What is a balance transfer fee?
A balance transfer fee is a fee that a credit card holder may have to pay when transferring the balance of one credit card to another. In Maryland, the fee for balance transfers is usually a percentage of the balance that is transferred. For example, a balance transfer fee of 3% means that if a person transfers a balance of $1,000 from one credit card to another, they will pay a fee of $30. Balance transfer fees may vary from one credit card company to another, and sometimes from one credit card account to another. When a credit card holder is making a balance transfer, they should take into consideration the balance transfer fee in addition to any applicable interest rates or other fees. This is because the balance transfer fee can add up and make the cost of a balance transfer more expensive than expected. In Maryland, the law states that credit card companies must disclose their balance transfer fees before the balance transfer is completed. This requirement is intended to ensure that credit card holders are aware of the fees associated with balance transfers and are able to make informed decisions about their credit card use.
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