operates websites that enable consumers to compare credit card offers online. In 2007, Smart Balance Transfers was founded to provide consumers with detailed information on balance transfer credit cards. For information on current balance transfer credit card deals, please visit www.smartbalancetransfers.com where you can compare offers and apply online.
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