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No Fees: Clear from American Express

No annual fee, no late fee, no over-limit fee, no balance transfer fee, no cash advance fee… that’s the pitch from American Express – Clear has absolutely no fees. American Express is capitalizing on the fact that there’s been such an outrage over the ridiculous fees (ridiculous in amount, not in nature) charged by credit cards, banks and other institutions. The reason why this backlash exists is because all these financial companies are using fees for revenue generation and not what they were originally created for, which was to reimburse the company for actual financial loss. Now it looks like American Express, which I believe has always been fast to react anyway, is swinging the pendulum the other way and nixing all fees.

The big fee that they nix that is very appealing to most consumers is probably going to be that no balance transfer fee because when you couple it with their 0% APR on balance transfers* for one year, that’s another balance transfer you can take advantage of in order to get a better handle on your existing credit card debt or to use in a credit card arbitrage play. To my knowledge, this is the only no fee 0% APR American Express balance transfer available. So if you’ve tapped out Citi and Discover or have a big American Express credit limit, it might not hurt to open it, transfer your credit over, and snag a nice fat transfer.

* I mis-read the 0% intro APR to include balance transfers, which is erroneous. APR on balance transfers are 4.9%, which appears as the second bullet point – I have no idea how I missed that unless they modified the copy. My apologies for any confusion it may have caused and thank you to marylandterps for pointing it out and gnoorts for getting on my tail to fix the error. I’m usually better about fixing errors but my head has been swimming lately dealing with wedding caterers so I haven’t been reading comments as diligently as I have in the past.