Citicards Balance Transfer Deals No Longer Attractive
by Mr Credit CardI had a sneaky feeling this would happen sooner or later. Months ago, Citibank started to
1. remove caps on balance transfer fees on some of their credit cards.
2. Raise the maximum balance transfer on some cards to as high as $250.
However, there was still one card where they offered a 0% APR teaser for 12 months on balance transfers and new card holders did not have to pay any balance transfer fee. That card was the Citi Professional Cash Card
Well, that card no longer offers any 0% deals for balance transfer. They switched it to 0% for purchases for 12 months.
Hence, right now, all of Citibanks’ consumer cards that offer up to 0% balance transfer deals have no caps on their balance transfer fees. Furthermore, their minimum balance transfer fee is only $5.00. So if you are looking to do a balance transfer, do not apply for any of Citi’s consumer cards.
Having said that, they have left their student credit cards unscathed! I supposed students do not have the dough to pay the balance transfer fees! So you could still apply for a Citi student credit card and get a balance transfer deal. But it is only for 6 months and not the usual 12 months. Update : 29th December 2008 – All Citi student credit cards now have no caps on their balance transfer fees as well.
With this new development, it looks like I have to update my balance transfer credit card list. But the great choices for balance transfer deals among consumers are dwindling. Perhaps another sign of the credit crunch.
Right now, the only credit card that does not charge a balance transfer fee is the IBERIABANK Visa Platinum. It offers a 1.99% balance transfer deal for 6 months and you are allowed 3 months to do a balance transfer. It has no annual fee and most importantly, NO BALANCE TRANSFER FEE. However, Iberia is very strict with the application process. Once you’ve submitted your online application, you are required to submit proof of income (ie W2) and the approval process takes 30 days.