PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Credit Card Balance Transfer Offers Become More Generous

By Mercator Advisory Group
January 28, 2015
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

With a modest revival in U.S. credit card accounts andoutstandings underway, competition among issuers appears to be growing in thevehicle of balance transfer offers. A recent CreditCards.com survey ofleading issuers’ offers indicates a greater number of choices available toconsumers:

Additionalcredit card companies are now offering promotional rates for at least 12 monthswith some extending it to even 18 months. The CreditCards.com survey of 100popular credit cards’ offers to new customers found several good reasons tocomparison shop and act soon. Consumers should also be aware that fees varywidely among the issuers and most cards give consumers only 90 days or less totake advantage of the lowest rates.

Comparedto the same survey in 2014, more cards or 38 of them offer a balance transferpromotional rate for at least 12 months compared to 33 cards last year. Thenumber of cards with an offer lasting 15 months or more is also up, from 10last year to 17 now.

With most of the offers giving a 90 day window to qualifyfor promotional rates, issuers are clearly trying to grow balances quickly,while also mitigating their risks. 0% offers on balance transfers arealso relatively common for qualified applicants:

The survey also revealed that outof the 100 widely held cards that CreditCards.com examined, 85 allow balancetransfers. Out of those cards, 44 are advertising limited-time balance transferrate promotions with discounted interest rates. Nearly all of those 44promotional offers include a 0% introductory purchase and balance transfer APRsfor a set period of time, which are typically 12 to 15 months. An additionalnine cards offer a 0% introductory rate on balance transfers but not purchases.

With credit card delinquencies and chargeoffs at or nearhistoric lows, issuers may have room to take on a limited amount of higher riskoutstandings. Underwriting criteria remain conservative, however, withlimited appetite to move into subprime territory.


Overview by Ken Paterson, VP Research Operations for Mercator Advisory Group

Read full story at MainStreet

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Credit

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    PayDay Lending: Out on the Fringes and Still an Ugly Business, payday lenders, Payday lending rule, national debt, changing relationship with money

    Legislation Requiring Cash Acceptance Faces an Uphill Battle

    July 21, 2025
    supply chain payments

    The Payment Process: The Supply Chain’s Most Overlooked Cyber Risk

    July 17, 2025
    Navigating Global Fintech Regulations Through Strategic Regulatory Arbitrage

    Navigating Global Fintech Regulations Through Strategic Regulatory Arbitrage

    July 16, 2025
    AI Is Turning Accounts Receivable Into a Strategic Powerhouse

    AI Is Turning Accounts Receivable Into a Strategic Powerhouse

    July 15, 2025
    Embedded Finance

    Embedded Finance: Bringing Payments Under a Single Umbrella

    July 14, 2025
    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result