Credit Card Balance Transfer Fees Are Going Up
This really shouldn’t surprise anyone but a couple of leading credit card issuers have just announced that they will be increasing their fees. This time the fee increases will affect balance transfers.
Bank of America and Discover Card Services have recently announced that they’ll be raising their credit card balance transfer fees one percentage point from 3% to 4%. The higher fees will go into effect on June 1 for Bank of America. At this time it is unclear when Discover Card will implement their fee increase.
Both credit card issuers state that the fee increases are necessary to keep up with increasing operating costs. A skeptic no doubt, would say that the fee increases are being implemented to help make up for declining profits in the credit card market.
It wasn’t that long ago when balance transfer credit card offers were virtually everywhere. They were an invaluable tool utilized by credit card companies to pick up new customers, chiefly by taking them away from their rivals with more attractive offers of such as 0% interest rate balance transfers for periods of up to 12 months or more.
During this current credit crisis those days are all but over, at least for the foreseeable future anyway. While balance transfer credit cards are still available through many credit card issuers, you had better have a very good credit rating in order to have your application approved.
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