Do Any Cards Have 0 Balance Transfer No Transfer Fee

Frugal folk can raise strategy shields as credit card fees jump

AMERICANS HAVE A complex relationship with credit cards. They love the convenience of plastic, especially if they need to rent a car or bail an errant relative out of jail. But they detest many credit card company practices, such as raising interest rates for no reason, lowering credit limits or slapping on hefty fees.

These practices have increased in recent weeks as credit card issuers prepare for a series of reforms that will take effect in February. Among other things, the new law will limit when issuers can raise rates on existing debt. In the interim, many issuers are raising rates and fees for some of their customers. Some tips on how to cope:

If you have a balance

Do the math before transferring your balance to a low-rate card. Several card issuers are still offering a low introductory interest rate for customers who transfer their balances. But they've also raised their balance-transfer fees, which will eat into the amount you save. For example, Chase plans to raise the maximum balance transfer fee on some of its credit cards to 5 percent from 3 percent.

Some credit card issuers cap the maximum amount they'll charge customers to transfer their balances. USAA, for example, caps the fee at $75, according to Bankrate.com's 2009 credit card survey.

But many others don't cap balance-transfer fees, which can lead to substantial charges for customers who transfer large balances, says Ellen Cannon, managing editor for Bankrate.com.

Depending on the size of your balance, "There are still scenarios where balance-transfer deals can work for you," says Curtis Arnold, founder of CardRatings.com. Some credit card issuers are still offering a 0 percent, 12-month introductory rate, but you need excellent credit to qualify, he says.

Don't be afraid to negotiate. If your rate goes up, call the credit card issuer and ask for a better deal.

If you always pay on time, pay more than the minimum and have never exceeded your credit limit, there's a good chance your credit card issuer will lower your rate, Cannon says. "They don't want to lose their good customers."

If you don't have a balance

The easiest way to avoid higher interest rates is to pay off your balance every month. But even customers who don't carry a balance are vulnerable to stealth fees, according to Bankrate.com. What to watch out for:

Fees for exceeding your card limit. Many credit card issuers have lowered customers' available credit, increasing the likelihood that you'll inadvertently exceed the limit.

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Reply:I bounced my first ever payment to Amex . I deposited my money into the wrong account, leaving the payment account NSF. Noticed my mistake, called up a rep and explained the situation. Nice guy, even refunded the return fee. Didn't have a problem getting credited my rewards either (Blue Cash). I remember him saying that the payment would automatically try again. If I were you, I'd just relax. No use in worrying. I bounced my first payment, keep a running util of 30-50% on Blue Cash, carried a promotional balance on Simply Cash for 3 months, and I've used my cards for rumored 'red-flag' transactions. No AA. As a side note, I do PIF all the time (promo's excluded), and the cards see very heavy usage…two things people say Amex loves. THey will redeposit it, and then once more after that if needed. In the meantime, your account will be unusable for six days – even if it's not your fault. I've also heard that NSFs (how many, I don't know) leave you in danger of closure. That's all the info I've been able to find out… if you ever do have something like a bank error, be sure to get a letter from the bank and any other documentation you can to fax to the credit dept. It should be no harm, no foul if it's ever a bank error, but they still hold your account for six days. Reply: In my experience – Amex does NOT like returned payments. I did the same thing (told them to use checking instead of savings, or vice versa, or something). It bounced. I immediately called them, had them retry, and it posted fine. I tried to CLI the next month, and it cited "recently bounced payment" or something. That being said, 6 mos later I did cli it from 20 to 25k without problems. Just something to think about. I think people around here say oh well I was carrying a balance or I paid late and got a F/R so people start associating those things with F/R. But if you look at the actual data in the poll you will see that people who pay in full and use their card normally seem to get F/R more than people who do weird/unusual/"problem" things with their card. Reply: In my experience – Amex does NOT like returned payments. I did the same thing (told them to use checking instead of savings, or vice versa, or something). It bounced. I immediately called them, had them retry, and it posted fine. I tried to CLI the next month, and it cited "recently bounced payment" or something.