What is a balance transfer fee?
A balance transfer fee is a fee charged by credit card companies when a customer moves a balance from one credit card to another. In Texas, it is important to be aware of this fee because credit card companies are required to disclose the amount of the fee and any applicable terms and conditions when customers transfer balances. Balance transfer fees are typically a percentage of the total amount transferred, generally between 3 and 5%. This means if a customer is transferring a $1,000 balance, they would pay a fee of at least $30. Some credit card companies will also charge a flat fee instead of a percentage, so it’s important to read the fine print before transferring a balance. Balance transfer fees are part of the cost of transferring a balance and should be factored into the decision to transfer a balance in the first place. To avoid this fee, customers should look for a credit card that offers balance transfers without a fee.
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