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Balance transfer offer

April 3rd, 2009 at 04:03 pm

I got an interesting offer from Penfed credit union this morning: a balance transfer offer with a 2.99% APR fixed for the life of the balance, with a transfer fee of 2.5% capped at $100.

I'm not currently a member of Penfed but I get their newsletters. I am actually considering becoming a member and applying for a credit card just to get this offer. I am hoping to get a credit limit of close to $20K. If so, I will be able to pay off our HELOC. I always like to take secured debt and convert it to unsecured. Plus it takes a floating rate (HELOC is prime minus 0.5%, with a 3.5% floor) and converts it to a fixed rate (2.99%). Even though the HELOC interest is tax-deductible, rates have nowhere to go but up so I see this as a win-win. I'll keep you posted on how the Penfed offer plays out.

3 Responses to “Balance transfer offer”

  1. lizajane Says:

    I keep hoping I'll get some nice offer from one of my cc's that would offer a cheap rate like that with the balance transfer fee capped. So far, nothing. I could then reduce my "higher" interest card (which really isn't a bad rate, but has a huge balance) to one of these. I only want to do it with an existing card though. I'm always afraid new offers wouldn't give the large credit limit, and then it would be time wasted.

  2. Dave Says:

    @lizajane:
    Why not apply for the Penfed card?

  3. master finance Says:

    Answers are good to some extent.Questions shared are good!!!

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