Balance Transfer Cards No Transfer Fee

Does Law Cap Credit Card Interest Rates?

Credit Card Advisor Dear

I thought there was a reasonable maximum interest rate that credit cards may require. I have a card that I ran up (my fault entirely), but I find it very difficult to repay, even if I no longer used because they are charging me 27.99%. Do I have recourse to get the reduced interest rate?

-Kate

Dear Kate,

You may be thinking of new rules for "reasonable" penalty.Credit Card Accountability, Responsibility and Disclosure Act of 2009, or Card Act, set new limits "safe harbor on the penalty charges for breaches of the day, such as delinquency , no more than $ 25 for a first offense and up to $ 35 for a recurrence within six billing cycles.

The law sets no ceiling on the interest rate penalty. In fact, the median penalty rate charged on credit cards issued by banks is 29.99%, up 1 percentage point over the past year, by July 1, 2010 Pew Health Study Group.

Banks have even been known to interest rates over 30%.You may have seen media reports last year about an issuer that offered credit cards with interest rates up to 79.9%.

You might wonder how such exorbitant rates be legal? The reason is that the limits of state usury interest rates on credit cards have become largely irrelevant for the banks, through a combination of federal laws and a Supreme Court decision. credit unions with federal charters have an interest rate ceiling of 18% on all loans, not just credit cards, according to the Credit Union National Association.

If your 27.99% annual rate, or April, is the result of increased tariffs, you must know your rights under the new law.

The Act requires that issuers CARD review rate increases that occurred after January 1, 2009, every six months and reduce the interest rate of the person, if any. A specific amount of reduction is not necessary. The law deals with rate increases triggered by a delinquency penalty of 60 days differently. If the cardholder makes the next six minimum payments on time after rising interest rates, the issuer must stop the increase.

Outside of your limited rights under the law, you can ask your card issuer for a lower interest rate. Be aware that this application may lead to a review of your account and credit history. You can also try a strategy to fight against the payment of your debt, such as paying small bills first credit card to free up more money to pay off high-interest debt. Stick with a payment strategy that works for you.

The Best Balance Transfer Deals Right Now | Blog Envy

If you are looking to save money and pay off your debt more quickly? One way to do is transfer your balances to a card transfer balance 0% interest. If you are a current or former employee of the Army or the Department of Defense or a family member of an employee, you may be eligible for a free balance transfer with 0% interest by the Navy Federal Credit Union. For the rest of us, the best deal balance transfer offers on the right is now the Citi Platinum Select MasterCard, according to Credit-Land.com.

The offer is open to Navy Federal card holders, new and existing.Transferred balances up to $ 30,000 will return no interest for 12 months, and there is no fee. The offer applies to a variety of cards in the Navy with various interest rates on purchases.

"This is an unprecedented offer in the card industry today," Randy Hopper, director of Navy Federal credit card portfolio, said in a statement. "While other issuers offer 0% balance transfer rates, they typically include balance transfer fees of 3% to 7%, which can cost owners up to $ 350 on a $ 5,000 balance, Navy Federal but offer no charge. "

So far, there seems to be right.Citi Platinum Mastercard but select reaches the lower end of the scale rate of 3% or $ 5, whichever is greater. And the introductory period is one of the longest available. Your balance carried forward - and shopping, too - will be interest free for 21 months.

Obviously nothing beats a loan without interest, balance transfer without fees, but this card can still save you a significant amount in the long run if you transfer a large balance. If you leave this $ 5,000 balance Hopper note on a card with an APR of 18%, you'll pay $ 1,575 interest in 21 months, compared with $ 150 fee if you make the transfer.And since your money will not go to interest payments, you can pay that balance more quickly.

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