What is a balance transfer fee?
A balance transfer fee is a fee charged by credit card companies when someone transfers their balance from one credit card to another. This fee is usually a percentage of the total balance being transferred. In Wisconsin, the maximum balance transfer fee allowed is 5%. This means that if you are transferring $1,000 of debt, you would be charged up to $50 in fees. The fee is typically charged to the new credit card account, and can be waived if you’re transferring a balance to a promotional offer. It’s important to understand that balance transfer fees are separate from any additional fees that may be charged for account setup or regular monthly account maintenance. Additionally, some credit cards may also charge a penalty interest rate on transferred balances if you don’t pay off the balance within a certain period of time. Be sure to check the terms of your credit card agreement before signing up to make sure you know all the fees and penalties you may be responsible for.
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