Credit Card Balance Transfer Offers

PenFed Life of the Balance Transfer With No Fee

A new balance transfer deal popped up on the Internet today, offered by the Pentagon Federal Credit Union.

What makes this offer somewhat unique is that it’s a no fee balance transfer that offers a low fixed rate for life.

In other words, the balance transfer APR will never change – it’s locked in at 4.99% for the life of the balance.

At the same time, you won’t pay a balance transfer fee, which typically ranges from 3-5%, often with no maximum.

The downside of this balance transfer offer is that it’s only available for those in the defense community, along with their family members. So if you’re not part of that esteemed group, this offer isn’t for you.

If you are a member, read on…this new balance transfer offer applies to all of PenFed’s “A-List” credit cards, including the PenFed Premium Travel American Express® Card, the Platinum Cash Rewards Card, and the Platinum Rewards Card.

So if you already hold on to one of these credit cards, or are interested in applying for one, you can take advantage of this offer to move other, existing high-APR credit card debt.

For example, if you’ve got an outstanding credit card balance with Citi or Chase, or any other credit card issuer, you can move it to PenFed and pay nothing to do so.

You’ll also enjoy a very low interest rate, lower than most mortgage rates, for life. Not a bad deal, considering most credit card APR is in the high teens to 30% range.

What Kind of Saving Are We Talking About?

Let’s look at an example:

Current interest rate: 20.99%
Amount to be transferred: $5,000
Balance transfer fee: $0

Assuming you currently hold $5,000 in high-APR credit card debt, you’d be subjecting yourself to about $87 a month in credit card finance charges (interest), and nearly $1,050 annually.

Clearly this doesn’t make a lot of financial sense. Why throw money away each month? Instead, you can take advantage of PenFed’s balance transfer offer and move the balance at no cost.

To further illustrate the beauty of this deal, with a standard balance transfer fee in place, you’d have pay $150 to transfer your balance.

Is a 0% APR Balance Transfer Better?

While this is all good and well, there is a no fee balance transfer offer currently available that also comes with 0% APR. And it’s available to everyone, not just the defense community.

I’m referring to the Chase Slate No Fee Balance Transfer, which comes with 0% APR for 15 months and no balance transfer fee.

If your existing credit card debt isn’t with Chase (you can’t transfer within the same bank), this is probably a much better deal.

Your interest rate will be 0% as opposed to 4.99%, which using our example, will save you about $250 in finance charges annually.

So you may want to consider that offer instead, especially if you think you can pay off your entire credit card balance within 15 months.

For the record, the PenFed balance transfer offer is only available from now until June 30, 2012, so act quickly.

Read more: What is a balance transfer?