cancel
Showing results for 
Search instead for 
Did you mean: 

Lenders Allegedly Suspending Balance Transfer Offers

Highlighted
Frequent Contributor

Lenders Allegedly Suspending Balance Transfer Offers

https://www.cnbc.com/amp/2020/06/27/credit-card-industry-reins-in-balance-transfer-offers-as-banks-f... 

 

Yesterday I noticed while looking at the AmEx Everyday that the terms and fees had no mention of balance transfer rates anywhere. I didn't think much of it at first as googling didn't have any info directly relating to AmEx's alleged  closure of the feature. 


Message 1 of 18
17 REPLIES 17
Highlighted
Community Leader
Mega Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers

Looks like the Everyday card is coming off my want list, at least for now. BT was the only reason I wanted it.







Message 2 of 18
Highlighted
Community Leader
Senior Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers

Many lenders have either stopped or curtailed their BT offers. Many like Disco started that at the beginning of the pandemic.

Message 3 of 18
Highlighted
Community Leader
Senior Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers

Funny dh and I just got BT offers from disco and PF?

EXP 758 TU 783 EQ 729
Message 4 of 18
Highlighted
Epic Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers


@blindambition wrote:

Many lenders have either stopped or curtailed their BT offers. Many like Disco started that at the beginning of the pandemic.


+1

Message 5 of 18
Highlighted
Epic Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers


@Jnbmom wrote:

Funny dh and I just got BT offers from disco and PF?


PF has been hammering out those BT's .. probably flush with cash from the now "pandemic savers"

I have had no offers from Disco in over a year. But did get 0% purchase APR on old card for 1 year.

Message 6 of 18
Highlighted
Moderator Emeritus

Re: Lenders Allegedly Suspending Balance Transfer Offers


@M_Smart007 wrote:

@Jnbmom wrote:

Funny dh and I just got BT offers from disco and PF?


PF has been hammering out those BT's .. probably flush with cash from the now "pandemic savers"

I have had no offers from Disco in over a year. But did get 0% purchase APR on old card for 1 year.


Maybe, but there's still plenty of uncertainty in main street, if I were a lender I wouldn't want to be the one left holding the bag on the consumer's way to a BK.  I'm more surprised anyone is allowing BT's right now, or ones that don't come with things like POI just like any serious loan product (read as mortgage or similar) would.




        
Message 7 of 18
Highlighted
Established Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers


@Jnbmom wrote:

Funny dh and I just got BT offers from disco and PF?


DH just got a fresh offer from Disco this week.  Again, I think they might be scaling back on folks they consider risky, but clearly they have not stopped altogether.









Message 8 of 18
Highlighted
Senior Contributor

Re: Lenders Allegedly Suspending Balance Transfer Offers

I recently just got a BT offer from Disco, checks in the mail and all. Also a Family memeber just apped with Amex and Citi and both products came with BT offers in the promo. So they're not totally gone. 

 


@Revelate wrote:

@M_Smart007 wrote:

@Jnbmom wrote:

Funny dh and I just got BT offers from disco and PF?


PF has been hammering out those BT's .. probably flush with cash from the now "pandemic savers"

I have had no offers from Disco in over a year. But did get 0% purchase APR on old card for 1 year.


Maybe, but there's still plenty of uncertainty in main street, if I were a lender I wouldn't want to be the one left holding the bag on the consumer's way to a BK.  I'm more surprised anyone is allowing BT's right now, or ones that don't come with things like POI just like any serious loan product (read as mortgage or similar) would.


While I would agree, in that sense you would think new accounts would be off the table as well. Though at least that debt has some swipe fee revenue where as a BT does not, only the one time 3-5% fee. The new account comes with 0% APR for generally a minimum of 12 months, so that promotes spending and carrying a balance through that period anyways.

 

The only benefit of the BT is no HP. But if I was truly in need of the extra credit, 0% APR and didn't want to pay a BT fee. I'd simply app a new card and ride out the 12 months, that's what I've been doing on my CFU since August of 19. Though i understand this process doesn't help those people with existing debt that needs paid, and not everyone is in a situation to app a new card.






Message 9 of 18
Highlighted
Moderator Emeritus

Re: Lenders Allegedly Suspending Balance Transfer Offers


@Janus wrote:

I recently just got a BT offer from Disco, checks in the mail and all. Also a Family memeber just apped with Amex and Citi and both products came with BT offers in the promo. So they're not totally gone. 

 


@Revelate wrote:

@M_Smart007 wrote:

@Jnbmom wrote:

Funny dh and I just got BT offers from disco and PF?


PF has been hammering out those BT's .. probably flush with cash from the now "pandemic savers"

I have had no offers from Disco in over a year. But did get 0% purchase APR on old card for 1 year.


Maybe, but there's still plenty of uncertainty in main street, if I were a lender I wouldn't want to be the one left holding the bag on the consumer's way to a BK.  I'm more surprised anyone is allowing BT's right now, or ones that don't come with things like POI just like any serious loan product (read as mortgage or similar) would.


While I would agree, in that sense you would think new accounts would be off the table as well. Though at least that debt has some swipe fee revenue where as a BT does not, only the one time 3-5% fee. The new account comes with 0% APR for generally a minimum of 12 months, so that promotes spending and carrying a balance through that period anyways.

 

The only benefit of the BT is no HP. But if I was truly in need of the extra credit, 0% APR and didn't want to pay a BT fee. I'd simply app a new card and ride out the 12 months, that's what I've been doing on my CFU since August of 19. Though i understand this process doesn't help those people with existing debt that needs paid, and not everyone is in a situation to app a new card.


Actually I'm 99% sure it's looked at very differently from a risk perspective.

 

Someone burning through 10K in swipes, I have time to deny them or cut them off at the knees at any point if I (or more to the point my algorithms) suspect this ain't going to end well.  The salient detail there is running up 10K in swipes takes time; however, someone transferring 10K on a BT, that is instantly debt on my books that I can't do anything to defend against... except not offer them in the first place.




        
Message 10 of 18
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.