Credit Card Fees Explained - Balance Transfer Fee

When you are about to apply for a new credit card or have recently acquired one you notice that there can be quite a few fees associated with having a credit card. You can encounter an application fee, an annual fee, cash advance fee etc.

What is Balance Transfer Fee?
Balance transfer fee is the fee that the credit card company charges for you to transfer a balance. Credit cards that offer balance transfer typically charge a fee that varies from 1-3% of the total amount being transferred. Each transaction has a separate fee.

You may see offers from credit card companies with low or now interest for a balance transfer. You may think about moving a balance over to a new card to get a zero interest etc. but keep in mind that depending on the amount you transfer the fee may turn out to cancel the benefits of transferring the balance.

If you'd prefer not to deal with balance transfer fees, you can opt not to ever transfer a balance or select a card that doesn't charge a balance transfer fee.