Received what seems like a decent "pre-qualified" offer from Fleet Boston. 0% BT and, 0%APR (both until 4/05) and no annual fee. I have a CapOne Balance I can transfer (had built up credit limit to show high credit on CR). Also, according to PG, my Equifax score is 672. My question is, the consumer info states the following Variable Rate Information: Purchases and balance transfers: the higher of (a) minimum rate of 8.99% APR (.02463% daily periodic rate) or (b) LIBOR + 7.830%. What is LIBOR? Would my APR be 8.99%? I would really like to get this card before the merger goes through, I had a BOA credit card years ago, that was charged-off. This fell off my CR about 2 years ago and currently I am banking with them but afraid to apply for a credit card with them. Thanks in advance for any help ;-)
LIBOR is the London Interbank Offered Rate is the international rate major banks charge to borrow US money on the london market. So the rate will never be less than 8.99% and will inflate if the LIBOR rate goes up. The current LIBOR rate is just over 1. So add 7.83% to whatever LIBOR is and that will be your rate. Very similar to the US Prime Rate concept.
Please read the fine print or call Fleet to confirm before applying, the wording is ambiguos at best! I received the same offer about a month ago and like you I thought I was getting a good offer. The 0% APR on purchases is contingent upon a BT with the initial application. Additionally, the BT is in fact 8.99% and NOT 0%! I found out after the fact when I saw finance charges on my first statement. I later called Fleet who eventually lowered the APR on my BT to 2.99% once I complained.
Additionally, I just want to caution you that FleetBoston's terms of agreement include that the laws of Rhode Island apply ... one of the unfriendliest states to consumer (the other being Wyoming) ...
ONE OTHER "DOWN SIDE" WITH FLEET...THE CLOSED ACCOUNT PENALTY RATE!!!!!!! (YOUR IN DEFAULT) Close the account with a balance and SUFFER THE CONSEQUENCES!!!! LIKE 23.99% OR MORE!!!
