0% on Bank Credit Cards

In an effort to counteract the low response rates to their credit card solicitations, some banks are offering introductory rates of 0% interest. CardTrak reports that Citibank, First USA and Providian are offering 0% interest on their Visa and MasterCards. Citibank is offering 0% rates on transfer balances through May 2002 on its Platinum Select MasterCard. However, there is a transfer fee amounting to 3 percent of the balance transferred, with a maximum of $29 and a minimum of $5. When you make payments on your account, they will be applied first to the transferred balance and then to new purchases on the card. Citi charges interest on unpaid balances arising from new purchases at prime plus 5.99 percent. If you are delinquent or make late payments, CardTrak reports that the rate moves to prime plus 14.99 percent.