No Balance Transfer Fee Credit Cards Making A Huge Comeback?

Before 2009, no balance transfer fee credit cards were everywhere. However, after the passage of the CARD Act, the offers seemed to die out. This was because the way most companies made money off of these cards was by murky tactics used to change consumers’ interest rates. When the CARD Act made these types of practices illegal, the offers ended.

However, there are a few companies who have decided to bring these types of cards back to consumers. Both Chase and Discover recently offered no balance transfer credit cards, although Discover now only offers it to direct mail customers.

What is the catch? Why are these companies again offering these cards? There are a few practical reasons. The first is to project growth and the second is to lure in new customers and most likely cross sell them other products. Finally, it is good for their public image. These cards can be a good choice for many with revolving credit card debt, but act quickly, as these deals may disappear as quickly as they reappeared.

Source: http://www.opposingviews.com/i/money/personal-finance/theyre-back-no-balance-transfer-fee-credit-cards

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