comments
Discover No Longer Offering Fee Free Balance Transfers
Email
 Print
|
Boo! I guess Discover is sick of all the balance transfer arbitragers out there because their balance transfers now come with a balance transfer fee of 3%, minimum of $5 and a maximum of $50 ($1667 transfer). While it might not be a deal breaker for some arbitragers, it definitely reduces your return.
For example, if you get a $5000 credit limit and transfer it all, you can get around $250 (that’s the ceiling, since you’re paying the debt off and getting around 5% interest). That $250 is reduced by the $50 fee and so you’re left with $200. You pay taxes, however, on the $250 of 25% so you pay out another $60ish. That means of a potential $250 (which, remember, is the max), you only take away $140. Granted, that’s a “free” $140, but whatever.
Anyway, bottom line, Discover Cards now have a 3% fee (at least the max is $50 and not $75 like Chase). Sorry folks, but at least Citi still offers no fee balance transfers!
{ 2 comments, please add your thoughts now! }
Related Posts
 By Jim |
 Stumble It! Bookmark reddit.comTags: May 09, 2007 | Read more in Credit |
Like this article? Get all the latest articles sent to your email for free every day. Enter your email address and click "Subscribe." Your email will only be used for this daily subscription and you can unsubscribe anytime.
Be very, very, very careful with Chase. I’ve noticed recently that their BT checks and offers have a minimum of $5 and no maximum!
They’re charging a full 3% with no limit! Be careful!
Bank of America is offering 0% for 12 months no BT fee. Check out: https://offers.bankofamerica.com/ConsumerCard/OTS5Offer.aspx