A balance transfer fee is charged by a credit card issuer to transfer a balance from another creditor. Learn the pros and cons of balance transfers.

The best no-fee balance transfer credit cards of July 2021

Table of Contents
What Is a Balance Transfer Fee?
How Balance Transfer Fees Work?
Special Considerations
Advantages and Disadvantages
Example of a Balance Transfer Fee
The Bottom Line
Balance Transfer Fee FAQs That means if you transfer a balance of $1000 and your card company charges a fee of 3% of the balance, your balance transfer fee will be $30.
Opting for a credit card that doesn't have any balance transfer fees is the best way to avoid paying these additional charges, especially if you have a lot of debt that you want to move over to a low-interest card. Pros
Allows you to pay off debt at a lower interest rate
Provides an opportunity to save money
Makes life convenient by allowing you to consolidate all of your debt into a single vehicle
The lender doesn't have your best interests at heart
Introductory offers mean you have a shorter amount of time in which to pay off your debt
You may have to pay more in interest if you pass the introductory period
A consumer considering a balance transfer should calculate the total cost of repaying the current debt over time, with and without accepting a transfer offer. You can calculate the balance transfer fee on your credit card by multiplying the balance you wish to transfer by the percentage listed on your cardholder agreement. Suppose a credit card issuer offers you a promotional interest rate of 2% for an introductory period of 12 months, with a balance transfer fee of 1%.

Balance Transfer

More in Personal Finance

Terms in Balance Transfer

Balance Transfer Fee