Credit cards simply are no longer offering the enticing deals in order to lure customers. Even though credit card companies have been willing to offer strong cash back rebates and introductory 0% APR deals, they’ve done so knowing that they can make up the loss through interest rates from defaulted customers and interchange fees. It appears that the issuers are projecting are difficult times ahead.
One way credit card companies have found to still offer enticing deals but lower their risk is to reinstate balance transfer fees. So far, I’ve assembled a list of balance transfer fees on CitiBank credit cards and American Express cards. Here is a run down of what Chase is offering.
Chase charges 5% of the balance transferred, but depending on the card, there is a different upper limit. With savings accounts offering interest rates that are no where near 5%, you must run the numbers to make sure credit card arbitrage is worthwhile. Don’t forget to take into account the possibility that savings account interest rates will continue to decline.
Here are the details:
Updated July 7, 2010 and originally published March 25, 2008.