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Discover Doesn’t Like 0% Balance Transfers Anymore

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I received an updated cardmember agreement from Discover and they’re definitely trying to get rid of all the balance transfers they’ve been offering the last few years. First, they added a 3% fee to all of their 0% APR balance transfer offers and now they’ve increased the minimum payment due to 4% of the new balance for those accounts where 90% of the balance consists of special-rate balance transfers. Compare this to the regular 2% minimum payment due and you’re looking at a 0% balance transfer period being cut in half.

Minimum Monthly Payment
If more than 90% of your New Balance consists of special-rate balance transfers, we may increase your Minimum Payment Due to a maximum of 4% of the New Balance if it would otherwise be less than that. Your New Balance is shown on your monthly billing statement.

So, they can raise your minimum payment to 4% if more than 90% of your balance is special rate balance transfers, obviously a push to take balance transfer arbitragers and heavily leveraged cardmembers off their books. Are easy and cheap balance transfers coming to an end?

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5 Responses to “Discover Doesn’t Like 0% Balance Transfers Anymore”

  1. If it is coming to an end, I don’t really care. It just means that people will have to find a new way to take advantage of somebody.

  2. Mike says:

    I find the whole thing silly really. You’re playing with fire to begin with when you do this with credit card companies–their whole business model is finding ways to turn your intended interest free charges into an 18%+ interest loan, and they’ll do it any way they can. Innocent looking terms and conditions fine print changes are a great way for them to do it.

    Also FYI, apparently in the UK they have a term for this game: stoozing

    http://www.moneyforums.co.uk/stoozing.html

  3. When you play in Discover’s sandbox, you gotta play by their rules. And their rules are often long, confusing, and geared towards getting you out of the 0% bracket and into the 18%. Or higher.

    “The only way to win is not to play” War Games

  4. Rob Carlson says:

    The rules for the 0% BTA game is no different than the normal credit card game. So long as the money is always in the bank waiting to pay-in-full when the rules change, you don’t lose. If they don’t change the rules quick enough, you win.

  5. C. Tredup says:

    re: Discover Card Minimum Pmt Change.

    Actually, it really sucks that I am again looking for another 0% balance transfer with no fees and a minimum payment that is doable. I have been able to really pay down my cc debt by having all of my payment go towards the balance. I didn’t abuse the 0% offer by trying to make money off of it, and because some people did, that is why cc companies have to keep changing the rules. Too bad.


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