Low Interest Transfer Cards

The Comeback of the Balance Transfer Credit Card

Remember those credit card deals that would let you transfer your balance from one credit card to another, pay few or no fees and get zero percent interest for years? If you thought those balance transfer offers had gone the way of the dinosaur, there's good news. These offers are back.

Consumer credit experts say low interest balance transfer cards can provide significant savings for borrowers who use them to pay down their balances before the introductory rates expire.

Credit card regulation and the disappearing balance transfer deal

The credit card landscape has had a bumpy ride in the past few years, for two reasons. The first was the Great Recession and the overall tightening of consumer lending. Second, federal lawmakers enacted legislation in 2009 that curbed some common practices by credit card companies.

The law, known as the CARD Act, made a number of major changes to credit card lending and marketing practices, including how and when card companies could increase interest rates on cardholders. In reaction to the CARD Act's provisions, credit card companies pulled back on some products that used to be commonplace but became less profitable.

As a result, many of the best balance transfer credit card offers faded from existence--until now.

Discover balance transfer card offers

In January, Discover launched two balance transfer credit card offers, both part of its Discover More series. One Discover More card charges no balance transfer fee and zero percent interest on transferred balances as well as on new purchases for 12 months.

Another Discover More card charges a 5 percent fee to transfer a balance, but offers zero percent interest for 24 months .  That's the longest zero percent balance transfer offer currently available. 

While these balance transfer credit card offers from Discover are only available through the end of February--borrowers have until March 10 to make balance transfers without getting charged--more card products of this type are likely, says Matthew Towson, a spokesman for the company based in Riverwoods, Ill.

"We have been very pleased with the response we've received on our no balance transfer fee offer," he says. "We'll continue to provide competitive balance transfer offers throughout the year."

A battle for creditworthy cardholders

Because the Discover deals are so good, consumer credit experts expect them to become popular quickly. Competitors who see Discover's success may push hard on similar offers with no balance transfer fees and/or zero percent interest.

Best Credit Card Deals – Low Interest Rate, Rewards and Balance ...

Digital News Report – Outstanding credit card debt is declining according to data provided by the Federal Reserve. The amount outstanding fell 6.4% in January when calculated on an annual basis.

Credit card rates declined according to two surveys. One credit card analysis showed an average rate of 14.15% while another found an average rate of 14.44% this week.

One of the best low interest credit cards is the Capital One® Platinum Prestige Credit Card. The card is designed for people with excellent credit and there is no annual fee.

There is an introductory period of zero percent on all purchases and balance transfers until June 2012. The card has an ongoing variable rate between 10.9% – 18.9%.

The SlateSM from Chase is a great balance transfer card. There is an introductory period of 18 months. Slate also offers Blueprint which helps borrowers pay-down their balances faster with lower interest.

The ongoing rate is variable between 11.24% and 22.24%. Barrowers will need excellent credit scores to get this card.

There are many cards that offer some type of reward. The Capital One® VentureOneSM Rewards Credit Card is a good one. There is an introductory period for purchases until March of 2012. There is no limit on airline miles you can earn and the miles will not expire.

Customers can fly on any airline at any time with no blackout dates.

Besides travel, cardholders can use their points for merchandise, gift cards and more. There is no annual fee on this card.