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Chauncey CrailContributor
Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto...
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Chauncey CrailContributor
Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto...
See Full Bio
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Chauncey Crail
Chauncey CrailContributor
Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto...
See Full Bio
Chauncey CrailContributor
Chauncey grew up on a farm in rural northern California. At 18 he ran away and saw the world with a backpack and a credit card, discovering that the true value of any point or mile is the experience it facilitates. He remains most at home on a tracto...
See Full Bio
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Dylan PearlCredit Cards Editor
Over a decade of editorial experience across a number of publications and more than 60 countries visited have given Dylan Pearl a wealth of travel knowledge, and the tools to effectively communicate that knowledge to others. Dylan has made it his mis...
Dylan Pearl
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Updated: Jan 2, 2024, 11:31am
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Table of Contents
- What Is a Balance Transfer Fee?
- How To Avoid Balance Transfer Fees
- Cards With Low or No Balance Transfer Fees
- How To Calculate Balance Transfer Fee
- Can You Get Balance Transfer Fees Waived?
- Bottom Line
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Balance transfer offers, when available, offer a major credit card perk for people looking to pay down debt. When carrying a large balance on a credit card, a cardholder can transfer that balance to a 0% introductory APR card to avoid interest charges. Such an escape from the consequences of carrying card debt does not, however, come without cost—there is typically a fee charged to move a balance from one card to another.
A balance transfer fee will usually range from 3% to 5% of the amount transferred. Cards with both no balance transfer fee and 0% APR periods are rare, so generally the calculation you’ll have to do is whether paying a balance transfer fee saves money compared to the cost of carrying a balance and accruing interest on your current card.
Featured Partner Offers
Welcome Bonus
Earn $200 cash back
Annual Fee
$0
Credit Score
Excellent, Good, Fair
Regular APR
19.24% - 29.24% (Variable)
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Bank of America® Customized Cash Rewards credit card
On Bank of America's Website
Welcome Bonus
$200
Annual Fee
$0
Credit Score
Excellent/Good
Regular APR
19.24% - 29.24% Variable APR on purchases and balance transfers
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening
Welcome Bonus
N/A
Annual Fee
$0
Credit Score
Excellent, Good
Regular APR
18.24% - 28.99% (Variable)
Credit Score ranges are based on FICO® credit scoring. This is just one scoring method and a credit card issuer may use another method when considering your application. These are provided as guidelines only and approval is not guaranteed.
N/A
What Is a Balance Transfer Fee?
A balance transfer fee is a fee charged for transferring your debt from one credit card to another. These fees typically amount to 3% to 5% of the balance carried. For example, a 3% fee to transfer a $5,000 balance would come out to $150. They are levied by the financial institution issuing the card to which you’re transferring the balance.
The incentive to transfer a balance is usually to avoid interest with an introductory low or 0% APR period. If you’re struggling to pay off credit card debt due to expensive interest charges, you can transfer the balance to another card offering an intro APR on balance transfers.
During a 0% APR intro period, you’ll avoid accruing interest on the transferred balance. You’ll still be required to make minimum payments and will want to pay off the debt in full before the intro period ends. If you don’t, the card’s regular APR will apply to any remaining balance.
You’ll want to run the numbers to make sure what you save on interest charges outweighs what you’ll pay for the balance transfer fee.
How To Avoid Balance Transfer Fees
At the low end, a balance transfer fee may be $5 or 3%, whichever is greater. But balance transfer fees can range much higher, such as 5% of the amount transferred.
There are credit cards with no balance transfer fee and 0% intro APR periods on balance transfers, but they’re rather uncommon. Those that do exist are likely to offer shorter intro APR periods—for example, 12 months rather than 18 or even 20—than cards that charge a balance transfer fee. If you elect a card that doesn’t charge balance transfer fees, you’ll want to ensure you can pay off your full balance before what’s likely to be a short intro period comes to an end.
Cards With Low or No Balance Transfer Fees
The only way to avoid balance transfer fees is to find a card that doesn’t charge them. Few cards offer no balance transfer fees, but among them are the following:
- Navy Federal Credit Union Platinum Credit Card
- Union Bank® Platinum™ Visa® Credit Card* (no longer available to new applicants)
- First Tech Federal Credit Union Odyssey Rewards World Elite Mastercard
- First Tech Federal Credit Union Choice Rewards World Mastercard
- First Tech Federal Credit Union Platinum Rewards Mastercard
- First Tech Federal Credit Union Platinum Mastercard
How To Calculate Balance Transfer Fee
Pro Tip
Use Forbes Advisor’s balance transfer calculator to test how much you could save with a balance transfer. This tool is especially helpful for comparing the balance transfer fees and 0% intro APR periods on new cards you may be deciding between.
Calculating a balance transfer fee is simple. First, take a look at your new credit card’s user agreement to find what the balance transfer fee is; a fee will usually range from 3% to 5% of the amount transferred. Some balance transfer fees present a minimum fee, meaning you pay a flat fee or a percentage of your amount transferred, whichever is greater.
Next, multiply the amount you wish to transfer by the percentage fee. For example, if you want to transfer a $5,000 balance to a card with a 3% fee, a $150 fee would be tacked on to your balance.
You should always calculate a balance transfer fee before making a transfer. This way you can see if what you save on interest charges will outweigh the one-time balance transfer fee.
Can You Get Balance Transfer Fees Waived?
Some cards may waive balance transfer fees for balances transferred within a certain period of time after opening your account. Other than that, it’s unlikely you’ll be able to convince a credit card issuer to waive a balance transfer fee.
Bottom Line
Performing a balance transfer is often the most reasonable choice if you need breathing room to pay down high-interest credit card debt. A balance transfer fee is the price you pay to be allowed to move your debt from one credit card to another. Note that the card receiving the balance must be from a different issuer than the original card where the balance currently lives.
If you decide to complete a balance transfer, make sure you have a game plan to pay off the transferred debt within any introductory low or 0% APR period your new card offers. Otherwise, interest will accrue on any remaining balance at the regular APR, and you’re back where you started. Also, know that good credit or better is typically required to get a balance transfer card.
Best 0% APR Credit Cards Of 2024
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*The information for the following card(s) has been collected independently by Forbes Advisor: Union Bank® Platinum™ Visa® Credit Card. The card details on this page have not been reviewed or provided by the card issuer.
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