If, like a lot of people, you’re slowly chiseling away at the debt on a credit card with an interest rate of 15% or more, it’s so tempting to take advantage of a competing card’s offer for promotions like 0% APR balance transfers. And while that may be the way to go, there are common mistakes people make that end up negating the benefits of transferring their credit card balance. [More]
Contrary to any ads touting financial responsibility, banks don’t really make much money on people who pay attention to their money, and they may just kick you to the curb when they realize you won’t be a huge source of fees and interest for them.
Credit card companies like to lure in new customers with impressive-sounding balance transfer officers, but they don’t just do that to be nice. There are usually fine-print catches associated with the deals, and they’ll bite you if you overlook them.
You can file to get $12 because of a settlement in a class action lawsuit against Chase which alleged the bank enticed customers with promo interest rates on balance transfers, but then didn’t do a good enough job of telling them when the rates would expire.
Howie had a Wachovia credit card, which is now a Wells Fargo card. After a barrage of balance transfer solicitations, he called them up to move some debt from another card over to Wells Fargo. The bank’s response? They promptly canceled his credit card.
Credit cards mean different things to different people. For some they’re a lifeline to get by from month to month, while others use them to streamline their cash flow and reap rewards.
Ah, the glory days of American credit cards. When your credit card’s interest rate went too high, you could find a different card with a deliciously low promo balance transfer rate, and revel in your low interest. At least, until you let the card sit idle too long or made a late payment, and then started the cycle over again. But no more.
We wrote in January about a new $10 per month fee that Chase was arbitrarily imposing on customers who had transferred balances to their Chase cards. Well after having a little chat with New York Attorney General Andrew Cuomo, Chase announced that they’ll stop charging this ridiculous fee and they’ll be refunding customers’ previous payments.
I have a card with one bank (that I am trying my hardest to pay off ASAP) that is 24% APR. It is killing me. A week or two ago, you had an article about a woman who paid off all her credit card debt over the course of 20 months or so. Good for her and it was a good story. One thing about it had me wondering though. She said that she negotiated with her lenders to get lower interest rates on her cards. How do you suggest I do that?