OMG – $250 Maximum Balance Transfer Fee!!!

I just received notice that one of my credit cards is now changing their terms of agreement and they will begin charging a maximum of $250 per balance transfer starting mid-November. What that means, is that I will be charged 3% of the amount of the transfer, but not less than $5 or more than $250. The maximum used to be $60.

Then, after January 2007 they are removing the maximum and you will just pay 3% of the balance you are transferring.

This is a huge credit card company doing this and I have a few cards from them. So far, I’ve only received noticed on one of the cards.

I don’t know what affect this will have on the special balance transfer offers this particular company sometimes has. I still hope some offers will come around with no balance transfer fee, but it appears to me that this company wants to make some more money.

I’ll explain more later why this is making me so uneasy. I just did a balance transfer and now I’m thinking I made the wrong decision

Posted by Tricia on November 1, 2006 at 11:57 AM in Credit Cards | 7 Comments »
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Tom responded:
Posted: November 1st, 2006 at 1:21 pm
Yeah, I got the same one! Also for only one of the three cards I have with this company.

My current balance transfer with them is at 1.9% for the life of the balance, but with this change, I can’t see doing any other transfers with them.
Amber responded:
Posted: November 1st, 2006 at 2:21 pm
I got that too but I didn’t really see it as much of an issue because any BT’s I do with them will be only about $1,000 at a time and at 3% that’ll never be $250. Then again, the card I have with them that I’d be doing the BTs with, I haven’t gotten the notice for and has a time limit on the BTs which is why I’ll be keeping them down to what I know I can pay off in 6 months.
Chitowngirl responded:
Posted: November 1st, 2006 at 5:18 pm
That’s plain awful!!! I need to read the changes to my credit cards more carefully. Everyone does!!!
Matt responded:
Posted: November 1st, 2006 at 6:32 pm
Just another example of why I want to get my debt off my credit cards as quickly as possible.
kim responded:
Posted: November 1st, 2006 at 11:36 pm
which cards have you found that do NOT charge a balance transfer fee, other than citi cards
Tricia responded:
Posted: November 1st, 2006 at 11:49 pm
Tom – 1.9%! Wow…that’s a great offer!

Amber – my transfers are usually around $5,000+ so I’m looking at $150/transfer now versus $60. But with the smaller amounts – you’re right it wouldn’t make much of a difference.

Chitowngirl – I read them with a fine tooth comb now

Matt – I agree!

Kim – All of the cards I have charge a fee. I think Discover has fees around $75. Unless you get a special offer (usually from citi cards) where there is no fee. I think American Express has special offers like that too.
debtinseattle responded:
Posted: November 3rd, 2006 at 12:20 am
OMG that is insane to me! My husband and I have been blessed because we’ve not had to pay any fees in our transfers! I will definitely be reading ALL fine prints now!