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A 3% balance transfer fee is a good deal when it is paired with a 0% balance transfer APR. Nearly all credit cards with 0% balance transfer APRs have balance transfer fees of 3%, and you can still save a lot of money by reducing your interest rate even when there’s a fee.
You can see how much one of the best balance transfer credit cards could save you by trying WalletHub’s free balance transfer calculator.
Popular Credit Cards with 0% Balance Transfers
When you initiate a balance transfer, the transfer fee is usually charged as a percentage of the transferred amount and then added to the balance. For instance, if you transfer a $6,000 debt to a credit card with a 3% balance transfer fee, you will be charged $180, so the new balance will be $6,180. But the fee may be worth it if you pay less in interest overall, and the longer the 0% APR offer, the less interest you should pay.
This answer was last updated on 08/28/24 and it was first published on 06/13/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
People also ask
A balance transfer fee is a charge imposed by a credit card issuer when a cardholder transfers an existing debt from one credit card to another. This fee is typically expressed as a percentage of the amount being transferred and is applied at the time of the transfer.
The purpose of the fee is to cover the administrative costs associated with processing the balance transfer. The typical balance transfer fee is 3% of the amount transferred, with...
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The average balance transfer fee for credit cards is 3.12%. A balance transfer fee is a charge that a cardholder typically must pay when they transfer debt to a credit card. This charge is usually a small percentage of the transaction amount or a small fixed cost, whichever is higher. For large transfers, the percentage fee will almost always be higher, since the fixed cost is usually only $5 or $10.
According to WalletHub data, the...
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Yes, it is worth it to transfer a balance because it is a great way to refinance existing credit card debt. If you can get a lower interest rate in the process, it will save you money and help you pay off the debt sooner. For example, transferring a balance with a high APR to a 0% balance transfer credit card could save you a lot of money even if the card has a balance...
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FAQs
In almost all cases, a 3% balance transfer fee is worth paying, and sometimes even a 5% fee. Credit cards have extremely high interest rates, and because of that, credit card debt can be very difficult to get out of.
What is a reasonable balance transfer fee? ›
A balance transfer fee is a fee that's charged when you transfer credit card debt from one card to another. It's usually around 3% to 5% of the total amount you transfer, typically with a minimum fee of a few dollars (often $5 to $10).
What does a 3% balance transfer fee mean? ›
A balance transfer fee is a one-off charge you'll usually have to pay to switch a balance. It's usually a percentage of the amount of debt that you transfer – the typical fee is around 3%, with a minimum charge of about £3.
What is the normal rate for balance transfer? ›
Most issuers charge a balance transfer fee of around 1% to 5% of the amount you transferred. The fee is usually added to your balance.
Can I negotiate balance transfer fee? ›
Can you negotiate a balance transfer fee? You can always call your credit card issuer to see if you can get a lower balance transfer fee. While they might not say yes, it's worth seeing if you can negotiate the balance transfer fee on an existing offer.
Is 3% balance transfer good? ›
Is a balance transfer fee worth it? If you have a significant amount of credit card debt, the 3% balance transfer fee (or sometimes even a 5% fee) is absolutely worth paying when transferring your balance to a card that has a 0% intro APR offer, but only if you still need time to pay off a balance.
Do balance transfers hurt your credit? ›
A balance transfer can improve your credit over time as you work toward paying off your debt. But it can hurt your credit if you open several new cards, transfer your balance multiple times or add to your debt.
Is a 3% transaction fee a lot? ›
Foreign transaction fees generally range from 1 percent to 3 percent and tend to average around 3 percent of each transaction. Paying around $3 per $100 you spend may not sound that expensive, but these fees can add up if you're making a lot of purchases with your credit card.
What is the catch to a balance transfer? ›
The problem is that transferring a balance means carrying a monthly balance. Carrying a monthly balance by not paying off the minimum amount due each month—even one with a 0% interest rate—can mean losing the card's introductory APR, its grace period and paying surprise interest on new purchases.
What is the downside of a balance transfer? ›
You could make the problem worse
The truth is, with a balance transfer card, you're simply moving money around without improving your debt problem. In fact, if you don't practice good financial spending and repayment habits, you could make the problem worse.
It costs $30 to $50 in fees to transfer a $1,000 balance to a credit card, in most cases, as balance transfer fees on credit cards usually equal 3% to 5% of the amount transferred.
Is it OK to keep doing balance transfers? ›
It may sound like a good idea to keep transferring your balance to a new card to avoid paying interest altogether. However, repeatedly opening new credit cards and transferring balances to them can damage your credit scores in the long run.
How to figure out balance transfer fee? ›
For each balance you transfer, multiply the total balance by the percentage your new card charges for balance transfers. If the percentage amount is higher than the flat fee the card charges for balance transfers, the percentage amount applies. If the percentage amount is lower than the flat fee, the flat fee applies.
What is a good balance transfer fee? ›
If you can't find a credit card without a balance transfer fee, 3% is a good balance transfer fee to look for. Choosing a card with a lower balance transfer fee helps you keep the cost of your balance transfer to a minimum, which can make it easier to pay off the balance on your new credit card.
How much is too much for a balance transfer? ›
Card issuers typically have rules surrounding the amount of debt you can transfer in relation to your credit limit. Many issuers are generous, giving cardholders the ability to transfer their full credit limit, but in some cases, your transfer limit may be capped at 75 percent of your overall credit limit.
How to get transfer fees waived? ›
Check if your bank or provider offers fee discounts
Some US banks and transfer providers do offer fee discounts — or could even waive wire fees entirely — for some customers. Ask your bank if there's an option to cut your costs, or have a look at your specific account terms and conditions to understand your options.
What is an excessive transfer fee? ›
Excessive transaction fees, also called excess transfer fees, withdrawal limit fees, or excessive withdrawal fees, refer to penalties for excessive withdrawals from a savings or money market account.
What is a typical bank transfer fee? ›
Average wire transfer fees
Wire transfer fees have a wide range – from $0 to $50, depending on how and where you're sending the money. Domestic outgoing wire transfer fees typically range from $0 to $35, while international outgoing wire transfer fees are usually $35-50.
What is a reasonable transaction fee? ›
Key Takeaways. A per-transaction fee is an expense that businesses pay a service provider each time a customer payment is processed electronically. The per-transaction fee can vary depending on the service provider but usually ranges between 0.5% and 5% plus certain fixed fees.
