What happened to those wonderful balance transfer offers with no fees and why
can't you find a single such offer despite scouring the database of every single
online credit card website? The answer isn't difficult to find. Such offers have
been exploited by people to defer their repayments and shelve themselves from
high interest rates. In fact, this practice became so widespread that credit
card companies were forced to rethink on the issue.
Earlier, it was very easy to find credit cards which allowed to transfer
balances without any fee what so ever. These credit cards came with 0% intro APR
for a specified period like 6, 12, or 15 months. This was used as a goldmine by
those with large outstanding balances. They would simply transfer their balances
to such credit card and get rid of existing high APR's. The 0% intro offer would
then be exploited by them. Just by paying the minimum balances they would stay
in the good books of credit card companies, and when the 'golden period' of0%
intro APR was nearing its end, voila they shifted their huge balances to another
credit card with similar offer.
So, this resulted in loss of revenue for credit card companies in terms of
interest rates, but a more disastrous consequence of this process was that the
credit card holder was increasingly getting into huge debts.
A major issuer of such no fee balance transfer credit cards, Morgan Stanley
with their range of Discover credit cards, took strong exception and withdrew
all such offers. Now they decided to take a certain percentage on balance
transfers. To counteract such measure the credit card companies now have a
different APR for balance transfer, this includes credit card with 0% intro APR.
Game the system and the system will game you. Nothing applies more truly to
this particular practice. The credit card companies have retaliated with their
new terms and rates to stop the trend of transferring balance and avoiding high
APR's. Days of such unhealthy credit card practices are now over, unless some
new credit card company comes into the game and decides to capture the market
with such 'lucrative' offers.