My Wife Just Got a 0.99% APR Transfer Credit Card Offer, What Does This Mean?
Posted: November 1st, 2009 | Author: Joe | Filed under: Credit | Tags: 0% balance transfer, Credit Cards | 1 Comment »Just last week I blogged about 0% Balance Transfer Credit Cards Offers Finally Coming to an End and darn if it hasn’t come to pass in my household!
Just a year and a half ago, my wife and I were getting 0% transfer offers every week. Then the credit crunch hit. Then the recession hit. Then, finally, the Credit Card Act of 2009 hit. Now the best we can hope for seems to be 0.99% APR.
I know, I know, it’s still cheap money. I just find it interesting that it’s no longer 0% or even 1%.
I see the same thing happening to car loans too. Not too long ago 0% financing (on some models) was very common. Not I see a lot more 1.99% (for qualified buyers). A sign of the times no doubt.
Besides the increased APR, this latest credit card offer is only good for 6 months. The norm was 12 months, a year or two ago. Also, there never used to be a transfer fee on the offers we were getting. Now there’s a 3% fee. No mention of a limit on how much that fee can be in dollars though.
So what does all this mean?
I suppose it means two things.
- 0% transfer offers really are a thing of the past.
- We still have pretty good credit and are sought after customers, because 0.99% is still a great deal.
I’m wondering how many others are seeing these winds of change bringing rates and fees upward.
With unemployment skyrocketing, and the credit crisis causing a hike in credit card rates nearly across the table, more and more people are having problems repaying all sorts of debts, from credit cards to mortgages. Those pesky credit cards, with their variable interest rates, seem to trap many, many people into a downward spiral of debts. However, if a person seems to be drowning in debt, the good news is that there are still options in how to reduce credit card debt.