I have credit cards opened from most of the major banks. A few of them have sent me balance transfer offers which are very interesting. These are targeted offers so your credit score do need to be decent. Based on my experience, if your score is 700+, you will have plenty of offers coming in.
Most cards have an initial sign up bonus for 0% APR balance transfers with a fee ranging from 3% to 5%. The offers I'm talking about today are for existing cardmembers which make them worthwhile because new credit inquiries or hard pulls are valuable. It's not efficient to waste a hard pull on a balance transfer offer when we can get sign up bonuses worth $300+.
I accepted a 0% APY with 3% fee offer last year and this year they are only offering a 0% APY with 5% fee. Maybe they keep track of how many offers you've used in the past and adjust their rates based on how likely you are to accept.
They gave me an offer for 0% APR with 2% fee which is better than the standard of 3% fee.
4.99% APY with no fee with the Penfed Promise card. The advantage this card has is that if you pay off the loan early in 6 months, it will be a better deal than a straight up 5% balance transfer fee.
What can we use these for?
Back in the day of 0% APY and 0% fee offers, you could just park the money in a 5% savings account and earn money that way. Nowadays, almost all companies charge a balance transfer fee and with savings account interest rate at 1%, that option is no longer available.
You could use it as a short term loan with a very attractive interest rate for projects or emergencies.
Have you gotten balance transfer offers from other banks? It would be interesting to know which banks makes these offers to existing card members.