lunarfollies

lowonmemory Wrote:
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> 0% APR balance transfer cards have a 3% flat fee
> on the balance transferred. You end up paying ~3%
> APR on credit card.


That's right. And then you realize that they often don't have the promotional rate for a whole year. You pay the 3% fee, but pay the whole thing off in 6 months, because that's the promotion... their IRR for 6 months has been 6%. Not bad, considering that they were telling you in large letters that you'll be paying ZERO PERCENT!


If you make a mistake, and get the penalty rate, then you have to pay the rate, AND if you decide to pay it off to avoid continuing with the penalty rate they get their principal back early, while keeping the transfer fee... IRR shoots through the roof!


Damn' if feels good to be a banker!



Edited 1 time(s). Last edit at Friday, August 19, 2011 at 01:39PM by bchadwick.