Last updated: November 30, 2008.
Capital One® offers a number of credit cards with no balance transfer fees. For this reason, if you are looking to consolidate your credit card debt onto one cars which you don’t plan on using for purchases, you may want to take a look at these offers. Please be aware that these cards do charge interest on balance transfers, and there is no “grace period” as would usually apply to purchases. That means you’ll be charged interest starting with the day you transfer your balance.
You should only transfer a balance to a credit card if the terms, including APR and transfer fee, are better than what you’re currently being charged. Don’t consolidate just for a lower monthly payment.
Here are the Capital One® credit cards that offer no balance transfer fees.
No Hassle MilesSM Rewards – Excellent Credit
No Hassle CashSM Rewards – Good Credit
No Hassle MilesSM Rewards – Good Credit
Standard Platinum
No Hassle CashSM Rewards
Credit cards are like buzz saws. They are useful tools but dangerous if in the hands of someone who doesn’t use them properly. The rates offered on these balance transfers are not the best in the industry, but the lack of a balance transfer fee sets these cards apart. In today’s environment, many other credit card companies are charging fees of 3% and eliminating upper limits on these fees.
Credit cards are tightening their standards and no longer being generous with low promotional interest rates on balance transfers. In fact, many cards have balance transfer fees even with their promotional offers. This information is not always immediately apparent.
I’m assembling a list of current balance transfer fees by credit card. The other day, I listed balance transfer fees on CitiBank credit cards, and today I’m adding American Express to the list.
American Express Offer 1: No balance transfer fee.
• Business Gold Rewards Card
• Business Green Rewards Card
• Clear
American Express Offer 2: There is no balance transfer transaction fee associated with this offer.
• Blue Cash for Business Credit Card
• Blue for Business Credit Card
• Delta SkyMiles Gold Credit Card
• Gold Delta SkyMiles Business Credit Card
• Hilton HHonors Platinum Card
• JetBlue Business Credit Card
• JetBlue Card
• The Knot Card
• The Nest Card
• Platinum Business Credit Card
• Platinum Business FreedomPass Card
• SimplyCash Business Card
• Starwood Preferred Guest Business Credit Card
• Starwood Preferred Guest Credit Card
Balance transfer offers are not for the faint of heart. They can be used to earn interest on a credit balance transfered to a bank account, but credit card issuers build traps into this process.
- Don’t send a payment late. If you do, you will owe back interest and late payment fees.
- Pay your entire transferred balance off before the term of the introductory offer has ended, otherwise you will owe back interest.
- Don’t use the card for purchases; payments you make will go to your balance with the lowest interest rate first, increasing the amount of interest you’ll owe.
Updated May 14 to reflect additional removal of the no-fee offers.
There was a time when credit card companies offered nice balance transfer offers, so savvy manipulators could earn interest on savings obtained from credit. While being charged a 0% introductory rate by the credit card, they’d be earning 5% or so in their savings account.
With savings interest rates lowering and credit card companies losing money as some customers default and backing banks lost money on subprime investments, good balance transfer offers are harder to find.
I’ve been working on assembling a list of all the balance transfer fees offered by credit cards. It’s a large project, considering the fee is often not disclosed on the application itself. I’ll begin with the CitiBank credit cards.
CitiBank Offer: 3% of the amount of each balance transfer, minimum $5.
• mtvU™ Platinum Select® Visa® Card for College Students
• PremierPassSM Card – Elite Level
• Dividend Platinum Select® Card
Balance transfer offers are not for the faint of heart. They can be used to earn interest on a credit balance transfered to a bank account, but credit card issuers build traps into this process.
* Don’t send a payment late. If you do, you will owe back interest and late payment fees.
* Pay your entire transfered balance off before the term of the introductory offer has ended, otherwise you will owe back interest.
* Don’t use the card for purchases; payments you make will go to your balance with the lowest interest rate first, increasing the amount of interest you’ll owe.
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