Credit Cards

[ace9848]

I am curious why different accounts with similar account history choose to offer, or not offer, balance transfers for me. Here's my story.

Discover - YES

WAMU - no, but used to. I did it once before.

Chase - They called and offered me one right when I opened the account, and I told them no thank you. I called back later the same day saying I changed my mind and it was no longer offered. The rep said there must have been a promotional offer, and there was no way to get back to it. At that point I don't think I had even used the card yet.

BOA - yes.

What do you think? Do they have different strategies at making money? It seems like Discover  is always will to BT and CLI as part of their strategy. Agree?

Thanks!

[FretlessMayhem]

My theory is that BTs are sort of a "trick" that CCCs use to establish relationships with new customers. Kind of like how we sometimes apply for easier approval cards, they want us to transfer balances to them, so they know we will more than likely use the accounts after.

And also the trick of applying payments towards low APRs first, so they can accrue interest on the purchases.

[ace9848]

The part about pay the low-interest part is probably very true with my discover. I had a few thousand in purchases trapped behind a few thousand in low-rate BTs. I just BTed away the lower-rate on my Discover, so it will be interesting to see if my BT offers at Discover disappear.

Thanks for your input - anyone else?

[Watchmann]

The card companies use sophisticated programs to manage risk so two identical accounts with different people will produce different offers, interest rates, etc.  American Express is the leader in this area which is why they are a bit stricter in offering credit.  Remember they want the maximum amount charged on their accounts with the least % of defaults.  It is a moving target.

[psychic]

I have 2 Chase accounts.  Every month, Chase provides me with several different balance transfer options.  However, both cards often times have different balance transfer offers.  One account might have an offer for a lifetime of the balance transfer at 3.99%, while the other card has that offer at 4.99%.  Or, one account might have a limited time BT offer at 1.99%, while the other card's limited time offer is at 0.99%. 

In 2005, I spoke to a Chase rep about BT offers.  At that time, she told me that Chase provided the best BT rates to cardholders carrying balances.  However, I carry a balance on one Chase account, and often times this card's BT rates are higher than those offered on the other Chase account that I PIF monthly. 

Bank of America always offers a reduced rate balance transfer option.

When I used my Dividend Platinum Select MC frequently, Citibank provided me with limited time,0%, and 3.99% lifetime of the balance transfer offers.  Now that I rarely use that card, my best Citibank lifetime of the balance offer rate is at 5.99%.

I can't remember how many years it has been since AMEX had a balance transfer offer for my Optima Platinum card. 

Message Edited by psychic on 05-16-2008 10:38 AM

[psychic]

AMEX finally emailed me a (very lousy) balance transfer offer! 

Uncomplicate your life this spring.
Transfer Balances* with a promotional 7.99% APR.

I have credit cards with lower purchase rates than that 7.99% APR!

Message Edited by psychic on 05-21-2008 11:04 AM

[FretlessMayhem]

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psychic wrote:

AMEX finally emailed me a (very lousy) balance transfer offer!

Uncomplicate your life this spring.
Transfer Balances* with a promotional 7.99% APR.

I have credit cards with lower purchase rates than that 7.99% APR!

Message Edited by psychic on 05-21-2008 11:04 AM

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7.99 is a pretty low purchase rate though!