I got this in the mail last week..... No interest on balance transfers until November 1, 2004. What's more, we've waived the balance transfer fee for this offer. And after the interest-free period ends, you'll continue saving with a very low 7.99% APR. Bonus - 3 months extra savings. You'll enjoy a 0% APR on transferred balances until November 1, 2004 as long as you do not default under any Card Agreement. And as an added bonus, if you make your first balance transfer and $100 in purchases within 3 months of becoming an AT&T Universal Card member, you'll enjoy a 0% balance transfer until February 1, 2005 - an additional 3 months. I converted my Sony Card account with Citibank to this offer as the lowest APR in effect there was 4.9 until PIF.
The problem that I see is the $100 in purchases. When they apply payments, it goes to the lowest interest rate balance first. So that $100 sits there accruing interest at whatever your regular rate is until the BTs are paid off. And it's in your best interest to pay off higher interest debt first. So you either pay off all of the low rate first to get to the purchases (that defeats the purpose of the low rate BT) or the $100 sits there accruing some phenomenal amount of interest while you pay off your other cards. People are getting too smart and arent' buying on a card that has a BT, and the companies are getting desperate to get you to use that card for purchases. They've stepped up their calls about the credit card protection, credit reports, all that stuff--anything to get you to bite.
I think that you can do the two purchases, pay them in full and then do the balance transfer which avoids the interest issue. I asked them that question and they said it was fine. All three just have to be done with in the first three months of having the card.
That might work. They had another offer floating around where you have to make one or two (I can't remember) purchases every month. I shredded that one.
