Barclays is sending out targeted offers to its US Airways Dividend Miles MasterCard holders. Per this offer, you can avail 0% APR on balance transfer until June 1, 2016 with a 1% transaction fee. While it is not uncommon to receive these 0% APR offers, 1% transaction fee is rarely seen.
You can balance transfer up to your credit limit and the balance transfer can be processed using a check or through your online account.
Let us say, you did a $1000 balance transfer and you would pay $10 fee (1% transaction fee). If you transfer this $1,000 to India and do a Fixed deposit with a bank for 9% APR. A fixed deposit of INR 60,000 for 9% APR will earn you INR 450 per month. so you can recoup 1% transaction fee in less than 2 months (INR 900 can be earned in 2 months)
Things you should remember:
- Balance transfers will not earn points/miles
- When you balance transfer, your credit utilization may go up to, as high as 100% (if 100% of the credit limit is used for balance transfer) on this specific credit card. This could have a negative impact on your credit score.
- You should pay off your entire balance transfer amount before the 0% APR ends, otherwise you could end up paying much higher APR on the balance.
- You could easily recoup the 1% transaction fee with a simple fixed deposit in India.
Barclays is sending out targeted 0% APR Balance transfer offers to its US Airways credit card holders. Check your email, postal mail and online account to see your offer.
The most attractive portion of this offer is the 1% transaction fee compared to the standard 3% or higher offer.
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Editorial Note: Opinions, analysis and any calculations shown are authors alone. Information in this post is not reviewed, approved and endorsed by any airlines, frequent flyer programs or financial institutions