Too Good to Be True: Balance Transfer: %2 Visa Platinum, %3 Visa Platinum Rewards
In Alliant Credit Union’s website, it says %2 fee for Visa Platinum Credit Card.
The following fees will be applied towards the amount of the balance transfer: 3% on the Visa Signature card and 2% or $5 (whichever is greater) on the Visa Platinum and Visa Platinum Rewards cards unless specified in a promotional offer.
This looks great, Right? - The best balance transfer I know is from Discover, it offer 3% balance transfer fee for users with decent credit score.
Then you make a balance transfer request, then change the automatic payment to only pay minimum each month: just as you do if you use balance transfer from other banks.
Interest Charge on Balance Transfer Each Month
In Alliant Credit Union’s website, it says %2 fee for Visa Platinum Credit Card. Now after several months, depend on when you check your account, you would find out you are changed with: Interest Charge on Purchases. WTF?
The Scam: 2% One Time Fee + 1% to 2% Interest Each Month
Unlike almost all other banks we may use: like Chase, Discover, etc, Alliant Credit Union doesn’t offer 0% Promotion APR for (usually) 12+ months.
So Alliant Credit Union charges you 2% one time fee, then charges you Purchase APR (10% to 20%), that’s about 1% to 2% interest each month.
What a great business for Alliant Credit Union.
How the Scam works.
This scam works because
Not provide important information, if there is a line that says: 10% to 20% APR charged each month. Who the hell will use this Balance Transfer?
As almost all banks offer 0% APR, so customers would think balance transfer always comes with 0% APR.
