What is a balance transfer fee?

A balance transfer fee is a fee that is charged when you transfer the balance of one credit card to another. The fee is usually a percentage of the balance transferred. In Maryland, the maximum balance transfer fee is 5% with a minimum of $5. This means that if you transfer a balance of $100, the maximum fee you pay would be $5. If you are transferring a balance from one card to another, you may be able to avoid paying any balance transfer fee if you can find a card with a promotional offer. These offers usually last for a certain time period, such as six months or a year, and during this period you can transfer your balance from one card to the other without having to pay any balance transfer fee. It is important to read the fine print before transferring your balance so that you know exactly what fees you will be charged and how long the promotional offer will last. You should also be aware that if you do not pay off your balance during the promotional period, the remaining balance will be charged a higher interest rate. It is important to understand the fees associated with a balance transfer before making the decision to transfer your balance. Knowing the cost of the fee and the promotional period helps you to make an educated decision when deciding whether or not a balance transfer is right for you.

Related FAQs

Is there a maximum amount of credit card debt I can have?
What is a credit limit?
What is a statement credit?
What is a balance transfer fee?
What is a travel rewards credit card?
Do I have any recourse of action if a lender violates the Fair Credit Reporting Act?
What is a chargeback?
What is a cash-back credit card?
What is a co-branded credit card?
What is a secured credit card?

What is a balance transfer fee?

Related FAQs

Related Blog Posts