Balance Transfer Credit Card Offer Lengths at Highest Recorded Level According to July SBT Monthly Index
EASTON, Conn., July 19, 2012 /PRNewswire/ -- After a stable second quarter, the average length of 0% balance transfer offers increased to a record 13.1 months in July. This marks a 4% improvement over June, an 8% improvement since the start of 2012 and a nearly 20% jump from all time index lows breached in October of 2010.
The jump in average balance transfer lengths this month was largely due to the introduction of two US Bank credit cards to online marketing channels. These cards carry 12 and 15 month 0% promotional periods as opposed to the 9 and 12 month promotions being offered on the bank's website.
Despite the continued increase in 0% promotional lengths being offered, balance transfer fees once again held steady at a reasonable 3%. Fees have been essentially flat throughout 2012, though they are down 8% percent from July of 2011.
"While banks have sharply pulled back on rewards promotions relative to Q3 of 2011, the balance transfer market has thus far remained immune," says Jeffrey Weber, Chief Card Analyst at www.smartbalancetransfers.com. "This is likely an indication that the major banks believe the Fed will hold rates near zero for the foreseeable future. Until there is a change in sentiment, the high value balance transfer offers available today will continue to be available."
Despite the ongoing willingness of major banks to extend 0% rates for historically long periods, Mr. Weber cautions that, "while long 0% promotions may not go away soon, a deteriorating economy may lead banks to become more stringent with credit, blocking vulnerable consumers out of the balance transfer market."
About the SBT 0% Balance Transfer Offer Index
Updated monthly, the SBT 0% Balance Transfer Offer index reflects the average fees and 0% promotional periods for a basket of 22 credit cards. These cards represent all banks with pertinent offers included in the J.D. Power annual credit card satisfaction survey, including Citi, Chase, Discover, Capital One, Bank of America, Barclay's, Wells Fargo and U.S. Bank.
For additional commentary, please see http://www.smartbalancetransfers.com/blog/2012/07/july-sbt-balance-transfer-offer-index-861/
About SmartBalanceTransfers.com
Founded in 2007, SmartBalanceTransfers.com (http://www.smartbalancetransfers.com/) is a leading destination for consumers seeking targeted information on balance transfer credit cards. For additional information on current offers, please see http://www.smartbalancetransfers.com/blog/the-10-best-balance-transfer-credit-card-offers-of-2012/
CONTACT: Jeffrey Weber, +1-203-651-9739, [email protected]
SOURCE SmartBalanceTransfers.com
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