Skip to main content
No. of Recommendations: 0
Household Bank made me a recent offer of a new credit card and an interest-free balance transfer. I took them up on it.

So I have a free $1,000 "loan" for one year, at a transfer fee of $25.00. You might want to contact them to see if you can get this also, if you're intested.

CAVEATS: If you miss a payment, the free balance transfer all of a sudden becomes a loan at a ludicrous interest rate.
If you cannot pay back the balance transfer in full at the end of the term, the balance will start being charged interest at a ludicrous interest rate.
If you're going to be applying for a mortgage or other large loan in the near future, an additional credit card account can lower your credit rating and hurt your chance of getting that loan.

This is reminiscent of the marketing ploys used by a lot of credit cards in the early 90's. I believe I had opened up about 5 accounts for various rewards...I think the biggest was a free balance transfer for $5,000 with MBNA. The banks made a lot of money from some customers (the ones that missed payments or could not pay back the balance transfer at the end of the interest-free period). The more disciplined customers came out ahead. I thought I had done pretty good back then taking advantage of the offers. But one guy was interviewed on National Public Radio (NPR) who had made a heck of a lot more than I did.

Anyways, if these offers start coming back, and you're older like me and not worried about having to get a new mortgage or other loan, you might want to be watching for them.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.