Wednesday, June 4th, 2008
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What is a balance transfer fee?
When transferring an existing balance from one credit card to another credit card, a balance transfer fee is sometimes charged at the time of the balance transfer transaction. This balance transfer fee is a separate charge and is not connected to the finance charges that you may incur on that balance in the coming months.
Not all credit cards issuers charge balance transfer fees. And those that do charge this type of fee often differ in the way that it is calculated. Some credit card base the fee on the total amount transferred (i.e. 3% of the total amount transferred) while other credit cards have a standing transfer fee (i.e. $25 for each transfer), regardless of the amount transferred.
Tip: What is a a balance transfer fee and when am I charged this fee?
Before conducting a balance transfer with an existing credit card account or signing up for a new credit card in order to transfer a balance, it is important to fully understand the terms and conditions of all card involved. Be aware of any balance transfer fees that may be involved beforehand, so as to avoid any surprises.
For more information about credit card balance transfers, visit our balance transfer tips and advice page. You can also analyze potential savings easily with our balance transfer calculator.
See also: Credit card offers with no balance transfer fee
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