You would not believe the number of credit offers I review and see. But this one caught my attention as usually interesting. I have no idea how many people have access to this offer but if you are a Bank of America card holder it might be worth calling customer service and seeing if you are eligible for it if it fits your needs.
Balance transfer offers are typically a suckers play. They induce people to move a balance onto a card and then when the rate goes up, they’ve got you at some trumped up high interest rate. But you can beat them at their own game if you pay off your transferred balance in full by the time the rate expires.
For example, let’s say you owe $5,000 and have a six month 0% balance transfer offer. If you pay $833 a month you will pay off the entire $5,000 for no additional interest charge. That’s the smart way to use a balance transfer deal.
Extended time balance transfer deals are a real find. And this offer by Bank of America is for 0% for sixteen months. If you transfer a balance today the 0% rate will be good through March 2014.
Any balance remaining will then got to an adjustable rate, which right now is 9.9%. Even that’s not a bad current rate.
The offer isn’t without any costs. Bank of America will charge a flat 4% fee of the amount you transfer so in essence there is some cost to use this offer, but it’s a small price to pay if you can pay off a transferred balance before the end of the offer period.
Remember though, if you do take advantage of an offer like this, don’t close your old credit card if you’ve had that one open for over a year. That old card and the aged credit history on that card will help to improve your credit score.
Here is the exact wording of the offer if you want to call Bank of America customer service and see if you are eligible for it:
Complete a balance transfer to your Platinum Plus® Visa® credit card account by January 17, 2013 and receive a promotional 0% APR through your statement Closing Date in March 2014. When the promotional period ends, existing balances for Balance Transfers will go to a variable APR, currently 9.9%. The transaction fee for Balance Transfers is 4% of the U.S. dollar amount of each transaction, (min. $10).