Credit Cards

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Wednesday, March 22, 2006

The Balance Transfer Offers From Citibank Keep Coming, and They Keep Getting Better!

The good folks at Citibank sent me an email today offering me yet another great deal on a credit card balance transfer: 1.99% annual percentage rate (APR) on transferred balances until the transferred balances are paid in full! Another great offer from Citibank, and I take my hat off to them for presenting it to me. This time, however, there's a fee involved--which is almost expected because the promotional APR is so low. Here's the catch:
"A fee of 3.0% (minimum $5.00, maximum $75.00) of each balance transfer amount applies to this offer"
What to do...What to do?

None of my other credit cards have a high balance, thanks to all the great balance transfer offers that have come my way. I currently have a $600+ balance on my BJ's MasterCard (it's a Chase card) because of a charge I couldn't avoid: the chair that I use all day for work fell apart, and I needed a quality replacement chair, and fast. I could use the Citibank offer to transfer this debt, but I'll most probably be able to pay this balance down to zero next week, so transferring this balance wouldn't be a smart move.

Then again, Prime Rate experts are predicting a prime rate of 8% by the time summer 2006 arrives, and most of my credit cards have a variable APR that's tied to the prime rate, so maybe I should think about a big ticket item that I know I'll need in the near future, charge it to one of my cards, then transfer that balance with the above Citibank offer. I won't try to "force it," of course, because that would be mindless consumerism, so I guess I'll see what comes to mind over the next couple of weeks.

Another concern: I'm already past the halfway mark on my credit line because of the 2 previous balance transfer offers I decided to accept on this particular Citibank credit card, so any transferred balance may cause my credit score to drop to an unacceptable level.

I have until April 11, 2006 to accept, so I can let this one marinate for a while as I decide if I want to use it.

I'm still waiting for a 0.99% APR balance transfer offer from one of the credit card companies with which I have a relationship. Anyone ever get a 0.99% offer? Please post a comment if you have. Thanks!

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