Reviewing Credit Card Mailings
Moneywise on June 13th, 2008
During these tight credit times, it is no surprise that credit card industry mailings are down 14% year-over-year, according to a report this morning from Credit Suisse. The amount of mailings going out with a 0% teaser interest rate on balance transfers remains steady, however, at 50% of all mailings. According to the report, Bank of America (NYSE: BAC) is pushing the 0% rates the heaviest including them in 93% of all mailings and American Express (NYSE: AXP) the lowest including them on only 27% of all mailings. Expect around a 10% lower decrease in credit card mailings, generally, though those with exceptional credit may actually receive more offers.
The bottom line here is to take advantage of these balance transfers, especially if you are being bent over the barrel by an interest rate above 12%. If you do not plan on being able to pay your balance off, however, pay special attention to the normal interest rate (what kicks in after the teaser) of the balance transfer ends. Also, you should be wary of ‘playing this game’ over and over, it looks bad on your credit report. If you haven’t ever used a balance transfer offer, however, it just makes good economic sense when you have a significant balance and can get an interest rate (after the teaser rate ends) at or below your existing credit card’s interest rate.
