What is a balance transfer fee?

A balance transfer fee is a fee associated with moving an existing balance from one credit card to another. This fee is often charged by the credit card issuer in California and can range anywhere from 3 to 5 percent of the total balance being transferred. Balance transfer fees are typically charged when a consumer is looking to move a balance from a card with higher interest rates and fees to a card with lower interest rates and fees. Many credit card companies may waive the fee for certain balance transfers, but this often depends on the credit card company and the amount of the balance being transferred. For example, some credit card companies may waive the balance transfer fee, if the balance is over a certain amount. It is important to note that balance transfer fees are not the same as annual fees or late payment fees. Annual fees are charges that credit card companies charge each year for use of the card, while late payments occur when the cardholder does not make the minimum payment by the due date. Balance transfer fees are not refundable, and cardholders should be aware of these fees when considering transferring a balance from one credit card to another.

Related FAQs

What is a credit limit?
What are the best ways to build credit?
What are the different kinds of interest rates for credit cards?
What is the Truth in Lending Act?
What is the Electronic Funds Transfer Act?
What is the maximum credit limit I can have?
What is a late payment fee?
What is the difference between a secured and an unsecured credit card?
What is a travel rewards credit card?
What are the advantages and disadvantages of using a prepaid credit card?

What is a balance transfer fee?

Related FAQs

Related Blog Posts