The future of low apr / no balance transfer fee ca... - myFICO® Forums

Anonymous · ‎12-24-2015

Hello,

I was very fortunate to get decent cards recently.

My citi simplicity has a 0 Apr but 3% btf.

My nfcu has a promo for 0 Apr 0 btf until 1/4/16.

I hear chase slate is the only real 0 Apr no btf .

What effect does the fed raising interest rates have on these promotional rates?

Will these turn into specialty products for only the credit score elite?

longtimelurker · ‎12-24-2015

Hard to know but 0% was (obviously!) already below prime, so the increase in prime rate wouldn't have a huge impact on profitibility. They may reduce the period, or increase the BT fee a little, or do nothing, and just expect that enough people will eventually pay the new higher interest once the promo ends.

NRB525 · ‎12-24-2015

I doubt it changes at all.

CCC are looking for new cardholders, and offering 0% APR money for a new BT is a way to provide a low cost benefit to those cardholders. Back in the day, low APR BT offers were common, are common today but are not Forever like many were prior to the credit crisis. Instead they take the 12-month to 18-month (21-month for Simplicity) limitation for that low rate. The BT rates offered may come up, but it won't be lock-step with the Fed raising rates. "I just got a great 0.25% BT offer with a 3% fee!" And they banks usually do make money on that 3% fee, which BofA seems to have raised to 4% recently.

I don't believe Slate has no BT Fee outside of the initial period after the app for a new card. They should be charging a 3% fee if they operate like other BT offers.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765

SouthJamaica · ‎12-24-2015

@Anonymous wrote:
Hello,

I was very fortunate to get decent cards recently.

My citi simplicity has a 0 Apr but 3% btf.
My nfcu has a promo for 0 Apr 0 btf until 1/4/16.

I hear chase slate is the only real 0 Apr no btf .

What effect does the fed raising interest rates have on these promotional rates?

Will these turn into specialty products for only the credit score elite?

I have cards with zero balance transfer fee... Cap One, Discover, Alliant Credit Union, Barclay Ring