The housing market implosion and current crisis have caused many people and institutions defaulting on their credit cards and loans, and brought an end to free and easy credit. The failing economy and tanking housing market have led to personal bankruptcies and defaults on credit card payments by the thousands, causing credit card issuers to panic and scale back their credit card offerings.



Amazing credit card offers of the kind that were widely available during the early part of this decade, it can be argued, were in reality a disaster in the making in that they triggered an out of control credit market that would ultimately consume the entire financial investment banking sector, and wipe out such long-standing titans of American investment and banking might as Lehman Brothers, Bear Stearns, Merrill Lynch, Countrywide Financial, Washington Mutual, and Wachovia Bank. It is highly unlikely the glory days of 0 percent credit card balance transfer offers will return anytime soon.

In spite of the economy, many credit card companies attempt to lure consumers to their credit card by offering 0 percent balance transfer credit cards. Once the money is safely owed to the new company, they will often provide a grace period where they charge far less or even 0 APR on the transferred balance. Usually this introductory rate lasts for six months to a year after the balance transfer takes place.

If you are considering a credit card, you must understand that the APR, or annual percentage rate, is an important part of the overall credit card charges, especially if you ever carry a balance at the end of the month. The APR will typically vary from card to card, and also vary with the type of card, the type of transaction and how you pay your bills. There is usually fine print attached with hidden charges. Some banks may charge a transfer fee, which is often a percentage of the balance transferred.

With the recent tanking of the economy , many major credit card companies have mostly stopped waiving the 3% balance transfer fees on transferred credit card balances. Many card companies have even eliminated the maximum cap on the balance transfer fee, making many balance transfer offers completely useless for profit seeking arbitragers. With a 3% balance transfer fee with no maximum limit, those who transfer large balances will end up having to pay extremely high fees.

Most likely, the period of amazing credit card offers during the early part of this decade was in reality a disaster in the making in that it that triggered an out of control credit market that would ultimately consume the entire financial investment banking sector, and wipe out such long-standing titans of American investment and banking might as Lehman Brothers, Bear Stearns, Merrill Lynch, Countrywide Financial, Washington Mutual, and Wachovia Bank.

Credit cards with 0 APR on balance transfers for a certain length of time still appear from time to time. Look for the good ones in your junk mail, but be very careful in reading the fine print. First, you need to find out if the introductory APR is 0, and ascertain the length of the introductory period. Be aware that the 0 APR may not apply to purchases, but only balance transfers, so plan accordingly. A low interest rate on purchases is good but not necessary if you are primarily concerned with transferring a balance.

If you are careful, this can be an excellent method of reducing credit card debt. It leaves you free to pay down the balance on a credit card without incurring interest charges. According to this strategy, a person could potentially open a new account that offers a balance transfer when the old one expires. Then you can transfer all of the balance to the new card to begin a new 0 APR balance transfer grace period. Be aware that there is usually fine print attached with hidden charges. Some banks may charge a transfer fee, which is often a percentage of the balance transferred.