Aggressive Solicitations

In spite of the increasing pressure on their profit margins, banks and American Express are still soliciting new customers with low, or even zero teaser rates. A tabulation of 33 bank solicitations in Credit Card News shows only six with no annual fees, of which three were different cards issued by Capital One. Four banks and American Express on its blue card were offering teaser rates of 0 percent on purchases and/or balance transfers. Several others offered teaser rates of 1.9 percent to 3.9 percent. After the teaser rates expire, final rates ranged from prime at Wachovia to 23.99 percent at Providian. A final noteworthy trend is the introduction of titanium cards, trumping platinum cards. For example, Fleet offered a titanium card with no annual fee and a 10.99 percent rate.