Many consumers who were able to maintain strong credit ratings even as they saw their credit card debt pile up during the recession may have a new way to reduce debt, as a number of major lenders are increasing the size of their promotional offers.
Many of the nation's top credit card lenders, like Bank of America, JPMorgan Chase, Citi and Wells Fargo, are now offering creditworthy consumers credit cards with lengthy introductory periods and rock-bottom promotional rates in the hopes of luring customers away from other institutions, according to a report from Bloomberg News. Most of these new accounts will come with a balance transfer fee of between 3 and 4 percent of the total debt.
In the past, low introductory rates were typically extended for between three and six months, but are now considerably longer, the report said. Bank of America's latest offer grants a zero percent rate through June 2012, and Citi's card gives users a 0.99 percent rate through February 2013.
A balance transfer such as this may be beneficial for consumers who want to get out of debt because it will notsignificantly add to their balance for some time.