Discover renews zero percent balance transfer offer
September 27, 2009 by admin
The first offer we can review in our series uncovering the best rate savings program across the Internet is a new promotion that Discover Card® is offering. The meltdown in the financial markets has dramatically offered the credit card industry, from the way they market to consumers, interest rates and credit limits they offer. One of the most notable changes in the industry is the promotions that they offer to try and attract new consumers. For years, consumers have been able to navigate the balance transfer game, transferring balances from higher rate cards to low rate and zero percent promotional programs.
The credit meltdown forced many credit card issuers into eliminating almost all of their balance transfer promotions, forcing consumers into sticking with their current card holders and paying their set interest rates, with few exit strategies. This past week, Discover Card® took a major step forward in providing an alternative avenue to attract these potential customers. The introduction of the Discover® More(SM) Card – American Flag offers new balance transfer promotions with a Zero Percent Rate for the first twelve months. This was one of the only credit card companies we could find that would offer a balance transfer with a zero percent rate for longer than a six month period. There is an upfront fee for a balance transfer, so it is important to crunch the number to make certain this offer is truly beneficial.
For example, if you are a consumer with a credit card balance of $8500 and your current interest rate is 12%, over the course of twelve months you should expect to pay $1020 in interest (potentially less if you are paying the balance lower). If you elect to transfer the balance of this card and take advantage of the zero percent offer, you will incur a fee of $425 upfront (the five percent transfer charge) but have the potential to save between $500-600 over the twelve months that your balance is at zero percent.
The Discover More American Flag card offers a variable interest rate after the first twelve months. The interest rate can adjust to 11.99% to 18.99% after the first year so it is very critical to crunch the numbers to ensure you are potentially coming out ahead in the balance transfer scenario. If you have a low fixed rate, then should closely weigh the short and long term financial benefits of exploring a balance transfer promotion, including a realistic payment plan and a financial exit strategy as you work to becoming debt free. Zero percent promotional credit cards can be very enticing, but it is important to review all of the fine print details to ensure this is the right financial decision.
You can find more details and apply for Discover More American Flag Card® with the following link:
Discover® More(SM) Card – American Flag
