E*Trade Financial has launched the E*Trade”Mileage Maximizer Account,” featuring an automated credit card balance transfer system that enables members of frequent flyer credit card programs to take advantage of mileage earning benefits without paying high interest rates on the balances they carry. With the account, members use a system to arrange a systematic balance transfer from their high interest credit cards to a low interest credit account at E*Trade.
Through an online process the member manages directly, he or she can designate automated monthly balance transfers from their airline rewards credit cards to a lower-rate E*Trade account, swapping a higher interest rate — on average 16.99 percent APR — for a lower balance transfer rate of 8.9 percent APR with no annual fee or balance transfer fee.
The online set-up process lets members set their payment preference — pay off the entire balance, a pre-set amount, or a percentage of the new statement balance. E*Trade’s balance transfer system monitors the member’s airline rewards card balance on a daily basis to determine the payment due date. When the system learns of a new payment due date, it schedules a transfer and sends the member an electronic notification of the planned transfer. Members may edit or cancel a particular transfer up until the date it is completed. Once the transfer is complete, the system sends the member an electronic confirmation. Even though a member’s credit card balance and payment due date may change from month to month, the Mileage Maximizer Account’s balance transfer system can be set to automatically ensure timely payments.
The E*Trade Mileage Maximizer Account offers a APR of prime plus 1.9 percent on balance transfers. Members interested in applying for or reviewing the program details of the program should visit http://www.etrade.com/maximizer