Simple Credit Card Balance Transfers

Bank of America’s Web-based balance transfer option for recipients of credit card check mailings.

 

More than four years ago we wrote our first report on online credit cards. In that report we predicted that online balance transfer services would rapidly be deployed. The technology was relatively trivial, the consumer demand was proven, and there were significant profits to be had.

It turns out we were off by a couple of years. Early this year, NextCard was the first major player to introduce the service for existing cardholders. Now Bank of America and Bank One’s First USA division have launched less robust, but very easy to use systems. Both require nothing more than a card and social security number. There are no registration forms to complete or passwords to remember.

We first became aware of the Bank of America program, aptly called Easy Balance Transfer  www.easybt.com  from a standard credit-card-check mailing. The direct mailer provided three options for transferring balances:

1)       use the enclosed paper checks

2)       call the toll-free number

3)       use the Web  www.easybt.com

Those using the Web or phone options could also qualify for a line increase, although the details on how that worked were sketchy.

The program lived up to its billing, taking about 2 to 3 minutes to login, read the instructions and disclosures, and inputting a credit card to be paid off.

First USA’s Web service is very similar, although it’s not mentioned as an option in the credit-card-check mailings we received. We learned of the service from a banner running on top of the login screen at First USA’s Web site. Unfortunately, the balance transfer service is not integrated into its normal account access. Even logged-in users must log in separately to the balance-transfer function. (see screenshots next page).

Overall, we like Bank of America’s slightly better, but both make excellent use of the Web and are a cut above most bank services in terms of ease of use.8

 

Five seconds after logging in, this screen appears with just two choices, Terms or Continue.

The terms are listed in plain language, including the rate, the potential line increase, and the deadline.

The entire balance transfer form is shown above (one additional blank for email address appears below the screenshot). The drop-down box to choose issuer includes 21 names, but you can add anyone.

FirstUSA banner promotes balance transfers from its credit card login page.

FirstUSA Balance transfer offers are shown first.

All costs are disclosed.

The form couldn’t be simpler.