With so many benefits of a credit card balance transfer, there’s no wondering why so many consumers move forward with this decision every year. But here’s something to consider: most balance transfer offers charge a fee. With this in mind, you need to weigh the cost against the benefits to ensure that you make the best possible decision.
A balance transfer fee is assessed by the bank associated with the new credit card company. Rather than charge a flat fee, this is typically assessed as a percentage of the money you’re transferring. Take for example a $10,000 balance transfer. With a typical fee of 3%, you are charged $300 to make the transfer to the new credit card.
If a fee in place, is it still a good idea to make the transfer?
Find a No Transfer Fee Offer
If you’re opposed to paying a transfer fee, the best thing you can do is search for a no balance transfer fee credit card. There aren’t many of these to choose from, but those that are available are offered by some of the biggest banks including Chase and Citi.
Most balance transfer credit cards charge a fee of 3% to 5% for offering an introductory period of 0% APR. But when you find a no transfer fee offer, this never comes into play. Instead, you can move your debt to a 0% card without having to pay a fee that typically reaches into the hundreds of dollars.
Know What You’re Getting
The benefit of a no fee balance transfer credit card is easy to see. However, don’t make this decision until you consider the other details of the offer. For example:
- The length of the introductory rate.
- The annual fee.
- Other fees associated with the credit card.
There are balance transfer credit cards with no transfer fee that deserve your attention. If you want to save money on this financial transaction, this is one of the best ways of doing so. It allows you to leave your high interest credit card debt in the past, all without having to pay a high transfer fee.