CHARLOTTE, N.C., Dec. 12, 2018 /PRNewswire/ -- CompareCards by
LendingTree today released the findings of its 2018 Balance
Transfer Credit Card Report. The report found that debt-strapped
Americans are flocking to 0% balance transfer card offers, but
unfortunately, millions of consumers are paying more in fees and
interest than is necessary.
CompareCards looked at the terms and conditions of more than 160
balance transfer cards and found that 0% interest introductory
offers are still common and can last up to 36 months, though the
offers come with nuances and deadlines that can potentially keep
cardholders from getting the most out of the card.
Key findings:
- Forty-one percent of Americans have had a balance transfer card
in the past, but four in 10 of those who have gotten a balance
transfer card have failed to pay off the balance in full during the
reduced-rate introductory period.
- The wealthier you are, the more likely you are to have applied
for a balance transfer credit card, and nearly half of those with
household incomes over $100,000 per
year have done so multiple times.
- Men are far more likely than women to say they paid their
transferred balance in full during the introductory period.
- Just 17 percent of those who got a balance transfer card said
they paid no balance transfer fee the last time they transferred a
balance, while more than 6 in 10 said they paid a balance transfer
fee of 3 percent or higher.
- Of the 165 balance transfer cards reviewed, 76 came with a 0%
APR offer, and all but two of those 76 had introductory periods
that lasted at least a year.
- Fifty-four of those 76 cards came with "use it or lose it"
deadlines for their introductory reduced-rate offer, with the
shortest being fewer than 30 days.
Balance transfer credit cards are clearly popular. More
than 40 percent of consumers – and half of current credit
cardholders – have applied for one. However, the goal for balance
transfer card is to pay the transferred balance off during the
reduced-rate introductory period, and millions of Americans are
falling short of that.
The wealthier you are, the more likely you are to have used a
balance transfer credit card. Sixty-nine percent of consumers
with household incomes of $100,000 or
higher have used a balance transfer card at least once, including
47 percent who have done so multiple times.
Men and women don't agree on much of anything when it comes
to balance transfer credit cards. Seventy percent of men say
they paid their last transferred balance off in full during the
reduced-rate introductory period; just 43 percent of women said the
same. Fifty-four percent of men said they had used a balance
transfer card at least once, compared to just 31 percent of
women.
Just 1 in 6 Americans who have had a balance transfer card
said they paid no balance transfer fee the last time they
transferred a balance, while more than 6 in 10 said they paid a fee
of 3 percent or more. The study found 19 balance transfer cards
that came with no transfer fee, though three of those cards
required the transfer to be made within 60 days of account opening
to get the deal. However, CompareCards' survey shows that far too
few consumers are taking advantage of these deals.
Of the 165 balance transfer cards reviewed, 76 came with a 0%
APR offer, and all but two of those 76 had introductory periods
that lasted at least a year. Zero-percent balance transfer
offers are still prevalent, even as other credit card interest
rates continue to climb. Nearly half of the balance transfer cards
reviewed came with a 0% offer, and most of those cards had
introductory periods that lasted as long as 15 months.
"As long as you understand the fees, deadlines and other quirks
that come with a balance transfer card, you'll likely be rewarded
with some real savings on your credit card debt," said Matt Schulz, Chief Industry Analyst at
CompareCards. "Don't wait, though. Credit card interest rates
continue to rise, and as they do, it is likely that these offers
will get less and less attractive. Consumers and banks alike love
these offers too much for that limited-time 0% offer to ever go
away completely, but we will likely see shorter introductory
periods and perhaps even higher fees as the Federal Reserve raises
rates and banks look to keep these 0% offers as profitable as
possible. That means now is the time to act."
To view the full report, visit
https://www.comparecards.com/blog/balance-transfer-credit-card-report/.
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays,
comparing multiple offers from a nationwide network of over 500
partners in one simple search, and can choose the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student refinances, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network, and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
About CompareCards:
CompareCards' mission is to help
people make smarter, more informed, healthier financial decisions
based on deeper knowledge of financial offers. Each month, over 2.9
million visitors come to CompareCards' website to independently
compare credit cards side-by-side and choose a credit card based on
interest rate, reward benefit, cost savings, and other factors that
are important to each person. CompareCards provides easy-to-use,
objective tools and educational resources that help people do
everything from making credit card comparisons to managing their
credit health. For more information, please visit
www.comparecards.com.
MEDIA CONTACT:
press@comparecards.com
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