PolishPete

My TL is at 6.99% (bought it used in 05'). I've been waiting for a good CC offer to transfer that balance...and this is what I got (though I think there's a catch).

A lot of the offers have been 4.99% fixed until you pay it off ($90 max fee). This last one is 2.99% till' you pay it off ($90 max fee)...so I thought it was too good to be true. It says "2.99% guranteed for life until you pay it off.

But on the back in the fine print...it says.

"We may change your account terms, including rates, at any time for any reason".

Do they actually act on this...or is this just something they throw in there to protect themselves? I'm looking to transfer about $18K. But don't want to have them make it a 10% card in a year.

The card is an Advanta Business Card.

TIA for any replies.

timmahh

It really depends on the bank and rates; but it sounds like if prime changes they can up your interest rate on the balance transfer; as soon as you are late with a payment or perhaps forget to pay $1 of the minimum due, you're going to see a huge rate increase probably in the 15% - 19% range

Also, based on the way minimum cc payments and finance charges are calculated I would think this is a bad idea.. ?

I have 4.9% from AHF.. have you thought about doing a new loan at a lower rate?

mrdeeno

I would call them about that "change account terms, including rates, at any time for any reason" because that sounds very fishy. Is it in regards to your regular rate for future purchases/transfers, retroactive to an already taken promotion?

I don't think they can change the terms on a balance transfer balance unless certain condtions are met (such as late payment), but they can change the terms for future purchases and transfers that have not been made yet.

But besides that issue, it sonds like a good deal and also it's an unsecured debt with the credit card, meaning if you fall behind on payments for whatever reason, they can't repo.

PolishPete

Thanks guys.

I have thought about refinancing, especially since rates have been coming down...but 2.9% on a used car won't be found anywhere. Even on a new car, and bank other than the Auto manufacturers probably can't touch it.

Thanks for the advice. I'll give them a call.