You are herePenFed Visa Replaces Life-of-Balance with Limited-Time Transfers
PenFed Visa Replaces Life-of-Balance with Limited-Time Transfers
We've covered Pentagon Federal Credit Union's tremendous Visa Cards exensively. We regret to note that their longstanding "life of the balance" promotional rate offer on these cards have ended. In effect, one of the last exceptional unsecured loan options available to prime borrowers has been cut back subtantially.
It's theoretically possible that this promotion will return. However, the provisions contained in the Credit Card Act of 2009 render this very unlikely. In particular, the Act prohibits changes in fixed rate credit card balances. This means that a "life of the balance" option at a low fixed rate carries more risk for credit card companies than it did previously.
All is not lost, however. PenFed still offers 4.99% for two years, with the transfer fee capped at $100. For someone needing a loan for an unsecured loan for a limited time, this option is among the best available in this tightened credit environment.