You are herePenFed Visa Replaces Life-of-Balance with Limited-Time Transfers

PenFed Visa Replaces Life-of-Balance with Limited-Time Transfers

By Dave - Posted on 18 October 2009

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.

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It seems like with the new government regulations regarding banks the real customers suffer more and bank still keep raking huge profits.
Even with interest rates so low they haven't been passed to the end customers and banks keep the profits. Even when it comes to CFD trading traders have to pay higher interest on their overnight positions.

It is disappointing that that promotion has ended. Many more could have used that. I hope this program would return soon. For this “life of the balanced” have saved us from very high interest rates. Just about every sector of the finance industry is doing everything they can to lower interest rates, well – except credit card companies. The interest rates on the infernal plastic have been rising lately, while card limits have been dropping. Oh, and long time customers aren't warned about it in advance! National savings rates are going up, as more people put their own money away instead of borrowing to spend, and card companies need to increase revenue. In all fairness, the hike in interest rates seem fair – because a credit card company suit shouldn't have to wait another week to buy his next Ferrari should he – or should the consumer not be punished to make up for their market follies?


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